As quite a few of you know, I'm not a big fan of Groupon. In fact, I absolutely hate Groupon. My biggest issue is that their marketing plays on the common misconception amongst small business owners that a massive influx of new customers = Mojitos on the beach in Mauritius.

No no no no.... Yes, you will be transacting more, but your chances of actually making a profit or gaining repeat custom are slim.

Firstly, Groupon demands a heavy promotion; typically 50% off your regular prices, then they take 50% of the rest, leaving you with 25% to pay the wages and electricity.

The second issue is that you may not be able to handle the business that it throws your way. One business I know became booked solid for 3 months, making a huge loss each month, nearly sending it to the wall.

The final point is that most people through your doors will be 'Coupon Groupies' that are extremely fickle and resent paying full price for anything. They won't be back until your next offer.

That said, I do know of one client who made a killing with a hair straighteners from the most popular brand. Unfortunately, the brand got wind of the promotion and threatened to blacklist them....

For those of you still reading, well done; I expected everyone to skip directly to Groupon infographic below. It outlines how the business works and how they (foolishly) turned down £6 BILLION from Google....

Infographic courtesy of Online MBA.