Hi Alex,
Thanks for responding to my question, but I must wholeheartedly agree
with Robert’s critique of Groupon’s policy. Offering an API that
excludes important functionality is insulting to the developer
community and contrary to Groupon’s long-term business interests. I
can appreciate that by keeping certain functionality exclusively for
its own website, Groupon is attempting to dig moats in the inherently
moatless business of selling coupons, but I assure you that it is a
losing strategy.
First, with regard to the specific topic of Now Deals, the marketplace
is overflowing with deal sites, and there is nothing particularly
novel or difficult to imitate about Now Deals. Soon enough,
comparable “instant deals” will be everywhere. The only question is
how much of the market Groupon will reach. By fostering a robust
developer community, Groupon can leverage the creativity, programming
acumen, and marketing skills of literally thousands of entrepreneurs
and hobbyists—most of whom are intensely loyal to partners who provide
them with quality data. Alternatively, by shunning developers in the
instant deals space, Groupon leaves itself vulnerable to competitors
that respect the power of the development community.
Moreover, it is irreconcilable with common sense that Groupon spent
nearly $800 million in marketing during 2011, yet it chooses to watch
this potentially vibrant marketing channel lie fallow. Would Groupon
rather pay for advertising than have its deals featured for free on
innovative applications?
If Groupon believes that its stronger position in the instant deals
space merits lower affiliate commissions, then offer lower affiliate
commissions on these types of deals… but don’t throw the baby out with
the bathwater by shutting out the developer community entirely.
This leads me to the most important point in this rant. It may seem
from Groupon’s perspective that suppressing Now Deals here -- or
adding an onerous condition there – is at most a nuisance to
developers, and in any case reversible at some point in the future.
The flaw in that logic is that it fails to realize that developers
have memories, and API providers have reputations in the developer
community. Just today, a friend of mine who happens to be a prolific
app builder told me that he plans to exclude Groupon entirely from his
latest viral application because, in his words, “there’s nothing worse
than working with a company that wastes your time.”
In short, the moat that Groupon thinks it’s digging by inhibiting a
robust developer community will be its own grave – nestled somewhere
between
pets.com and the pet rock.
Spare us a corporate boilerplate response and just make the
intelligent business decision by undoing this myopic, protectionist
policy, NOW.
Thank you.