The Market’s 5 Most Disappointing Business Ideas EVER

B2B and other concepts' potential far outstripped their results

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Daily Deals

Groupon185 The Market’s 5 Most Disappointing Business Ideas EVERJust to be fair, daily deal e-coupons probably will never go away completely — nor are daily deals entities like Groupon (NASDAQ:GRPN) and LivingSocial.

Now that the euphoria is wearing off, however, it’s clear the triple and quadruple-digit growth rates from 2010 aren’t sustainable, even though traders plowed into these stocks as if they were sustainable.

One of the chief complaints about the e-coupon industry is that the marketing tactic doesn’t actually cultivate repeat customers — it just forces a merchant to sell goods or services at a loss. It’s not a complaint that applies universally, though; some vendors have been able convert those one-time customers into repeat customers. Those stores are just far less common than first assumed.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/the-markets-5-most-disappointing-business-ideas-ever/.

©2014 InvestorPlace Media, LLC

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