When Social Media Meets Local Networking

There is a growing trend in e-commerce that leverages social media and local networking. One great example of this is the website Groupon, which promotes collective buying power with daily, city specific bargains. These bargains run the gamut from things to do, eat, and see. Their highest selling daily deal to date came from the Chicago pizza chain, Pompei. They signed up with Groupon to offer $10 worth of pizza for $5. They expected a sell a few thousand offers but ended up selling over 9,000 offers to local residents. So, what's the catch? There's no small print or hidden restrictions but Groupon makes one stipulation. Before the "deal is on", a minimum number of people must agree to buy the deal. This then spurs buyers to promote the deal via social networking channels like Facebook and Twitter.

Check out this article from CNNMoney.com to learn more about Groupon and how they recently got $30 million in VC funding!

Merchants think socially, act locally

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