Hi! I’m the former Chief Executive of Groupon’s 8 year old child, and I’m here to explain to you why my daddy got fired today for not understanding the basics of how his business stays profitable.
As far as I see it, if I act as a broker for you, and find you a car (for example) then it is a waste of all of our time. You have to pay me to find a car that you could probably have found yourself. You’re also more aware of exactly what you are after. In addition, if I find a shit car that breaks, you’ll blame me even if it was the same car that you would’ve bought yourself, because that’s how most people work when it comes to blame and responsibility. Also, I’m 8 so I can’t drive it over to your house for you without a booster seat.

If, however, I can act as a broker for you, your brother, his best mate, his best mate’s girlfriend and everyone from Melton Mowbray… then I can get a job lot of cars at a decent price, sell them to you and the others for a discount, and rake in the difference for myself. The more people I buy the cars for, the better the difference I can levy, and the more money I make for ice pops and penny whistles. If I sell enough, even the odd one of two that break I can sort out without the process becoming unprofitable.
But this only really works well if I can focus on certain items, that are guaranteed to be popular and keep lots of people interested. If I get discount budgie cages, even though they’re super pretty and they’re dirt cheap, chances are I won’t sell enough to cover the cost of the booster seat I bought to drive over to the pet shop, because not enough people have budgies.
But the biggest problem is when I source business for other businesses, and take a percentage of the take. For example, last week I sold vouchers for lemonade from a friend’s lemonade stand down in the park. People paid up front, 75p a go, and I took 10% of all sales. But it turned out the friend was just pissing in a bottle and selling it to people in plastic beakers. I had no idea because I don’t have the time to quality check everything I source, because I source so many different types of products and services and I only have 20 different colours of crayons to keep notes on them.
Anyway, I was happily counting the money I made from someone else’s lemonade business, but then suddenly I had lots of people coming round to my house shouting about wanting their money back and how bad a child’s piss tastes, and so on. Because I brokered the deal, they blamed me when it went wrong… and never came back to buy more deals.

Because I was acting as an agent for another party, little Jimmy Monroe who pisses in bottles, I couldn’t really do anything except try and hide my face from all the loud nasty noises coming through my letterbox. Little Jimmy didn’t really care – he knew that it would be hard work for me to get him to pay the money back, and he was shielded by the fact that people were blaming me for the pissy taste in their mouths.
Anyway, I’m going to have to leave it there as I believe it’s almost nap time and I’m pretty sure I saw a cat in the garden, but I hope this has been interesting reading for you. Come back to mine for a cool glass of lemonade whenever you like!
xxx

