Groupon has revolutionized the way people consume goods and services through its innovative daily deals / collective buying model. In just 3 years since its inception Groupon has expanded to over 500 cities in 35 countries and has a subscriber base of over 51 million which it hopes to grow to 150 million by end of 2011. With millions of people getting hooked to their daily deals, Groupon is committed to provide its userbase a great way to discover their own cities and fun and meaningful ways to get involved in bettering their communities.
In July 2010, Groupon launched G-Team, their philanthropic initiative which aims to harness the power of their growing subscriber base and their killer business model of ‘collective buying’ for community good.
G-Team are social action campaigns around fundraising and civic engagement based on the similar collective action model as of Groupon. While Groupon makes it easier for people to get great deals only if certain number of people buy the deal, G-Team campaigns makes it easier to create real community impact by getting the minimum number of people required to make it happen.
All G-Team campaigns have a “tipping point” which is the critical mass of people needed — people pledge to give money or do something, but no one has to do a thing until the campaign crosses its people threshold. This approach allows the campaign to gain all the people needed to make it successful before anyone is asked to take any action.
How can Nonprofits Benefit?
Groupon’s G-Team campaigns offers a great deal to Nonprofits. By using the Groupon platform Nonprofits can ‘A’ promote the cause to their huge subscriber base which is growing at a phenomenal rate of 3 million a month and ‘B’ get enough people behind the project to make it happen whether it be fundraiser or a social action project (Standups, Flash-mobs). According to Patty Huber, G-Team Community Manager, Groupon has run over 60 cause related campaigns and raised over 1.3 million for nonprofits since its launch in July 2010.
Currently G-Team campaigns are scheduled only in select cities in the US – Chicago, Austin, New York, San Francisco, Washington D.C, Los Angeles, Portland, Atlanta, Boston, and Minneapolis but they plan to extend soon to more cities including those outside of the US. Further G-Team campaigns are local (they do at times run national level campaigns), run for a short amount of time (usually 1-3 days), and support causes that the Groupon community cares about. In addition, they’re only for specific projects and only succeed if they reach a ”tipping point” (just like the Groupon bargain of the day).
See How the Model Works and an Interesting Fact about Grouopon
To learn about this new approach check out the video below in which the Groupon Founder Andrew Mason himself explains how collective action approach works. Andrew’s first startup ‘The Point’ was a web based platform which allows communities to run cause related campaigns using the collective action approach. From this very idea emerged Groupon which is now on its way to become a billion dollar company and is estimated by industry experts to become as big and powerful a brand name as Facebook and Google.
Now isn’t that interesting – a billion dollar business idea emerged from a non-profit initiative. The group action approach which was first conceived to help cause related campaigns be more effective has turned out to be of immense commercial viability – generating millions in revenue for Groupon and a start of a new social commerce era being viewed as the next big thing.
Enjoy the video by Andrew Mason and learn how you can run effective cause related campaigns on Groupon’s platform
To apply for G-Team Campaign or if you’ll like to suggest a campaign, fill-out the online application form here http://www.groupon.com/g-team