Online group buying sets a new trending in buying and saving. The business model is simple: The group-buying sites find local businesses willing to provide large discounts in return for spreading their names to new customers. Consumers log on daily, check out their hometown's deals and either sign up or ignore the deal.
Groupon: The pioneer of the group-buying sites, serving more than 140 markets in the world. Members receive the coupons by email and, if a pre-set quota of takers isn't reached, the deal is off. No harm, no foul -- except everyone involved is a bit sad.
Living Social: The biggest competitor of Groupon. Living Social runs its business in a smart way. In order to scale fast, it offers incentives to encourage members to share deal links on Facebook, Twitter or through email.
Tippr: Tipper offers deals in 25 major cities. Unlike Groupon or Living Social, Tipper gives users a choice of three deals on its home page, with at least one new deal each day. Incentive discounts get larger as more people sign up for the deal, though there's a limit to how much the discount increases.
There are a few more regional players, such as Plum District, 8coupons (offers 8 deals a day, instead of 1), BuyWithMe, GiltCity, Juice in the City, We Give to Get (worth mentioning that when you buy a go-go coupon, 10-percent of the money you spend while using the coupon is donated to the ActOfGood charity of your choice), Crowdsaving.com
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