With copycats launching their own version of the Groupon concept in every U.S. city, will the company soon be sorry they didn’t take Google’s six billion dollar offer? Even Facebook, with its Facebook Deals launched in April, is stealing the idea. (Since Facebook is on a roll stealing ideas anyway….cough, cough…why not?)

By now, most of you have probably heard of some of the biggest copycats of Groupon including LivingSocial.com and DealsThatMatter.com. Here in Salt Lake City, the local “me too” is “KSL Deals”.  If you have a local copycat, please share it in the comment section below.

But why not copy the Groupon idea? When you think about how Groupon works, it seems like the best marketing idea of our time. An article in the Business Insider, does a nice job of explaining how the social web has allowed the Groupon business model to flourish:

“Groupon could not have existed before now. It’s a business that can only happen now because prior to now you don’t have the social elements of the Web working the way that they should and you don’t have merchants appreciating the opportunity the way they could or should.”

But even if Groupon’s valuation at its IPO runs higher than $10 Billion, will it soon be a flop? I certainly think so. With thousands of competitors including Facebook, and still no profitability, Groupon may just be among the speculative giants of the new social technology bubble.

Do you agree or disagree? Would love to hear your comments.

Posted by Corey Curwick on June 29, 2011