The biggest issue with Groupon is the fact that while it may offer a great deal for consumers, and may make tremendous revenue on each deal, it doesn't appear to be a great deal for the merchants involved. Oftentimes it seems like a losing proposition in order to have customers come thru the door - people who may never return until there's another Groupon.

That may work while the economy is bad, but don't expect merchants to give in so easily once the economy improves. Groupon will have to either take less of a cut from the deal or offer a worse "deal" to the consumer.