I’ve blogged before about the tribulations of Groupon and its “daily deal” couponing business.
The company has found it incredibly difficult to develop a sustaining business model, what with increased competition and the propensity for vendors to cease their participation after one or two deals due to disappointing program results.
With Groupon taking 50% of every deal plus a credit-card handling fee, far too many vendors found that they couldn’t make money on “daily deal” promotions, and often, “repeat business” from the ultra-price-savvy consumers who tend to participate in such schemes never materialized
Groupon founder and former CEO Andrew Mason was hardly the typical head of a dotcom business. His business background was rather thin, despite having started a Saturday morning bagel delivery service in suburban Pittsburgh when he was just 15 years old.
Instead, Mason graduated from Northwestern University in 2003 with a degree in music, signaling where his interests truly lie. After having worked at several Chicago-area tech companies, Mason managed to snag some seed money from Chicago entrepreneur Eric Lefkofsky, and Groupon was born in 2008.
By 2010, Groupon was the latest star in the constellation of online businesses, with annual revenues of ~$800 million. In December of that year, Groupon was offered $6 billion to sell to Google, but Mason and his company board foolishly declined the offer.
But within two years, Groupon’s fortunes had turned dramatically for the worse. Herb Greenberg of CNBC named Mason the “Worst CEO of the Year” in 2012, writing:
“Mason’s goofball antics, which can come off more like a big kid than company leader, almost make a mockery of corporate leadership – especially for a company with a market value of more than $3 billion. It would be excusable, even endearing, if the company were doing well … but it’s not.”
After one too many missed quarterly goals, Groupon’s board of directors ousted Mason on February 28, 2013. On the day of his dismissal, Mason wrote to his employees:
“After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today. If you’re wondering why … you haven’t been paying attention.”
But now Mason is back – just not in the same way. This time, it’s as a musician. The former punk band keyboardist (and also husband of pop singer Jenny Gillespie) is releasing an album titled “Hardly Workin’” that contains seven songs. It was produced by Don Gehman, who has also worked with R.E.M. and John Mellencamp, among others.
Here’s what Mason has to say about his latest project:
“I managed over 12,000 people at Groupon, most under the age of 25. One thing that surprised me was that many would arrive at orientation with minimal understanding of basic business wisdom.”
This album pulls some of the most important learnings from my years at the helm of one of the fastest-growing businesses in history, and packages them as music. Executives, mid-level management and front-line employees are all sure to find valuable takeaways.”
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“If you’re seeking business wisdom, you don’t need no MBA — look no further than the beauty that surrounds us every day …”
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With lyrics like these, one wonders if Andrew Mason isn’t talking so much about 12,000 employees, but instead about himself!