The following excerpt is from “Groupon Therapy” by Lauren Etter in the August 2011 issue of Vanity Fair (available on newsstands now), in which Groupon co-founder and CEO Andrew Mason shares how his work in developing an earlier social action website called the Point, the cost of which had been underwritten by investor Eric Lefkofsky, evolved into Groupon, which is considered by many to be the leading group discount buying site on the Web, after:
“I’d always thought with the Point that I’m going for the big win and changing the world,” Mason says. . . . But the socially conscious efforts didn’t attract enough subscribers, and they fizzled. By October 2008, the Point was on the verge of being shut down.
“Eric [Lefkofsky] was pressuring me to think radically differently and figure out a way to monetize the site,” Mason recalls.
Mason had noticed that the most popular campaigns on the Point involved group buying. He decided to set up a sub-business dedicated to commerce rather than ideals. At first, Mason say, he thought the new business would just be a way to pay the bills. His friend and co-worker Aaron With came up with the name Groupon — a fusion of the words “group” and “coupon.”
Mason credits Lefkofsky for the shift in his focus: “He just created a splinter for me. It was that agitation that he created that ultimately led to the formation of Groupon.”