Call me crazy, but I didn't read a statement indicating that "everyone who uses Groupon is a bottom feeder." I'm not sure where becoming defensive or insulting really helps the issue.

It was mentioned, and that jibes with my experience that the offers can bring out those who have a sense of entitlement and who never intend to spend more than the face value of the coupon.

I ran my classes on Living Social a couple times. My classes go for $65, Living Social sold the coupon for 50% and I received 50% of that. So, 1/4 of the usual amount for the same amount of work. Of course, I knew in advance that was the deal, so that's on me. The real issue is when people started to write in terms and conditions that didn't apply. Some wanted to use the coupon for a type of class that it didn't apply to. Others would no show or cancel at the last minute but still want a spot in a different class. Even worse, some would no show then call Living Social for a refund. Obviously with limited spaces in any session, there's no way I would fill those spaces. For me, this brought out more of the types of customers that I don't want to deal with. Were they all like this? No. But I would say that the number of problems that I ran into was pretty significant.

As a customer would I use Groupon or Living Social? Absolutely. As a business, the only way I could even recommend it is if you have a strong ability to upsell, are slow where you need an immediate infusion of customers and cash, and have a good tolerance for BS. If any of those don't apply, I'd steer clear.