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To: DoggyDogWorld who wrote (2877)	6/5/2012 1:56:47 PM
From: Zoso_17	Read Replies (1) \| Respond to of 3249

Re: At what price would you buy GRPN? Do they book revenue the same way? For the Groupon coupon model (what most people think of), GRPN collects the money from the deal and remits the percentage to the client. They book the net amount (excluding taxes) that they retain after paying the client as revenue. Groupon also sells goods, and has a very small revenue segment where they recognize the actual gross revenue because they hold the inventory and aren't just acting as the agent. PCLN has two categories - for the "Name Your Own Price" segment they book the gross revenue, and for the more traditional travel services they use the net revenue. I think PCLN has gotten into trouble over grossing up the "Name Your Own Price" revenue recognition.