For Impact


Kiva on Groupon – Do The Math

For Impact Ideas | | Nick Fellers

I was reluctant to post this. Reluctant because organizations tend to fall back on MORE marketing instead of picking up the phone to schedule a visit.

Just appreciate this one for the creative MATH.

I got a Groupon notice this morning about Kiva. I could “Save $10 on a $25 Microloan Gift or Credit to Help Global Entrepreneurs through”

My immediate reaction was to think it was absurd. People should be doing this to HELP. Not to save money.

Then I did the math.

  • Groupon only lets you buy ONE credit and it’s only selling 500 credits.
  • On top of that, if you buy the credit (as I did) you have to go to the website and redeem. Not everyone will do this – in which case you’re purchase is converted to a straight up donation.
  • Worst case scenario, Groupon is out $5000 ($10 per credit times 500 purchases).
  • The credits sold out in no time. Groupon just BOUGHT 500 lenders for $5K and a lot of marketing to boot.

That’s pretty great math.