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Daily Nuggets: A For Impact Blog

Kiva on Groupon – Do The Math


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 Kiva.org.”

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.