As Groupon plans their I.P.O. (with a $30 Billion Valuation no less), it’s clear that they have been doing something right. But the question remains: does Groupon fit into your your marketing plan?

It seems like a good idea – Groupon distributes your special deal to their wealth of subscribers that loosely fit your demographic (Sex, Age, Location) and they buy hundreds or thousands of your deals and everyone’s happy, right? Well, it depends on your marketing goals.

Are are looking to bring first time users through the door? Of course.

But are you willing to do it at a loss? You are required to offer your product or service at a 50% discount (at least). Then on top of that, Groupon takes their own cut of what is actually paid, and you are left getting back about 25% of the value.

Here’s another rub: some of the buyers of your deal may be current customers or people with a one time need that would have paid full price otherwise. I recently bought 3 Groupons for myself, my mom and my mother-in-law for the Salon at the Luxor Hotel and Casino in Las Vegas. We are going on vacation in July and would otherwise be paying over $100 for our pedicures.

Don’t get me wrong – I’m a fan of the daily deal sites as a promotional tactic, if you’re doing it for the right reasons. But with every local newspaper and broadcast station now developing their own version of Groupon, I caution businesses to make sure this works with your marketing goals before you invest your brand’s time and money.