The problem with group buying sites is that the technology is super simple to create. A good programmer can basically build a site like this over a weekend. But then you have a chicken-and-egg problem; without a big customer list you can’t attract top retailers, and without great offers from top retailers, customers won’t sign up. Some investors have been calling these types of business a “butterfly” because it needs both wings in order to [...]

The annual South by Southwest Interactive Festival has been known as the launchpad for web-based technology companies. The most famous is probably Twitter, but other companies such as Smule and Gowalla have launched during the festival. Austin-based Localiter is hoping to make a similar splash at the festival with their daily specials made possible by group buying. Localiter will launch in March offering daily deals from Austin businesses. Customers sign up on the Localiter website [...]