These malignant predators pressure businesses to sell their product or service for less than 50% off their regular rate, then take 50% of that. If you are a business owner, be prepared to experience a loss per customer. This was the absolute worst marketing decision I have ever made for my small business, especially since overly entitled customers are now writing negative reviews because they can't get what they want right when they need it! The quality of the customers has not been what we are used to either--a lot of these people "coupon hop" and are just looking for the cheapest deal, they don't get to know your business and understand what you really offer and show up with out of whack expectations.
Living Social also does not allow businesses to put a cap on how many vouchers they sell, so especially if you have a good reputation, you're going to sell a ton of them. I did research after I signed up for the deal and saw that other reputable people who did what I do had been reviewed negatively by LS coupon people, but they would not let me get out of the deal, so I was forced to run it. The only thing I can do is refer people to living social to get a refund if they're unhappy.
I think a lot of people that buy these coupons either don't realize how much of a loss businesses are taking on these, or they don't care if they drive a business to ruin. Never again.