Reminds me of an old neighbor. His 19 year-old son---nice entrepreneurial spirit---started an auto detailing business out of his garage. Wanted an empire TODAY, so he tried one of those Groupon offers. Practically gave away his services---I think his regular rate was $175 for a full detail (which I thought was worth it---he did great work), but with Groupon he was only getting like $45 per detail. Not sure how it all breaks down, but I know Groupon gets a chunk for doing the marketing/promoting.
It worked to get him customers. Within a few weeks he got a check for $10,000 from Groupon and had a list of customers a mile long. Was booked solid the entire summer. At first he was flying high. Had $10,000 and customers lined up for months.
But then something happened. About a month later he had blown the $10,000 on a small boat, a POS 4-wheeler and god knows what else. He still had business expenses and employees to pay, not to mention his own personal expenses. All this while still having a few months worth of work he'd already been paid for. So at that point, with all the money dried up, he was working for nothing. And soon all of his employees (2-3 friends of his) were nowhere to be seen. Mom and grandma were out helping him. Little brother was out helping him. It was sad.
A few weeks later I'm out washing my truck and my neighbor walks over. I ask about his son's business and he tells me he'd made a huge mistake using Groupon, and that he ended up breaking the contract with them (took him an attorney and who knows how much money to do it). Took on way too many customers and charged practically nothing. He tried to get some of those Groupon customers back, but it never worked out. He ended up shutting down and going to work at Best Buy.
So after that long winded nugget, the moral of the story is, letting people buy or watch your product for practically nothing with the hopes of repeat business later on, when you're probably going to have to raise your prices to actually make money, seldom works.
I get what Iowa State is trying to do, but at some point they'll have to raise prices to make some real money. Question is, if the product continues to be sloppy, who's going to buy it?