The secret is out - there's free cash online
Cash back sites are set for explosive growth with a new cash bonanza
Millions of people have never visited a cash back site; know what one is or have ever heard of quidco or greasy palm (just 2 of the sites). However many internet savy shoppers are buying everything they can from leading retailers via these cash back sites. In return these smart shoppers are getting real cash back for just buying the goods and services that they would have bought anyway from Tesco or John Lewis or whoever.
So how do these sites work?
Cash back sites take advantage of online retailers (merchants)affiliate programmes, whereby these merchants offer referring sites a % commission on sales via their sites.
Instead of pocketing the commission the cashback site hold on to some of the commission but gives the rest back to the canny shopper as cash.
Shoppers join these cash back sites (usually for a small annual fee)and then shop 'til they drop via the site.
The cash back site makes money from the joining fee, the % commission it retains from the merchant and from the actual cashback itself. Although shoppers do get cash back, it tends to remain in an online account, growing and growing - so until the shopper takes the funds from this account the cash back is actually cash still with the cash back site earning money!
So will this cash bonanza continue?
In short yes, however, it depends on increasing awareness and the strength of online merchants affiliate programmes. In terms of awareness, word of mouth is spreading and spreading. The current offerings are pretty irresistable so all is set for explosive growth. Also as the market matures and concentration on 1 or 2 players happens there will be increased paid for communication too.
So it looks like we are all set for a cash bonanza. As it stands there are plenty of online retailers using these sites, although there are some notable exceptions, such as the AA. Here are some of the masses of cash back sites out there is May 2008:
www.quidco.com
www.e-cashrewards.com
www.ecashback.co.uk
www.cashback-rewards.co.uk
www.cashbackbay.com
www.greasypalm.co.uk
Cash back from purchases at www.mygard.com is available at many of these sites incluidng www.quidco.com
