How do cashback sites like Topcashback and Quidco work?
For people new to the concept of cashback websites, it can be a little hard to understnad what they are, and how they work. We've put this little guide together to hopefully make it a little easier.
Before we go in to how they work, we'll give you a quick step by step guide to getting cashback...
- Signup to a Cashback Website, the most popular ones are Topcashback and Quidco but there are many other smaller ones too. If you sign up through us, you'll get additional signup bonuses! (do it now!)
- Search and compare products to buy online just as you normally would, for example, you might do a Google product search, or look on Kelkoo, for a CD, book, Furniture, anything.
- Choose the merchant you would like to purchase this item from, for example, you've done a search for Widgets and deciced to but then from WidgetsRus
- Now the clever bit, instead of going direct to widgetsRus, visit your cashback site first, eg. Topcashback, and search the site of several thousand Merchants for 'widgetsRus'
- If you're in luck, you'll find the amount they will give you (usually a percentage) cashback on whatever you spend at widgetsRus. Click on their link, and it takes you direct to widgetsRus, where you complete your purchase.
- Once the purchase is complete (usually within 24 hours), you will get an email from the cashback website saying they successfully tracked my purchase.
- Usually within 1-3 months the money arrives in your cashback account which you can able to withdraw at any time. simple as that!
Where do Cashback website get the money from?
Most websites on the internet that have banner ads, when you click on a banner advert, that website will receive some commission for sending you there, based on the amount you spend. The difference with cashback websites is that they give the commission they earn back to you. Isn't that nice!
How do Cashback websites make any money?
So, I guess you're asking whats in it for the cashback websites? Well, Quidco for example, keeps the first £5 of whastever you earn each year. This isn't too bad though, considering you can literally earn thousands of pound each year! Topcashback earn their money differently, their primary income is through additional advertising on the website with paid per click affilite links, much like every other website on the world wide web. Other cashback sites make money by taking some of the percentage out of each transcation. So they may give you 5% for buying something from widgetsRus, but actually earn 10% commission from your sale.
All good so far, but what about these 'No Brainers'?
'No Brainers', or 'cashback loopholes' are where you get more cashback than you spent to get it. These usually appear with merchants that have some form of subscription service. They entice you to subscibe to their service/product with high cashback amounts, in the hope you simply love it, or forget to unsubscribe! The full list of NoBrainers can be found here
So we hope this clears it all up. Happy Cashbacking!