An introduction to cashback sites

The fight for precedence in the modern retail markets has long been a fierce one. Retailers have flourished in the sense that society has a more disposable income than it once did and credit is available more freely, but with the rise in consumerism, so too has the marketplace exploded and competition swelled. The retailer’s quest for new and loyal customers has become a challenging industry in itself and in order to stay one step ahead, marketing techniques have had to evolve just to retain profits.

Where the 1980’s introduced the concept of rewarding customers with programs such as Air-Miles and low interest credit cards, the increase in competition led to more personal rewards for customers, adopting a variety of formats like loyalty cards, cash back, rewards cards and club cards. But with the arrival of the new millennium and the rise of home internet connections, the shopping possibilities for customers have exploded. Cheaper prices, the freedom to make comparisons quickly and with the convenience of not having to leave your own home, are just a few reasons as to why the crowds are being lured from the high street. It is now estimated that almost 1 in 10 retail purchases are now made over the internet and so it comes as no surprise that a new breed of websites are making the shopping process that little bit easier.

Introducing cashback sites
Cash back sites are specialist internet programs that essentially introduce the consumer to the most competitive retailers via affiliate links on the cash back pages. It is important to understand that when a person ‘clicks’ on a link that leads them to an another website, that website can very easily trace where that ‘click’ came from. I.e. they can track how well their advertisers are working for them by monitoring how many people are introduced to their business from that particular site. Cash back websites receive commission for directing customers to the retailers’ sites but, essentially, they then offer a high percentage of this commission back to the customer.

Cash back websites have found a way to capitalize on the modern standards and expectations of the consumer but have taken reward schemes to the next level by promising to make their members’ money go that little bit further. The sites are a great money saving concept made possible via internet marketing and it is a successful method of advertising as they only pay up when they get the sale; but remember that many of the best bargains are available for a limited period only so it is advisable to stay on top of them and make visiting the cash back website a priority place for shopping.

It would be natural to feel suspicious of any website that not only offered high discounts, but also offered a financial incentive just for signing up, but the discounts on products that are available should speak volumes alone. It would of course be advisable for anyone to research a little before committing and consider the long term benefits that having a little insight can achieve.

Cashback = real money = real savings
The possible savings cover all kinds of products from everyday household items such as; mobile phones, DVD’s and books, to those products that would require a certain knowledge or be more time consuming if bought on the high street such as travel, Broadband and motoring; but the most profitable deals usually involve finance related products such as insurance, loans and mortgages, where significant amounts of cash back can be garnered from a single purchase. In keeping with the earliest marketing features of pre-internet products, cash back sites can also offer great bonuses for those customers who introduce family and friends to the websites. Customers can therefore benefit from gaining more money for their cash back whilst the website saves on advertising. Up to an extra 5% can be gained every time the customer spends simply by making purchases on a cash back credit card though naturally the benefits will only really apply to those who clear their balance by the statement deadline.

Some cash back sites can place a threshold on when earnings can be withdrawn from accounts though this is primarily a loyalty-driving feature, encouraging customers to return on a regular basis.

The rising number of cash back sites can of course bring about the confusion and sense of being overwhelmed that they originally intended to help overcome; and there are several other factors to be considered in order to give a fair introduction to these new programs.

Customers should be wary of paying a cash fee upfront and some sites do charge an annual subscription which is taken out of the money the customer has earned, so check for the small print to see if these factors apply and consider the better long-term offers. You should never have to pay in order to receive money and although rare, the internet will always be vulnerable to scams, so beware! The safest action would be to avoid spending money earned from cash back until it is in your account.

Getting the cashback cash
Once earnings have reached a set amount, the customer can request a direct payment on the cash back website. Payment is usually made via BACS (bank transfer) though some sites will also offer gift vouchers or coupons that are obtained at a trade price saving the cash back website money from issuing online vouchers. The vouchers are sent via e-mail and issue a reference which can be entered onto certain online stores to redeem from the final cost of their purchases.

Though still a relatively new concept to the internet, cash back websites certainly represent the most contemporary way of shopping in an era that has come to rely so heavily on the World Wide Web. Credit should be acknowledged to these sites for offering financial incentives to customers who would otherwise be vulnerable to the competitive prices of an unfaithful economy. If time, effort and money can be saved with a guaranteed annual return on expense then surely serious consideration should be given to making these websites a part of our routine.

Filed under: Cashback Guides