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How Do Cashback Websites Work

Sep 2, 2007
Cashback websites are a type of Reward websites that pay its members a percentage of money earned when they buy goods and services by clicking their partner links.

Further these cashback sites allure their customers by offering bonus or cash to refer others to the site. This multiplies the benefit both to the cashback providing website and the customer as it helps the member to build up their cashback balance and helps the cashback website to be promoted by registering new members without having to worry about spending money on advertising.

The number of Cashback Websites has increased due to the online affiliate marketing companies which make it relatively easy to develop this kind of website.

Only registered customers can earn cashback money on variety of online shopping. These can range from consumer electronics to finance products and furniture. The most cashback making deals include financial services such as insurance, loans and mortgages where we can say fairly large amounts of cashback can be earned from a single purchase. Other merchants such as lifestyle, beauty, entertainment also provide significant amount of cashback rewards due to their huge profit margins.

The cashback website receives a commission from the merchant and when the purchase is confirmed by the affiliate company; they share this payment with the customer who made the shopping through their website. This means that the cashback giving website earns profit on the sale and the customer gets a little amount of initial expenditure back.

Cashback websites have their payment withdrawal policies. They place a minimum threshold on their withdrawal amount earnings. This means a customer has to earn the cashback more than the minimum cashback balance threshold, which makes it necessary for a customer to return to the same website to cross the threshold target. Cashback websites are also an important means to get advertised through them rather customers visit their site directly.

When the cashback account balance reaches the set amount, customer can request a payment on the cashback website. Generally these cashback websites pay view BACS (bank transfer) or gift vouchers.

The gift vouchers are usually obtained at a trade price, and so the cashback website saves money by paying people in online gift vouchers. These vouchers are sent using e-mail to the customers, and consist of a code of random numbers and letters, which when entered on certain online shopping stores can be used to get discount money from the final cost of their order.
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