Microsoft Live Search cashback Program
Thanks to Jonathan at My Money Blog for the heads up on Microsoft's Live Search cashback promotions, I got a one-year subscription to Financial Times newspaper through Magazine.com at a really good price. The regular subscription price at ft.com is $298. Magazine.com discounted it by 50% to $149. Now I'm getting another 70% off to $45. What a deal! Thank you Microsoft!
Microsoft has done a very good job for its cashback program. Rebate sites like FatWallet and eBates have been in business for a long time by Internet standard. These sites are paid when you make a purchase through a special link to their affiliated merchants. The rebate sites then share with the users a part of the affiliate payments they receive from the merchants. Microsoft's program operates under a similar model, but Microsoft has gone a few steps beyond what other rebate sites have done.
1. Immediate rebate confirmation . After you make a purchase, the rebate amount is confirmed immediately, within seconds or minutes. This may depend on how the merchant reports the sale to Microsoft but the technology is there if the merchant chooses to use it. I was able to see my rebate in my Live Search cashback account right away.
When I used FatWallet, the cashback eligibility is usually confirmed only after a few days. In several occasions I used the affiliate link but I didn't get my rebate at all. Instant feedback increases the user's confidence in the system. If I shop at my favorite online stores Newegg or Zappos again, I will definitely use Microsoft's links instead of FatWallet's.
2. Extra Cashback . Because Microsoft is interested in increasing its market share in Internet search, it's able to promote its search with additional cashback out of its own pocket, beyond what the merchants pay them. Microsoft can afford to run the cashback program at a loss because it accrues other benefits when people use its search more and use Google and Yahoo! less. During the current back-to-school Live Search cashback promotion, the cashback from Zappos is 18% on Live Search, only 6% on both FatWallet and eBates. The cashback from Newegg is 5.5% on Live Search, only 1% on both FatWallet and eBates. Typically rebate sites share the affiliate payments with the users 50/50. Microsoft not only gave up 100% of the affiliate payments from the merchants but it also put additional cashback on the table with its own money. There's no way the other rebate sites can match that.
I love it when there is competition. Will Google match or beat what Microsoft does in its Live Search cashback program? Let the cashback war begin!
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Comments
3 Comments on Microsoft Live Search cashback Program
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arvind on August 17, 2008 |
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Scott @ The Passive Dad on August 19, 2008 |
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Thanks for the info. This will be useful.
But when I tried searches for a couple of things I want to buy, it looks like the merchants are 15-20% higher than Amazon..offsetting the cashback.
I first heard of the Live cashback offer for some products on ebay, but have been unable to find these 20-30% discounts. I don't know if Microsoft changes the discount offers daily, or if it's random for savings at ebay. Have you heard of any changes to the Cashback program?
Live cashback for eBay changes from time to time. To see the current offer, first disable ad filter in your browser if you are using one, then search for something, say Nitendo Wii, on live.com. You will see the offer in the sponsored ads section on the top. Click on the eBay offer. Then you have 60 minutes to complete your purchase. It has to be a Buy It Now item and you have to pay by PayPal. When I did it a minute ago, I saw 15% off. I'm not sure when it will end or whether there will be a bigger discount in the future.
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