Save Money with Cashback Websites

Cash Back Websites - Can I Really Save Money with Cash Back?
From: Alex, Will, Mark and Natasha
The UK Make Money Programs Team

Date: 9th June 2009

Cashback websites are great if you like to shop online. Designed with the motto of rewarding you with cash back savings whenever you buy online, thousands of businesses have set up affiliations with these types of websites.

And the savings you could acquire from joining the likes of Topcashback, Cashbackkings or Quidco are quite impressive.

All 100% payout models, you can receive up to 5% of the purchase value and make instant savings on your investments.

Mmm okay, but how does it work?

Whilst most Cash Back websites are free to join, some will require an annual slice of your cash back profits. For this reason we recommend that you only join Cash Back websites which offer free memberships and also ones that have got a large business base for you to choose from when shopping.

The process behind Cashback websites is fairly simple. Once you have set up a free account with one, you can log-on, search for a product you are interested in, see which businesses offer the best deals and buy. Easy.

And why is it so easier? Because whilst you are doing all this, whether it is buying an electrical appliance from Curry’s or setting up an account with HSBC, your Cashback site will be tracking your transaction and will be preparing your cash back bonus.

Surely, that is not profitable for them

You would think that, but Cash Back sites make their profits from taking advantage of the way commercial payments are done between websites. They simply list product providers for you to browse through, and when you come to click on one of these links, they get paid for sending you there.

Yet the real trick comes from their commission scheme. Whilst some will state they are giving you the full commission back, behind the scenes they have made an arrangement with the retailer giving them an additional slice.

Either way though, you are saving money!

How can it benefit me?

Receiving 4% of a products cost at Curry’s or 7% through Tesco Direct may not feel a lot when you are making purchases of £100 – it is only £4-£7 in savings – do this on every online purchase and you could potentially save thousands of pounds a year.

The key to utilising these sites effectively is to make sure you obey the following rules:

• Ensure you invest in the right product – make sure you check through all your possible product options first before you buy. Just because Robo Electricals is offering you 5% cashback on a £400 washing machine, doesn’t mean it is the best deal for you. By spending a few minutes researching you could find the same washing machine priced at £300 somewhere else.

• Look for Cashback – one useful tip is to first see if cash back is available and then search through a number of Cash Back sites to see who offers the best cash back deals. That a way you can receive a top product and the best savings.

PLEASE NOTE: Never count the cash back until it is back in your account. Things can go wrong if the Cash Back site does not properly track it or if the advertiser turns around and refuses to pay.

How can I use Cashback Sites to my advantage

Whilst it is always good to register yourself with a number of Cashback sites, it is still important when using these providers to make sure you understand all their rules.

Most Cashback sites will only payout when you have reached a certain threshold, so choosing to make only small purchases in order to get 5% cash back might not always work in your favour. You could in fact end up not getting paid at all.

Other useful tips include:

1. Referring a friend – almost all Cash Back sites will pay you a bonus for getting a friend to sign up to their website. Some will even give you a bonus whenever your friend earns cash back.
2. Clicks – notably one of the fiddliest ways to make extra cash, when you click on shopbots you could earn 2p to 4p per click. Now do this every day over numerous Cash Back sites, and you could earn at least £20 a month.
3. Paid Surveys – use this tip and you don’t ever have to spend a penny through their sites at all. Instead by signing up to online services via their website, you can offer yourself the chance to earn money from filling out surveys from companies. And luckily there are hundreds of these types of sites for you to choose from.

The most important point to remember is that every Cash Back site will have a different relationship with their retailer, meaning your percentage of commission will vary depending on their arrangement.

Either way though, Cash Back sites are a great way to save and even earn you money.

Read our reviews on the Top Make Money Programs Online