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Cashback Sites The New Black (Or Silver or....)

Anyone know what's the new black? A few years ago silver and lilac were the new black. Perhaps black has regained control?!

Anyhow, a thread on the A4U Forum has prompted this seminar.
 
I've just had Affiliate Future's newsletter plop into my inbox and they have details for a new merchant.

UK Online Market at http://www.ukonlinemarket.co.uk/ is a cashback site that has an affiliate program.

Affiliates recruiting affiliates!

There are hundreds of cashback sites. A search of the mighty Google revealed these gems in the top 20:

  1. Free Fivers
  2. Quidco
  3. Greasy Palm
  4. Cash Back To You
  5. Rpoints
  6. Internet Cashback
  7. Trolley Cash
  8. eDeals UK
  9. Mrs Cashback
Even the Beeb has highlighted that cashback sites are available.

So is this the new thing. Should we all be rushing out to build/buy a cashback site (or script) and set up our own lucrative site?

Probably not is my advice.

Why?

Remember "free iPod" style sites where if you referred umpteen friends and complete an offer, you could get a free iPod. Everyone jumped on the bandwagon and for a while, they were popular. The web was littered with such sites.

But where are they now? Sure some still exist but the vast majority just don't work.

Remember "million dollar pixel" style sites? Again, you couldn't move around the web without bashing into a pixel site. Variations have come and gone but nothing has stuck (apart from the original and that's only because it was the first to do it).

Cashback sites will undoubtedly follow suit. Perhaps they will have a longer life span but with merchants so keen to keep tabs on how their brand is being promoted, immanent restrictions seem likely. After all, *some* merchants don't want their name banded round by grubby affiliates.

Such sites already have limitations such as reduced percentages or higher quantity boundaries for leads.

Having said all that, if they are here to stay, there will be fierce competition amongst affiliates for a space in this already over-crowded market. Big names such as Sainsburys want in on the action and when tied to the Nectar Card promotion, it has some weight to throw about.

So on one hand, they are a fad. On another, they can mean big business (for big business?). If I had a third hand, I would also suggest a gap in the market for an affiliate network that is 100% focused on cashback sites. Maybe this is not needed - maybe networks can offer facilities to help and encourage cashback site owners as opposed to trying to hinder them.

All I can say is I'm quite happy with my sites. I don't feel compelled to build a cashback site.

Yet.

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Comments3 Comments

Comments are manually approved and hence can a while to appear. Questions, informative posts, and feedback comments are gladly accepted. Spam is deleted. Spam-type comments have their links removed (Comment Policy)

David

@Stuart - Thanks for your comment (not displayed) promoting a particular cashback website. As it is not factually relevant, I have not published it. Had this been a post listing all the cashback sites in all the world, I would have published your comment. But alas, it is not and alas, I have not.

Written on Monday 22 October 2007 at 17:26:08 GMT (Permalink)

Gavin Mawston

I am sure Cashback sites will live but their numbersshall be limited to the amount of faith people have in them.

I for one what a cashback site to incorporate into my own website for my members to give them a reward for doing something for me. However reading your article does make me wonder if I should pursue this any further but I guess there is only one way to find out and that is to go ahead. If I fail it will only be one mistake of many but I am able to write it off as a developement cost.

Whilst on the subject of failure the current market is going to be tough for merchants and customers. Merchants need to sell and customers want cheap. What better way to get them both to interact than by going via a cashback site.

Written on Sunday 21 September 2008 at 21:21:58 GMT (Permalink)

Matt Yabsley

There is a saying in sales (ever since i remember) Anyone can give something away. Cashback sites are no different than the age old salesman that can't sell doing what they can do sell anything to someone.

Written on Friday 26 September 2008 at 21:54:35 GMT (Permalink)