When hearing the words “cashback schemes,” the first thing that pops up to mind is the idea of spending, then, eventually, recover the money through a reward or a discount. Well, you’re right on the mark, except for a tiny missing detail.
What you’ll be spending isn’t similar to gambling, like betting on a lottery draw or a sweepstake. With gambling, you can just forget about your money because the chance of winning is very slim. On the other hand, through cashback, the rewards are so common that more and more people are using them when doing online shopping.
The Source of the Cashback
You may be wondering where the money that’ll be given as a reward is coming from. It isn’t as if there’s some sort of investment going on, and you get a dividend or something.
The truth is that it all comes from the commission the website is earning when you purchase an item from its partner merchants. When you use the site as an extra process in purchasing from an outlet store of choice, you become entitled to a share in that commission. The commission will depend on the rate the website has indicated in its promotion.
Why Online Shoppers Prefer Cashback Websites?
You cannot blame people from going gaga over these online shopping crazes. In a world where life almost revolves around anything online, getting rewards – even if it’s just a trifling sum – would always be better than nothing.
Apart from the apparent benefits of cashback websites, what makes them worthy of your time and effort? Consider the following advantages:
- The More You Shop, The More The Reward
Can you believe that the top sites support over 5000 merchants (and counting)? From groceries, apparel, bags, accessories, to travel tickets, there’s almost nothing that can’t be availed from these cashback websites. This is particularly beneficial for heavy online shoppers who rarely go to a physical store and heavily rely on shopping websites for all their needs.
As mentioned, cashback websites vary in terms of the rate they can give shoppers as rebates. It depends on the merchants they are tied up with, but rates typically range from 1% up to 15%.
- Beginner’s Rewards
Some cashback websites’ way of luring new shoppers into trying them out is to offer an amount higher than the usual rebates. Others can go as far as returning the whole amount of your very first purchase.
But, be observant and always compare prices with other websites. One may offer 20% cashback on your initial purchase from the site, but the item may cost 15% cheaper on another, which makes the net cashback only 5% in reality. This may not even include the other website’s own rebate, which may be higher than 5%.
- Earn Through Referrals
Even if you’re not a heavy shopper, you can still earn through referral rewards. This is by encouraging family members, relatives, and friends to shop online using these cashback websites.
Whenever these recruits of yours sign up and make their purchases, you can also earn.
- Get the Best Deals
With the sudden influx of cashback websites nowadays, the competition has made tremendous advantages for online shoppers. These sites tend to outdo each other to persuade shoppers into purchasing from their websites.
Part of the competition is to match or even lower the price or increase the cashback rate. So, as a shopper, you only need to be patient in researching and comparing these offers to get the best deal.
- Earn Cashback Offline
Cashback websites have extended their reach, not just concentrating on online customers, but also targeting those who still prefer shopping the traditional way.
All the customers have to do is to download the website’s application, register, and shop using cards.
- Receive Passive Income
When you shop online, you release payment and get the items shipped to you. You lose something (money), and you get something (product or service) in return.
With cashback websites, other than doing your usual shopping habit, you earn passive income without actually working for it. You can get these rewards through checks, bank transfers, or Paypal.
- Sometimes, All It Takes is Signing Up
If you really have no intention of doing regular shopping, even just doing the registration is enough to merit a reward. Some websites also have ways to give back to people who take time answering surveys and those who inquire or ask for quote prices.
So cashback websites can also be ideal for people who are not expected to do heavy spending on online shopping, like students.
Regardless of how tempting a deal is, you should always make sure if it’s worth spending for. You have to remember that these cashback schemes work like a sale at the mall – you’ll be tempted to purchase something even if you don’t need it.
So, the real secret to success with these deals is getting the products and services that you really need and get rewarded for it. Cashback websites are legit, no doubt. However, it’s your needs and wants that need to be in check.