How Does Ebates Make Money?

A common question potential users have is “How does Ebates make money?” This is a natural thing to wonder since they are giving you cash back for shopping online. Where exactly are they getting the money to be able to give you cash back?

The answer is actually quite simple. They get a commission from the store where you made your purchase, and they share a portion of it with you.

Here’s how it works. Stores award commissions to websites who refer customers to them. This is a very common practice online and almost all major retailers have affiliate programs in place to award commissions. They track referrals through affiliate links so they know who sent the customer to them and where to send the commission.

This is where the Ebates tracking link comes in. That link is actually an affiliate link that tells the retailer that they sent you to the site. Each store will award a different percentage of the sale as a commission. Ebates then shares part of that commission with you in the form of cash back.

You can check out how much cash back you can get at different stores by signing up.  It’s free and you even get a $5 bonus just for joining.  Just click the form below to sign up:

How Does Ebates Make Money

 

For example, let’s say store X gives out a 10% commission to Ebates any time they send over a customer. Ebates gives you 5% cash back to shop at that store, so you click the tracking link and spend $100 at store X. The store then sends $10 to Ebates in commission, and they share half of it with you and send you $5.

It is kind of like a rebate, but not entirely. There are no forms to fill out, and it all happens automatically. All you have to do is click on the store’s link at Ebates so the store knows that Ebates sent you. It is so simple and completely legitimate. There is nothing fishy going on whatsoever.

You might be wondering why stores would want to do this in the first place. It is actually very beneficial to the stores because they get a lot more customers this way. If customers know they can save a little bit more by shopping at one store over another, they are going to continue to do their shopping there.

A lot of stores online get affiliate commission for sending traffic to retailers, but most of them keep every penny. You probably don’t even realize that you clicked on an affiliate link in the first place. It doesn’t affect you either way, but you might as well take advantage of Ebates and get a piece of the pie.

Another great thing about Ebates is that they post all the current coupons at each store so you can layer on the savings. You are free to use coupon codes in addition to getting cash back, so don’t forget to use them!

You can actually save a ton of money by combining coupons with cash back. I just saved a bunch of money making a photo book on Snapfish.com. The photo book was originally $29.99, and I found a coupon code on Ebates for 50% off all photo books. On top of that, they offered 20% cash back on all purchases at Snapfish. I have to admit I was pretty proud of how much I saved on that purchase.

Got a little off track there… I just get excited about saving money!  Anyway, I hope this answered your question, “How does Ebates make money?” It is really simple and you shouldn’t question a good thing too much!

You can check it out for yourself by signing up to join Ebates. Joing is completely free and it only takes a minute. You even get a $5 cash bonus just for signing up. You can sign up by clicking the form below:

How Does Ebates Make Money

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Comments

  1. sarah says:

    how do you get the money that they are giving you back. i dont really understand how you get the cash back. do they just take it off your total purchase?

    • admin says:

      The store you made the purchase at gives Ebates a commission based on the amount of your purchase. They send the commission payment to Ebates, and Ebates shares part of it with you.

  2. Paul says:

    It is quite simple, they take the offers from CJ.com and Linkshare.com, and they get a referral fee they split 50-50 with the customer.

  3. tony howe says:

    I shopped online with JC Penney and spent $412.00… how much will I receive in cash back?

    • admin says:

      It depends on how much cash back Ebates offers for JC Penney. Right now they are offering 6% cash back, but that is subject to change. So that would come out to $24.72, assuming they offered 6% cash back when you made the purchase.

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