I’m sure you’ve seen the television commercials talking about ebates.com and all of the money their members are making by shopping through ebates.com. In this ebates.com review, I’ll show you how it works, how they can afford to pay you for shopping with them and how you can do exactly what they are doing.
How Does Ebates Work?
Ebates.com is affiliated with about 1,800 different stores. When you shop with ebates.com, you are not actually buying from ebates but you will accumulate cash back rewards that you wouldn’t otherwise earn if you shopped directly with their affiliated stores.
Once ebates.com confirms your purchase with their affiliates, a certain percentage of your total purchase is credited to your account and is paid quarterly via check or you can have it deposited into your PayPal account. Percentages vary depending on the individual affiliate programs.
The average cash back reward is around the 4% – 6% range but can be as high as 25%. So, if you spend $1,000 and receive 6% cash back, that’s $60. You can probably see that you would need to spend quite a bit of money to earn back the hundreds of dollars that they show their members receiving in their commercials.
How Does Ebates.com Make Their Money?
I’m sure it has occurred to you that ebates must somehow be making money too. Sure they do but, they do seem to pay the “lions share” to their customers only keeping a small percentage for themselves. What they lack in profit margin they make up for in volume.
For example, you can see below that ebates.com offers 6% cash back on purchases at overstock.com.
Overstock.com offers an affiliate program which means that just about anyone with a legitimate website can offer overstock.com products on their website and earn a 7% commission. Using this example you, as the consumer, would earn 6% while ebates.com would receive 7%. I’d say that’s pretty generous.
Make Money Like Ebates.com
In a nutshell, ebates.com are affiliate marketers. I will admit that it would require a TON of work and a large team of people to do affiliate marketing on this scale. However, you don’t have to be exactly like ebates to make money doing what they do.
I know people who make a full time income through affiliate marketing without a team of employee’s or a large advertising budget. There are affiliate programs for just about everything you can imagine and you can learn how to build a website and market those products without spending any money on advertising!