Have you ever wondered how your favorite coupon website stays on top every single day while giving out ideas to get freebies and save money? From your perspective, they are the ones helping you, but behind the camera, they are running a smart business! They donāt sell themselves like everyone else does with those long, elaborative paragraphs, but they make themselves sound like a āneedā that you must have! If you can decode how these coupon websites make money, it might be a win-win situation for you. So, are you ready to decode the secrets to how these coupon websites actually make money? Letās go!
What Are Coupon Websites?
Coupon websites are websites that can be used online to compile promo codes, discount links, cashback offers, and sales alerts of thousands of brands and stores. There are huge brands here, such as RetailMeNot, Honey, Slickdeals, and even niche companies such as Student Beans or Rakuten.
Their primary target is to make consumers save money to purchase things they are already going to purchase.
What you need to know is how these can benefit you, so here you go!
1. Affiliate Marketing (The # 1 Revenue Stream)
It is the major income-making approach of couponing sites. Their website is only affiliated with a retailer. They obtain a commission when you click on a deal or coupon and make a purchase.
It is known as affiliate marketing- and it is very potent.
- To give an example, when you go to a coupon site and check out a 20 percent discount on Nike shoes, you are redirected to a unique affiliate link.
- When you purchase an item on the Nike site, the coupon site will receive a percentage of sales, which is normally between 5 and 20 percent.
Why It Is Important to You:
Nothing is being added to the bill; it is the retailer who pays the coupon site. Yet every time you click and buy, their revenue gets a boost.
2. Display Advertising
When you go to the coupon sites, you are likely to have seen these banners, pop-ups, or land on sidebars. These are the paid placements, and they are served by Google AdSense, Mediavine, or Ezoic.
They make money whenever anyone views or clicks on such ads (referred to as CPM and CPC advertising).
- The most popular coupon sites make thousands of dollars per month selling ads.
- They can also carry advertisements in the form of banners of brands that are seeking to advertise some special sales.
Why It is Important to You:
When a coupon site has too many adverts on it, it might make it slow or even distract you. Speed can be enhanced with Ad blockers, but they will also deprive the websites you like of revenue.
3. Leads Generation and Email Marketing
Websites offering coupons will regularly ask you to register for the daily deals or newsletter. Why?
Due to the fact that email subscribers = long-term value.
They harvest your email to do user segmentation interests (ex, tech vs fashion) and then send targeted offers to them. Those emails usually have affiliate links, which generate extra commissions.
Others sell anonymized data to advertisers or perform targeted promotions with it as well.
Why does it matter to you:
You have the privilege to enjoy special offers; however, you turn into their tool into monetization. Be on the lookout for spammy techniques and subscribe to the sites you have confidence in.
4. Cashback Offers
There are websites such as Rakuten or TopCashback where you will get your money back once you have purchased something. However, they are not liquidating their money.
And this is how it works:
- You will buy an item, and a shop will pay the site a commission.
- The site awards you a part of such funds in the form of cashback.
- The rest they retain as profit.
It is a win-win. You save and they earn.
Why it should matter to you:
It is a fair method of being compensated to spend, but just ensure it is in the fine print of the deal that some forms of cashback payment have terms or a time lag.
5. Sponsored listing and Promotion
Sponsored listing and promotion may apply where a business can sponsor their listing in the directory, and they may also sponsor the promotion, so that they will be promoted by putting some adverts up in the directory.
The companies that own brands have a tendency to pay the coupon sites to promote their offers. These may be:
- Homepage features
- Placements in Editors. The number of appearances in what is known as Editor’s Pick changes with time.
- Season promotions (such as Black Friday)
This natural recognition gives a competitive advantage to brands in competitive niches.
Why Does It Matter to You:
Not all deals are portrayed as the best ones. Others are paid advertising. Thus, choose deals in different locations and do not click based on them.
Conclusion
Now you know how your āhelpingā websites actually make money. By using affiliate commissions, ads, cashback incentives, and promotions sponsored by your clicks and purchases.
But why should it be of any importance? Knowing the model will assist you in being more economical when you shop, to get a better deal, and perhaps even to start your own side hustle using a coupon blog.
So, the next time you enter a promo code, keep in mind you are a participant in a billion-dollar industry that does not stop at doing anything that would make people save.
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