Who Makes Money From Online Coupon Codes?
Who Makes Money From Online Coupon Codes?
Promo code sites have become big business, with digital coupons surpassing paper for the first time in 2020. Major deal sites make millions based almost entirely on commissions from each sale. They don’t sell shopper data and it’s not a scam. In fact, big companies like PayPal and Rakuten are buying up deal sites for billions. From Honey to Slickdeals, Rakuten Rewards to Brad’s Deals, CNBC asked the major sites what it takes to find deals that are real and why the business model works.
With the huge boost in online shopping during the pandemic, deal-finding sites have become a major business. In 2020, Inmar Intelligence found that digital coupons surpassed printed coupons for the first time ever.
Also in recent years, behemoths like Goldman Sachs and PayPal have paid hundreds of millions – or even billions – for sites like Slickdeals and Honey that automatically curate coupon codes or offer shoppers cash back for making purchases through their sites. Even banks like Capital One are getting into the game.
The business model is not a scam. All major deal sites say they don’t sell shopper data. Instead, each sale generates a commission for the deal site and for the middleman known as the affiliate marketer – a company that connects the vast world of retailers with deal sites.
With nearly 2,000 businesses in the daily deal site space, it’s a crowded industry filled with legitimate businesses as well as plenty of sites that are riddled with ads and expired coupon codes. That’s because regardless of whether a coupon code works, the site that provided the code will get commission for that sale.
When the deals are legitimate, however, it can mean big money for shoppers, retailers, and the deal sites. From Honey to Slickdeals, Rakuten Rewards to Brad’s Deals, CNBC asked the major deal sites, and shoppers, what it takes to find deals that are real and why the business model works.
Watch the video to learn how saving consumers’ money makes big bucks for companies in the vast world of online deal hunting.
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How Coupon Code Sites Make Millions
Honey is Great
1% target?? REI gives 10%
Deals are good
Rakuten are scammers, they will close your account without reason and their customer service is very rude
Rakuten is straight up cheeks. They never give me my money back.
Where do I start
gimmick AMERICA GLORIFY CONSUMERISM
I tried finding a coupon the other to buy a 1-5 yr VPN provider. It took me too long but i eventually got $10 off than i search a bit more and find one for $12. I was happy but i wasted a lot more time than i though i would’ve/should’ve.
since i know the commision is now going to BIG DOGS i will no longer use the listed link
Best ad video ever.
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So this is that famous "innovation" capitalism is known for…
Back up and look at the reality of the situation: People are willingly consuming advertising so that they can spend more money.
You can save a lot more than a few % by just not buying that thing you don’t need in the first place.
My mother has spent *thousands* on crappy Groupons which she then justifies buying.
penny wise pound foolish is the targeted audience from these businesses
eBates was such a better name than Rakuten
Since I’ve had honey for around three years, I think I’ve saved less than $5 total.
Rerailmenot hadn’t had a working coupon in the last decade
This is why everyone is in debt. Put a $1,000 purchase on a 24% interest credit card to get 8% back
Jesus loves you all I pray that you all find Jesus and repent before it’s too late AMEN. ❤️🙌🙌❤️❤️❤️
I’ve tried using coupons on a lot of sites,, they almost always fail so I don’t bother anymore,,, 99% of the time that code has expired or is no longer valid…these sites are just getting ad revenue and clicks for there failed coupons
Coupons = when customers get their money back, retailers previously added on top of price 🤡🙄
Except Rakuten does have high end brands like saks, Bergdorf and many brands they sell.
A.I. ‘personalization’ just means they have better odds at hooking you in with a bait.
Also, the algorithms are flawed at best.
You may no longer be interested in certain category of items once you’ve acquired it. But the algorithm thinks you’ll be buying lawn mawrs foerever. 🤣
Once I was searching for low, low priced used cars for my kid.
Now, I get ads in Spanish!
I don’t speak spanish. I never typed anything in spanish.
Go figure.
wow i’m new to these type of things and just relized their real just amazing….
I downloaded honey on my computer not believing it will give me cash back but wanted to give it a shot, and I was so surprised it actually gave me cash back!! This is amazing for people like me who only do Online shopping.
Some people in the comments are saying “coupons are made to make you spend more” that’s not true in all cases. I buy what I want to buy only and it gives me money back.
So far it’s given me $80 total
this is such a comprehensive video with interviews with parties across the whole vertical. I learn so much from these videos
Good
Appreciate the detailed breakdown! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?
Sometimes I wish I was into couponing but that also costs time
Saving over $8000 a year on spending means she spent way more then that amount. That’s a lot of junk buying for a family. She needs some financial education.
Why does this feel like an advertisement for all the mentioned companies?
Now we see that this kind of business is very profitable, I am a web developer and I’ve already built an automated coupon site to sell it, if anyone interested to know more info please let me know.
Its very nice video and beautiful
Holy dumb haircut, Batman
Opportunity cost
🙏💐💐💐💐💐💐💐🙏
I rather spend the time making overtime pay at work, then searching for coupons.
Yeah, the big companies want regulations because it will stifle competition. Right now the coupon industry is going great, but if you introduce more regulations, it will lower competition and ultimately force people to have fewer choices
So basically the shops raise the prices, some people profit from it (people who heavily use these cashback apps) while 90% of the customers do not (they pay a lot more in the long run).
Coupons are rare in Europe. Here you get a loyalty card and most deals are automatic. Sometimes there are coupons that you need to activate to use via the app.
Did I just watch a 17 min ad for Brads Deal? I’ve never heard of them.
The secret of your future is hidden in your daily routine. Successful people do daily what the unsuccessful only do occasionally
Paid for by Brad’s Deals
Wasn’t impressed with honey. Microsoft edge browser has a built-in feature that’s better
If a coupon makes you buy something, then you are wasting money. If you needed something and a coupon happens to exist, then you legit saved some cash. End of story.
Love these!!!!
Hiit 0:07
extremely insightful
17:06 Saddest thing I have ever seen
Think your also getting free shipping? Nope! Its included in the inflated price!