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.
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
How Coupon Code Sites Make Millions
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.
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
How Coupon Code Sites Make Millions
){kind=link}
Why is there no mention of the blog sites that generated the interest for the products sold in the first place? These folks are doing all the homework and the coupon sites swoop in at the last moment and steal the commission earned by the blogger. What happens when there is no place to go for insights into the usage and real-life usage of the products being sold. The goose that lays the golden egg is being consumed by Rakuten and Honey and all the like. Coupons are important. But the commissions should at least be shared. The coupon sites didn't make the opportunity on their own. Share it.
This seems like they are fueling shopping addictions and saying that's great business model. And the old adage "if it's free, you're the product" applies here.
It just know what you are willing to pay it’s not deals!!!! They learn our budgets
Retailmenot is the first site I've heard of in the early 2010's and I often used them.
Let's not forget you HAVE TO SPEND MONEY to get refunds. How about NOT spend and save for emergencies like "I don't know" "how about a pandemic"!!!!!!
take the jab. vaccines.
I feel there is more to this market than we know. Ask for proper guidance before investing in this pretty much complicated market. I've made over 38 b tc from an allocation of 7 b tc over the last 8 months using Carl Richardson’s help. Things might get worse so just make the smarter move. His te legram ; @ 𝗰𝗮𝗿𝗹𝘀ontrading
Only moment I look for coupons is when I already decided – after extensive research – which exact item to buy, after having checked for the best price for such an item, and if the retailer has a "coupon" field in the payment page. Shopping for something starting from the coupons would only lead to a higher total expense, not savings.
Can't know how I stopmed onto this. Anyway GREAT clip ❤️😄. I also watched those rather similar from mStarTutorials and kinda wonder how you guys create these clips. MSTAR TUTORIALS also had cool information about similiar make money online things on his channel.
So, brands and retailers over price their products and then send you coupons and discount codes to make you feel that you are getting a good deal. Brilliant.
Just buy what you need instead of what u want. I do hate ads. No deals for me.
I understand bringing someone to talk, but this video brought so many that i lost track of the question
Most them codes are useless :-/
Relevant coupons will come into our phone as alerts (or contained in a coupons app within our phone) when the network (t-mobile, att, etc) data and the algorithms knows the inventory of items we have, else we will be offered something we already have. We will buy the same items many times by not having discipline. #selecttherightupgrade
MrBeast = Honey
when you happy get $8k cash back and that is explain your spending habbit
Yep thats a 18 minute ad
2021 online stock market is just difficult and unbelievable, I rather invest my money on crypto
Honey is great even for me and I shop all over the place and love the pleasant surprise of a great honey discount when I am not expecting it. I did try dozens of alternatives and honey is real and current and relevant, the others, if even real, are outdated and lame in comparison.
Just the same way I saw testimony of how Austin helped a man make -$50,000 weekly Profit I tried now am also sharing my testimony with over,$10,000 from the company thanks for the good did he has done for me for this short period of time.
Slickdeals has been pretty useless for 10 years. Most of the deals aren't anything special. Worse, they have sponsored deals which are almost universally terrible deals. It's just like Black Friday turning into something to skip with crap deals.
Crypto is the future, tradind crypto has become a lucrative way of making money