CATEGORIES
- NYC COVERAGE
- WEB STARTUPS
- WEB NEWS
- CONFERENCES
- WEB TECH JOBS
- VENTURE CAPITAL
- MICROSOFT
- INTERVIEWS
- ADVERTISING
- VIDEO
- ALL TOPICS
- ALL COMPANIES
CONTRIBUTORS
- ADRIAN CHAN
- ALICIA NAVARRO
- ALLEN STERN
- CORSIN CAMICHEL
- DRAMA 2.0
- DARREN HERMAN
- HANK WILLIAMS
- MARK DAVIS
- RICK TUROCZY
- SANFORD DICKERT
- SHANNON CLARK
- Comment on YouTube Down for Maintenance by Killer
- Comment on The Absolute Most Awesome Google Maps Mashup Ever by Google Maps Gets A New Layer ? The NYC Subway | CenterNetworks
- Comment on Google Maps Launches NYC Subway/Public Transit Directions by Google Maps Get Layered With the NYC Subway | CenterNetworks
- Comment on T-Mobile USA Outage ? Service Down by khrtt
Microsoft Steals the FatWallet Concept
The big story over the past 24 hours is the launch of the Microsoft Live Search Cashback search. If you haven’t seen it already, you search for a product, see a variety of merchants with said product, order from one and receive some cashback percentage depending on the merchant. Barry Schwartz has an in-depth walk-through of how the system works.
Henry Blodget suggests that Microsoft is not making anything from the merchant transactions. If you are a deal shopper like I am, you already knew that. Some of the merchants are paying out 13+%, no way they will give MS a percentage on top of that.
This is basically a complete ripoff of FatWallet. FatWallet allows you to share with them in the affiliate commissions they receive from sales that start on FatWallet. I’ve been a member for nearly a decade and they have sent me hundreds of dollars over the years. Except for Amazon, I don’t know of any other purchases I’ve made in the last year without going through FatWallet.
In the hundred or so posts I’ve read today discussing the new Live Search Cashback application, most seem to think it won’t work. I totally disagree – if you are are an online deal person, you will be all over this. Why? Because FatWallet (and the other programs like eBates, etc.), share the affiliate commission. Microsoft is paying you (apparently) the FULL commission.
The community of FatWallet will keep their users because there is still some loyalty but I can see people switching quickly to this Live Search Cashback system.
If Microsoft was smart, they would buy out ALL OF THE ADS on every coupon site out there – whether they use Google AdSense, Yahoo Publisher Network or a banner ad network. If Microsoft wants this to work, they have to strike very fast and very hard.
It’s also important to remember that just because someone uses Microsoft for the cashback search, DOES NOT mean they will use Microsoft for the normal Web search. In fact, I’d bet most will think of Microsoft’s cashback search as another product, not a Google replacement.
Rewardlover are the best of cashback site especially if your looking for free cash. The free reward page has many offers where no purchases are necessary. Different to live.
Dealking.com also pays 100% of their cash back for many stores.
I find with cashback sites such as rewardlover they specialize in free rewards unlike other cashback sites and cashbacklive. They also offer 100% and you can make a load of money from simply using free and daily reward pages where no purchases are necessary.
I don’t know if I’d call it stealing or a ripoff– it’s just making the concept much, much better. FatWallet’s had years to work toward this, any difference in the cashback amount is simply a door they’ve left open for this kind of competition.
I think FatWallet, in having such a value-conscious audience, is probably in some trouble on this, their users will be aware of this and likely try it out. But I don’t really know if the audience for the Live Cashback is that huge. It’s one more step in the buying process, and to a person on the outside the whole signup process sounds daunting. Whether it is or not is beside the point.
I’m in the price comparison business, and I’ve just never been inclined to use FatWallet. I’ll look at Cashback, but if I’m looking for deals there are normally coupons or savings of 20-40% out there, the additional 5% or so, much less on electronics, is usually not going to get me too excited.
Aren’t there too many cash back websites already? ebates, fatwallet, dealdigs.com, dealking…
I don’t think Microsoft will provide cash back in such a big percentage all the time. Obviously, MS is losing money on this model although I know MS has tons of cash.
Please come by Bargainsaddict.com for some great deals and coupons.
First of all, this isnt a ‘Fatwallet’ concept, FWcopied numerous other sites (ie Ebates) that had this model well before FW even considered it.
Secondly, live.com is terrible with regards to paying the money they owe. It is turning into a big scam where they just deny cashback until you file complaints with the BBB and your local congressman, then months later they will say ‘oh it turns out the reason we denied your cashback isnt true, so here you go.’ A huge pain for the 5% of people willing to put in that effort, and cash money in Microsoft’s pocket for the other 95%.
Also, Ive noticed with at least 25% of my purchases that no cashback ever appears… guess Microsoft needs that extra $20-25 to pad their 50B bankroll.
I am often on the lookout for savings on tech gear. I like DealDogs.net because you can get email alerts by category so you only get alerts on what you are looking for. It also includes product videos as well as detailed information about the products.