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How do coupon code sites make money?

 
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  #1  
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Join Date: November 15th, 2009
Location: London, UK
Posts: 2
How do coupon code sites make money?

Hello Guru's,

I am trying to understand how do coupon code website's like (Please don't list affiliate sites that aren't yours.) or others like them make money?

1. I see similar "codes" - free shipping et.al at major coupon websites - is it merely a service to aggregate such "codes"? - How can the coupon website make money from this as the user - do they hope that users will click on related advertisements ?

2. Do they have exclusive "codes" for e.g. 15% off ? - in such a case how does the coupon website get paid. The "retailer" is giving the customer 15% off - does the coupon website get paid as well - Won't the retailer just say piss off I am already giving you exclusive coupon to keep your users loyal why do you need money on top of it ?

3. Are there affiliate links? - is there a situation where you have an affiliate link (that promises you say 5% on each purchase) and as a service you show your users the retailers "coupon code" giving them "free shipping" -- wouldn't this be very expensive for retailer - giving "codes" offering discount + paying the affiliate -if I was a retailer I would want to pay one or the other.

I would really appreciate your help as I have been reading through the forums and although I can get bits and pieces I just am not able to get the value chain clear in my head.

Last edited by BurgerBoy; November 15th, 2009 at 11:58 AM. Reason: Listing another affiliate's site.
  #2  
Old
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Join Date: January 18th, 2005
Location: Kentucky
Posts: 9,612
They are an affiliate of the sites that they list coupons for. When a customer clicks through the coupon site to the merchant's site and buys something the coupon site get a commission for a sale just like any other affiliate site does.

The last click to the merchant's site gets the commission regardless of if it's a coupon site or any other affiliate site.

You find merchants at affiliates networks: CJ, Linkshare, SharaASale, AvantLink and etc. You join the merchant's affiliate program and when you get their links you will also see the coupon links they have to put on your site.
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  #3  
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Join Date: January 18th, 2005
Location: NYC
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There are plenty of threads here that cover each of your questions. Some sites are affiliate sites, some sites are advertising supported. All of them are a lot of work to keep current. Merchants choose how to advertise their coupons and who to give "exclusives" to, or whether to allow affiliate sites to post any coupon out there. Some merchants pay less commission to coupon sites, some pay more.

It all depends on the site and the business model.

Are you a merchant or are you an affiliate?
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  #4  
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Join Date: November 15th, 2009
Location: London, UK
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Quote:
Originally Posted by loxly
There are plenty of threads here that cover each of your questions. Some sites are affiliate sites, some sites are advertising supported. All of them are a lot of work to keep current. Merchants choose how to advertise their coupons and who to give "exclusives" to, or whether to allow affiliate sites to post any coupon out there. Some merchants pay less commission to coupon sites, some pay more.

It all depends on the site and the business model.

Are you a merchant or are you an affiliate?
Thanks for the reply - I am a "would be" affiliate - the challenge I have is I am going to be operating in a country - like sri lanka with little or nor concept of affiliate marketing - so

1. I have to come up with a good case on why merchants should pay me in addition to giving my users exclusive discounts. (with really no upfront idea on how much traffic would I bring).

2. Once I get the exclusives how do I protect everyone else who will follow in a year's time and scrap off my codes.

Option 1 - tell the merchant to give a code which if the user puts in they get for e.g. "5%" discount and I get "5%" affiliate commission
- that challenge i feel with this is that some other website would come in and say I will give the user "10%" discount and I will make money through advertising, what would I do then, customers obviously have a better deal through the 2nd website and the merchant is happeier as well.

Option 2 - I don't know
  #5  
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Join Date: January 18th, 2005
Location: Kentucky
Posts: 9,612
We all operate websites with the risk that another affiliate can have a better offer than we do. That's just the way it is.

You build pages - put them on the internet - do the best you can - and don't worry about things that you can't change or do anything about.

Talking about it will NOT make you any money.

The only thing that will make you money is to get busy building websites and getting pages on the internet.

As far as asking merchants in your area if you can promote their products for a commission - just ask them. All they can say is yes or no. They won't bite you either way. You'll never know unless you ask.
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  #6  
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Join Date: May 4th, 2006
Posts: 21
Run while you can, coupon sites are 365/24/7 time sucking, life draining, all consuming things. To be on top of your game you must add the latest greatest deals every single living day. Wouldn't you rather open a nice little store or a happy little blog you could just update once or twice a week I'll join your affiliate program and post your coupons for you!
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  #7  
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Join Date: November 9th, 2009
Location: Stamford,CT
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Quote:
Talking about it will NOT make you any money.

The only thing that will make you money is to get busy building websites and getting pages on the internet.
Amen.
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