Friday, 18 September 2015

How do Online Coupon Companies Make profit?



There used to be a day when the Sunday newspaper came with bunch of coupons but then, we had no idea that it would soon have an online avatar. The online coupon industry has become an integral part of the e-commerce sector. It’s no reason to wonder that every online buyer is aware about the benefits of using coupons while buying. They are magic codes that help you save money effortlessly.  

Coupons are smart marketing tools to crack the sale. Online coupon portals host coupons from various e-commerce portals and even offline stores. The businesses whose coupons are hosted gain direct traffic, first time visitors and potential buyers. Consumers can save money by using those coupons. But how do the online coupon companies earn. It is great to know more about the shopping Eco-system.


There is no single way through which the coupon portals make money. Here are few basic ways that coupon portals use to make money.

Online Advertising: The coupon portals get good amount of traffic and they can sign-up with ad placement services to earn money.

Program Fees: Established coupons websites charge the businesses a program fee for marketing their products through coupons.  


Affiliate Programs: Online coupon portals can make money through affiliate programs with other deal distributors or with e-commerce stores. In an affiliate program, an online retailer or coupon company pays another website to drive traffic through the store.

Next time you get a free coupon, don’t think it is absolutely free though you are definitely profiting from it.

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