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  • How does cash back website like GoPaisa generate revenue?

    Curious about how cash back sites earn revenue? Want to know the mechanism behind cash back sites? Explore thus thread to know the answers from our experts.

    Currently various cash back websites like GoPaisa, Paytm, Payback are found during online shopping. I want to know how they get the revenue. What is the mechanism which gives them revenue to share with customers? What is the rate of commission they are getting if they are giving cash back for certain websites?
  • Answers

    5 Answers found.
  • Even though it appears that you are getting extra benefits without the need to spend anything, there are commercial benefits that these cash back sites get. There are no specific way that it works for all these sites. It depends on the individual preferences.

    Retailer pays the site for providing them the business which otherwise would not have come their way. The cashback site in turn gives a cut of what it earns to you.

    If you want an analogy, Techulator earns from the contribution from members and it pays you a part of its income back to the members. The cashback sites work the same way.

    Live....and Let Live!

  • These websites share a part of the earnings they earn from affiliate programs. The rest goes in their pocket. If Amazon offers 5% cashback on their electronics products as affiliate fee, these websites will usually share 50% of that amount with you and the rest will be their earnings.

    Rate of commission varies depending upon the merchant. Flipkart offers different commission percentages on various products. Amazon offers different commission percentages based on the category of products etc.

  • The main source of the generating revenue for the website like GoPaisa or Amazon is the commission they get on the products purchased by the people. There is some rate of commission on every product people buy so that directly goes to the site. And the rest revenue is earn by Affiliate programs and ads.


    I find that the harder I work, the more luck I seem to have.

  • Cashback sites like GoPaisa, PayTM, Cashkaro etc. earn money through their affiliate accounts on different ecommerce sites.

    For example, Amazon pays minimum 4% on the sale of each product to its affliate i.e., GoPaisa. GoPaisa pays 2% (approx.) to the buyer as a cashback. The rest 2% is taken by GoPaisa itself. But the real catch is that, GoPaisa is getting 6.5% on the sell of each product.

    Here is how:

    Amazon affiliate commission increases with the increase in number of the sales made by an affiliate in a single month. The minimum percent of commission on each product is 4 but if an affliate sells more than 3100+ (approx.) products in single month, then it will get 8.5% commission on each product sold. And it is very much easy for GoPaisa to sell more than 3000 products in a single month since it has millions of subscribers. Hence, sites like GoPaisa are earning lots of money with a very little effort. Unlike bloggers, they don't even review the products they refer.

  • Two revenue models are - brand promotion and second is affiliate program. This way enough money is generated and can be used to sustain the website and the hosting cost. Asking brands to go for the coupon based sales is another way of making money. This way sites like coupondunia, gopaisa are making money. It takes a lot of time to increase revenue though. However, once this model starts paying the owners, it can be sustainable by keeping the user growth steady.

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