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If You Can’t Beat Em .. Then Join Them

I must admit I was a little suprised at first to read today that ‘the Duckman’ Jason Dale has launched his own cashback website cashquack.com
I say suprised because as Jason is the first to admit in his blog, he has not always been the biggest fan of cashback websites and neither am I.

Don’t get me wrong as a consumer I love cashback sites – There is nothing better than scanning a few price comparison websites and finding the cheapest option and then banging the price down even further by discovering that I can get moneyback from that retailer on the highest paying cashback site.
Its saved me a small fortune :) I’d recommend it to anyone. (ahem!)

Now I always do this when I shop online and I’m sure other affiliates do the same, plus even use their own affiliate links on occassions. Its one of the purks of the job right?

The problem for me with cashback sites is they let everyone know how to do this and thats not really a good thing as far as affiliate marketing is concerned in my opinion.
I never shop online without getting some form of cashback or another ( why would I ? ) But soon everyone in the land will be shopping this way so you had better wave goodbye to your shopping portal and niche product websites because no one is going to pay you ‘their own commission’

In time the only way for affiliates to gain any decent income from retail affiliate programs will be to have a cashback site of their own which I think is why Jason has made the push to launch his new site. ( He hasn’t gone quackers after all )

Cashback sites aren’t as profitable as traditional links so affiliates are being forced to cut their margins.
There is already a large number of cashback sites and the growth of new ones emerging is going to accelerate at an amazing pace.
I’m sure it won’t be too long before families set-up their own personal cashback sites for each other to use as they hook on to the idea which will leave affiliates ‘high and dry’

This will eventually – all but kill the retail affiliate marketing industry as we know it.
Make hay while the sun shines I say because its all going to be spread a little thin for all retail affiliates pretty soon.

Thanks for reading everyone and good luck with the new venture jason
I’m off to get my own new CB site while theres still a chance of making a few quid ;)

Mike

One Response

  1. It’s taken about 12 months for us to go ahead with launching CashQuack – so the decision wasn’t taken without considerable time and thought.

    Over that time we’ve seen our users tell us they’re shopping via voucher code sites and cashback sites… and whilst that may continue, we’ve now put ourselves in a position where we can counter that … to a point.

    I think retail affiliate can still do well – in niche areas – but it’s high value items (so large commissions) and high CPA deals (insurance/broadband) is where people are looking for cashback.

    Take The RAC – they offer affiliates £22 CPA – yet their annual breakdown cover is £33. Take a couple of cashback sites (and Martin Lewis) telling users they can get breakdown cover for £11 – imagine how many will consider that – and then how difficult it is for a normal affiliate to compete on such a playing field?

    There needs to be changes – but what and how?

    Jason

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