Is a rebate site is a good strategy
- Thread starter jjblond
- Start date
Hi Jaime.
Thanks for starting a new thread with this question. This way others who may be looking for info about starting a rebate site may be helped by this thread as well.
Wanted to copy over my original comment I made that encouraged you to ask the question. Linda Said:
"I don't want to rain on your parade BUT... Are you sure you want to do a rebate site? I'm a pro with years of experience and if someone gave me $100,000 and said here, the money's free, go start a rebate site, I'd tell them no way.
So sorry to burst your bubble but there are a variety of reasons I say this. It you've already committed and started the site, then I'm sorry. If you aren't quite there yet and are open to switching gears, let me know and I'll tell you my reasons and give you feedback in a new thread."
I only have a couple minutes, so will add a few quick points.
:: Special software needed and extra tracking. With the little $ you'd make on this, plus having to pay out commission I just don't think it will be worth all the extra headaches and programming to even get this set up. Multi million dollar companies do it, but they have teams of programmers and money to invest. If you knew what I know about how CJ is set up and how the tracking works you'd see it's an extremely difficult task.
:: Rebate sites have a really bad reputation. Many IMHO are dishonest. You'll be classified as an incentive site (you're giving people $back to entice them to buy) therefore many merchants won't even accept you and rebates are against the TOS in some programs.
:: The most basic and important to understand is marketing and traffic. Affiliates that start mall type sites these days have a really tough time getting traffic and sales. It's a scatter gun approach where you try to be everything to everyone. The site isn't focused on a specific niche, so SEO is harder, target marketing is harder because you have so many product categories and even just setting up merchants is harder because you have so many.
Ask this, why would someone shop at ABC mall when they could just go to Amazon or Walmart or Sears? Additionally how will they find you among 1,200,000 other affiliate malls that are already established. If the answer is "I offer rebates and that's why they'll shop with me" then realize they won't even know about you and the fact that you offer rebates if they can't find you in the 1st place. Then too there are already lots rebate programs that are with big companies that have marketing dollars and are already established.
I totally get why you would think it makes sense to give people a rebate to shop with you and if I were in your shoes I may think the same thing. But knowing what I know now, I can almost promise you lots of time, money and frustration invested for little to no returns. And that's if you could even figure out the tracking, reporting piece to even begin.
PLEASE REALIZE I'm not trying to be negative and burst your bubble. I'm trying to save you
heart-ache and help you get into something where you can profit.
Start with a small niche, that isn't too competitive where you can focus on getting targeted traffic. If you haven't yet read the newbie stickies and the niche marketing stickies. They'll help you get off to a good start.
Hope this helps and best of luck!
Thanks for starting a new thread with this question. This way others who may be looking for info about starting a rebate site may be helped by this thread as well.
Wanted to copy over my original comment I made that encouraged you to ask the question. Linda Said:
"I don't want to rain on your parade BUT... Are you sure you want to do a rebate site? I'm a pro with years of experience and if someone gave me $100,000 and said here, the money's free, go start a rebate site, I'd tell them no way.
So sorry to burst your bubble but there are a variety of reasons I say this. It you've already committed and started the site, then I'm sorry. If you aren't quite there yet and are open to switching gears, let me know and I'll tell you my reasons and give you feedback in a new thread."
I only have a couple minutes, so will add a few quick points.
:: Special software needed and extra tracking. With the little $ you'd make on this, plus having to pay out commission I just don't think it will be worth all the extra headaches and programming to even get this set up. Multi million dollar companies do it, but they have teams of programmers and money to invest. If you knew what I know about how CJ is set up and how the tracking works you'd see it's an extremely difficult task.
:: Rebate sites have a really bad reputation. Many IMHO are dishonest. You'll be classified as an incentive site (you're giving people $back to entice them to buy) therefore many merchants won't even accept you and rebates are against the TOS in some programs.
:: The most basic and important to understand is marketing and traffic. Affiliates that start mall type sites these days have a really tough time getting traffic and sales. It's a scatter gun approach where you try to be everything to everyone. The site isn't focused on a specific niche, so SEO is harder, target marketing is harder because you have so many product categories and even just setting up merchants is harder because you have so many.
Ask this, why would someone shop at ABC mall when they could just go to Amazon or Walmart or Sears? Additionally how will they find you among 1,200,000 other affiliate malls that are already established. If the answer is "I offer rebates and that's why they'll shop with me" then realize they won't even know about you and the fact that you offer rebates if they can't find you in the 1st place. Then too there are already lots rebate programs that are with big companies that have marketing dollars and are already established.
I totally get why you would think it makes sense to give people a rebate to shop with you and if I were in your shoes I may think the same thing. But knowing what I know now, I can almost promise you lots of time, money and frustration invested for little to no returns. And that's if you could even figure out the tracking, reporting piece to even begin.
PLEASE REALIZE I'm not trying to be negative and burst your bubble. I'm trying to save you
heart-ache and help you get into something where you can profit.
Start with a small niche, that isn't too competitive where you can focus on getting targeted traffic. If you haven't yet read the newbie stickies and the niche marketing stickies. They'll help you get off to a good start.
Hope this helps and best of luck!
quick question
As I am absorbing and applying your information to our situation. ( little different than the norm.. I think).
I was wondering the following:
When I look at the major players in "incentive/rebate sites":
ebates, mr. rebates, etc,.. Just to name a few huge ones....
They seem to have a lot of stores.. at least the major more popular stores.
Do the bigger stores allow incentive sites and not so much the smaller ones? There seems to be a lot of popular stores on their sites?
Are they choosy with whom they allow to join?
Just wondering?
Thanks again, I want to know all the good, bad and ugly before we get too deep. For us it isn't just about making money.. It is more of a personal thing to help the organizations we work with on a daily basis. Our "niche" is more on the side of "who" the site is geared for and what they can benefit... not really the masses. All your points are well taken ( and TRUE!)... I guess the one difference is we plan to market directly to our consumers ( in person from the top down)-- Make sense? Our site fills a void that is not found in most rebate sites and we feel it can benefit certain groups immensely. We really need an affiliate consultant though! ( have any recommendations?)
Your thoughts are very welcome and Needed..
Two major problems that still exist are 1)getting rejected by stores and 2)getting the feeds from CJ ( you are right-- they are extremely difficult). Are they even possible?
Hopefully I didn't blabber too much!
Thanks again, Jaime
As I am absorbing and applying your information to our situation. ( little different than the norm.. I think).
I was wondering the following:
When I look at the major players in "incentive/rebate sites":
ebates, mr. rebates, etc,.. Just to name a few huge ones....
They seem to have a lot of stores.. at least the major more popular stores.
Do the bigger stores allow incentive sites and not so much the smaller ones? There seems to be a lot of popular stores on their sites?
Are they choosy with whom they allow to join?
Just wondering?
Thanks again, I want to know all the good, bad and ugly before we get too deep. For us it isn't just about making money.. It is more of a personal thing to help the organizations we work with on a daily basis. Our "niche" is more on the side of "who" the site is geared for and what they can benefit... not really the masses. All your points are well taken ( and TRUE!)... I guess the one difference is we plan to market directly to our consumers ( in person from the top down)-- Make sense? Our site fills a void that is not found in most rebate sites and we feel it can benefit certain groups immensely. We really need an affiliate consultant though! ( have any recommendations?)
Your thoughts are very welcome and Needed..
Two major problems that still exist are 1)getting rejected by stores and 2)getting the feeds from CJ ( you are right-- they are extremely difficult). Are they even possible?
Hopefully I didn't blabber too much!
Thanks again, Jaime
Hi Jaime,
Oops, should have asked you more about what you were doing. My assumption was that you were just a newbie, that had an idea to do a rebate site. If you have an organization or connections with associations or something that you are building this business model around then that's a slightly different story. Especially as far as marketing, if you already have a built in marketing to market to.
As far as the big rebate companies having lots of merchants on their sites. Lots of issues there but a) they are big and established and some merchants want to be on them because they know they have lots of traffic and/or because their competitors are there and/or the networks have special relationships with them and push them out to merchants. So as a small rebate site starting out, merchants that don't allow rebates or screen out incentive sites won't approve you.
Plus some of the rebate sites used to or still do steal commission from other affiliates so they've given that industry a bad name and some merchants just decline all rebate sites.
NOW IF you have a special model that supports certain types of groups or churches or associations or something you may have an easier time. Most of my comments above were for someone who just wanted to start joesrebatemall.com or whatever.
Oops, should have asked you more about what you were doing. My assumption was that you were just a newbie, that had an idea to do a rebate site. If you have an organization or connections with associations or something that you are building this business model around then that's a slightly different story. Especially as far as marketing, if you already have a built in marketing to market to.
As far as the big rebate companies having lots of merchants on their sites. Lots of issues there but a) they are big and established and some merchants want to be on them because they know they have lots of traffic and/or because their competitors are there and/or the networks have special relationships with them and push them out to merchants. So as a small rebate site starting out, merchants that don't allow rebates or screen out incentive sites won't approve you.
Plus some of the rebate sites used to or still do steal commission from other affiliates so they've given that industry a bad name and some merchants just decline all rebate sites.
NOW IF you have a special model that supports certain types of groups or churches or associations or something you may have an easier time. Most of my comments above were for someone who just wanted to start joesrebatemall.com or whatever.
no oops needed at all
We are part of the organizations of whom which we are building the site for, but we are still a 'start up' company trying to make a 'rebate' site.
In my eyes, I think everything you said still applies to some degree. As the site is being developed, I like to continue learning about affiliate marketing and be prepared for the trials and problems that we have yet to face.
I think we are starting from a different angle, but we are going through the same waters. ( hopefully not too corney, there!) haha,, not only terms of "new business", but also in affiliate marketing.
I know we are taking on alot and probably biting off a little "too much", just by trying to do this site, without the needed experience.
It is still affiliate marketing, but with a spin... so it is hard to get the appropriate
resources. ( The only people that could truly help and guide us, would be the big companies, but I dont think they would be that open LOL).
Thanks again for all your help.
You have opened my eyes and reassured me all at the same time.
We are part of the organizations of whom which we are building the site for, but we are still a 'start up' company trying to make a 'rebate' site.
In my eyes, I think everything you said still applies to some degree. As the site is being developed, I like to continue learning about affiliate marketing and be prepared for the trials and problems that we have yet to face.
I think we are starting from a different angle, but we are going through the same waters. ( hopefully not too corney, there!) haha,, not only terms of "new business", but also in affiliate marketing.
I know we are taking on alot and probably biting off a little "too much", just by trying to do this site, without the needed experience.
It is still affiliate marketing, but with a spin... so it is hard to get the appropriate
resources. ( The only people that could truly help and guide us, would be the big companies, but I dont think they would be that open LOL).
Thanks again for all your help.
You have opened my eyes and reassured me all at the same time.
Oh good, happy to help!
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