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How Do Coupon Sites Make Money

Coupon websites are becoming quite popular nowadays where people get discounts for the product they purchase online. Because of the very dark economy, nowadays people are getting desperate and look forward to ways to save money by bringing down their daily expenditure. So as a result discount coupon websites give them a steady nudge due to which there is a surge in coupon business.

There are many ways people visit the coupon websites- by directly visiting the website, through search engines, advertisement, emails and even social media websites.

Internet happens to be one of the most convenient media for coupon websites, as it’s easier for them to target and attract more customers. Also, users can find it convenient to check for new deals available on the website. Maintaining a coupon website is one of the easiest ways to earn money by promoting several products of various brands.

Such sites make money through direct sales and other through alternatives like free giveaways to generate income. Here in this article, we will discover how exactly coupon websites make money to grow and survive.

Affiliate Marketing:

Today about 50% of the sales are being driven through affiliate industry. You might have noticed a lot of coupons and deals listed on the coupon sites. This way the brands and its deals are exposed to the traffic coming from the coupon sites. In affiliate marketing, retailers and brands pay a small amount as commission to other websites to generate traffic. All the links used in the deals are through the affiliate network.

Depending on the traffic of the website coupon websites earn the commission. For example, the website having highest conversion rates as compared with other websites based on the nature of the product and deal you are looking for will earn a minimum 10% commission.

Online Advertising:

Coupon sites also use ad-placement services to offer advertising space on their sites. Based on the number of times it is viewed and clicked, these online pay per click ad-placement services pay a certain amount of the commission. This business model helps the coupon company to give away coupons for free based on the traffic to drive advertisement income.

Getting Sponsorship from Big Companies:

Few coupon sites sell deals to customers by charging coupons for the price less than the original value. If for example, a retailer sells a product for 4x, coupon website offers it at 3x. So this makes the coupon sites to bring additional business and get their share of the commission. For these organizations, coupons go about as consistent stock, enabling them to utilize a conventional retail plan of action. Success depends on reliably driving new traffic to participating organizations to secure coupons from bargain suppliers since it is the key to dependably replacing inventory.

Popular coupon sellers charge well-established companies a certain fee amount to promote their product on the website. This will work only if they boost the company sale that compensates both the discount deal and fees paid to be part of the promotional program. Commission paid after sales by the deal providers are also included in this program model.

Generating Massive Sales:

Coupon websites can also sell coupons in bulk directly to their customers. For example, they can sell physical coupon books by charging a fraction of total savings costs contained in the book but at the same time getting enough cash to cover printing expenses and deals costs.

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