Logbook Loans: How do Cashback Websites work?
Is it really possible to earn quick cash by spending money?
We all have that one friend who is really good with money. You know, the one who is always able to buy the nice things they want and never seems to be struggling to make ends meet at the end of the month. How do they do it?
Well there is a lot of wisdom in the old saying that if you take care of the pennies and the pounds will look after themselves. As regular readers will know, at Logbook Loans we always stress the importance of making a realistic budget, and monitoring your spending carefully so that you stick to it. It really is true that every little helps.
One way that financially savvy people top up their finances is by using cashback websites. These websites will pay you money when you use them as part of an online purchase. You buy what you want, from the retailer of your choice, and the cashback website gives you money. It really is that simple!
Not only is it simple, it is an excellent way of making a bit of quick cash. Some people claim to make hundreds of pounds a year on cashback websites!
So let’s look in more detail at how it works.
You join a cashback website
The first thing you need to do is sign up to a cashback website. Membership is free, though some cashback sites do have paid subscriptions where you can reap greater benefits. Two of the best known and most reputable cashback websites are Topcashback and Quidco.
You make a purchase
When you want to buy something, you log in to your cashback website and search for the online retailer you want to buy from. You then click the cashback site’s link to that company. If you buy something, the cashback amount is then put into your cashback website account.
How much cashback do I get?
Rates vary between cashback websites and different retailers, but typically could be anything between 1-5% of the cost of the product.
But why do the retailers give cash back?
The retailers pay the cashback website because your business has come to the retailer via that cashback site. It is a variant of “Pay Per Click” (PPC) advertising. So a company – let’s call it WishyWashy – agrees for a cashback site to set up a link to its website. If someone comes to WishyWashy’s website through that link, WishyWashy will pay the cashback website some money in return: because they may not have got that customer if it were not for the cashback website. So they are paying the cashback website for sending them that customer.
The cashback website then pays the customer some of the money they have received from WishyWashy because they want as many customers on their website as possible. The more customers they have, the more money they will get from the retailers that those customers visit.
So how do I actually get my money?
With most cashback websites, your cashback money is credited to your account with that website. You can actually get hold of it by then transferring it to your bank account. Some cashback websites have a minimum amount that your account must reach before you are able to transfer it. But do transfer it when you can, rather than letting it build up on the website, then it is yours to do with as you wish.
This sounds too good to be true! What is the snag?
Well, there isn’t one! To be fair, you do need to spend money to reap cashback benefits. But if you need to buy things anyway then why not use a cashback website and earn a bit of extra cash at the same time?
We would advise comparing cashback sites carefully to make sure that you are getting the best deal, and also (as always) read the small print to check the details such as their minimum threshold for withdrawing your money. Also make sure you read any updates from the website in case their payment policies change at any time.
But if you use them wisely then cashback websites can be a real bonus!
We hope that you can make use of cashback websites to boost your finances. If you need any other financial help then do get in touch with us at Logbook Loans. We have a variety of financial products to help you. You can apply for one of our online loans, or you are welcome to call us on 0330 400 4137.