Like other free websites, online coupon code providers allow others to advertise on their website. Selling advertising space allows for profits from other organizations. Such websites also use Pay Per Click marketing that allows them to earn a certain amount when an advertisement is viewed. This method pays out even more money when a Pay Per Click link is clicked on. Advertising income depends on the quantity of traffic that can be driven to host website.
Affiliates
Internet discount providing sites can also earn profits by developing relationships with other rebate deal providers as well as through affiliate programs. Affiliate programs require the host coupon code provider to lead traffic to their respective websites. In most cases smaller rebate deal providers list deals offered by larger coupon code providers. This allows them to be able to earn a commission on the sale the larger rebate deal provider makes.
Deals
In certain cases discounting promo code providers buy the merchandise they intend to provide a concession on and sell it at lower rates. They must find certain goods or services being sold at rebate rates to be profitable. It is likely that the promo code provider has taken on a more traditional retailers perspective on the deals they offer. This way coupons can be considered to be a steady source of inventory. Retail method of providing coupons relies on the continuous flow of new traffic to the site as well as making sure the discount provider has enough inventory to provide concessions on.
Merchants Pay
When an online discounter has established itself in the eyes of the consumer then they can even demand payment from the merchant whose product they are rebating. They can charge a commission or marketing fee for each product they provide promotional discounts on. Since coupon code providers are marketing the good, thus any sale made through them can earn them certain fees.
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