How do Coupon Websites or Deal Websites Earn Money?

0
2898

Till now, we have covered the basics of affiliate marketing & how to start a blog on WordPress of Blogspot. If you have not read my earlier posts then I would recommend you to please go through the posts below so that you are aware of the basics & it will be easier for you to understand as what we are talking about here.

Suggested read - How to Start a Coupon Website?

In one of the earlier affiliate marketing tutorials, I mentioned about how affiliates earn or what are the types of affiliates. Here in this tutorial I will be discussing about Coupon/Deal Websites or Coupon affiliates as how they make money.

Note: There isn’t much difference between coupon or deal websites. The only difference is if you are particularly looking for a store coupon then you will visit coupon website as they have store-wise coupons listed on the website. Whereas deal websites do not list coupons as coupon websites does. Deal websites list deals from various stores which may or may not have a coupon with it. Just have a look at the websites mentioned below to see it yourself.

Now coming back to the topic, so How do Coupon or Deal websites Earn Money?

As I mentioned earlier as well that Coupons/Deals websites are the majority earners in the affiliate industry. This category alone must be covering around 50% of the sales being driven in the affiliate industry. I am talking about the shopping (e-commerce) category. So it makes sense to know as how they earn money.

Let’s take example of some of the top coupon or deal website earners in the US.

Coupon Website: www.retailmenot.com, www.coupons.com, www.flipit.com

Deal Websites: www.slickdeals.net, www.dealnews.com, www.fatwallet.com

How do These Websites Earn Money?

If you have a look at these websites you will see on these websites coupons & deals listed. Clicking the links on these will take you to the advertiser’s website where you can buy the product. When you have made a purchase through these website they get paid for that a fixed amount or % of the sale amount. Apart from this all the sales which will be happening within 30 days of time period from the clicking to the website will be attributed to the coupon/deal affiliate [provided the user has not visited any other website to reach the same advertiser].

Coupon affiliate

All the links on deals/coupons are through affiliate networks (majority of the links) whereas some of them are through their direct relation with the advertisers.

How do Users Come to These Websites?

  • Direct [if the website has a brand value it will have lot of direct users]
  • Search Engines: in most of the cases it will be through search engines. Almost 70-80% of the users come through search engines.
  • Social Media website: either Facebook or twitter.
  • An Advertisement: user watched an ad somewhere on the website. This is very unlike though.
  • Email: user received a promotional email.

Where do These Affiliates Get Coupons/Deals From?

This is one of the most critical parts of the coupons business as all your users are coming to website only for deals or coupons so these have to be updated on timely basis. There are below ways they update it on their website:

  • Provided by the affiliate networks
  • Researched by the team & kept updated on timely basis
  • Coupons Feeds APIs: this automates the updation of coupons/deals. Some of the networks do provide coupons or deals feed which can be used by affiliates. There are some 3rd parties as well who provide such feeds. Although this is not what most top of the coupons website follow as it may miss most deals which are killing in the market or may be not updated well in time. Some of the 3rd parties who provide coupon feeds are popshops.com (by Rakuten), www.coupilia.com, www.coupons.com etc.

How much do these websites earn?

This is a very broad question as it all depends on the traffic on their website. Just to make rough estimations, for your knowledge that coupon/deals websites have the highest conversion rates (more sales in less clicks) as compared to the other categories of websites due to the nature of the product as you will look for a deal or a coupon only when you are looking to purchase something. It can go upto 10% or even more.

Let’s take an example where a website has, these are very realistic numbers.

  • Users: 1000 per day
  • Click Through: 300 clicking through to advertiser’s website [considering 30% CTR]
  • Sales: 30 [considering 10% CR]
  • Earning: USD 30 per day

So out of 1000 users 300 will be going to advertisers website & out 300  users 30 people will buy a product. Now considering USD 1 per (the lowest) transaction as commission. You will be earning USD 30 a day. If you check traffic of these websites it is in millions so you can imagine how much they must be earning [millions a month].

Suggested: What are the Ways to Earn Money Online?

Are you also looking to start a Coupon/Deal website or looking to Start a Blog? I discussed the latter in my previous posts & I will be discussing the previous in the next post to come. Please stay tuned.

LEAVE A REPLY