Generally in startup ecosystem, founders talk about ways to make money. They try to find new and innovative ways to cut expenditures and maximize saving. But then there are deals and discount based startups – They give customers a freebie – Cashback ! And this makes Startups, which deal in deals and discounts, an eye candy for Junta. Cashback offers do wonders. Paytm and freecharge have benefited from Cashback and now their loyal customer base runs into millions.
Cashback websites are getting popularity at an exponential rate. CashKaro, Lafalafa, Gopaisa are some of the well-known portals that are generating revenues in crores.
But one thing is for sure. These Dealers of deals do generate revenue and somehow they earn big bucks even though for normal public they are only burning money. This makes us, FS Labs Guys, to write down about the business model of these deal n discount startup model.
Cashback portals work on market based commission model. The retailers are happy to give some portion of their sale profit to cashback player for the additional business that otherwise could not have been generated otherwise and cashback player is happy to give some portion of earning to consumers for acquisition and retention. Thus cashback portals are win-win situation for all the involved stakeholders. Consumers are getting benefits like saving, deals etc, retailers are getting benefits in terms of increased sales and cashback player is making money and brand name.
Cashback Websites Business Model
FS brings a pictorial analysis of “Cashback Websites Business Model” – basic concept, business model and cash flow –
Wish you luck for your startup. Stay tuned with FS Labs to know more.