How do coupon and cashback affiliates differ?
Cashback and coupon affiliates operate differently and are able to provide incentives to brands and ultimately their customers in their own distinct ways.
Coupon affiliates publish and promote advertiser coupons, vouchers or promotional offers to their extensive database. They generally provide shoppers with a discount, special offer or incentive of some sort that can be applied at check out to guarantee the best price for a product or service. These affiliates receive their negotiated commission when a customer transacts with a brand via their platform. Coupons are not limited to incentivising customers solely with significant discounts, but can also be used in Gift With Purchase (GWP) and Spend and Save styles of promotions that can help to increased Conversion Rates (CR) and increased Average Order Values AOV) for the brand involved. The commission is paid on the discounted sale value.
In contrast, cashback sites entitle a shopper to x amount of money back for orders they make via the cashback site; with the money being owed back to them commonly referred to as ‘cashback’.
Cashback sites pass back a portion of the commission they earn from a sale to the customer in the form of cashback; which means that a brand will never need to pay extra to cover the cashback amount that is entitled to the shopper for each order made. The cashback affiliate shares the commission with the consumer by giving away some of it and keeping the remaining commission to themselves.
While cashback sites have the capability to promote coupon codes provided to them by a brand, their primary motive is to incentivise their loyal and ever-growing member bases by means of cashback when transacting with a brand via their platform. This means that brands do not necessarily need to provide promotional offers or discounts to cashback affiliates to attract customers, the cashback incentive is enough in itself to engage and entice customers accordingly.
In conclusion, both types of affiliates can help incentivising customers. We recommend working with all types of affiliates. You can read more about the importance of a diversified affiliate program here.