Microsoft Resorts to Search Engine Bribery to Beat Google

By Michael Santo
Editor-in-Chief, RealTechNews

Can’t buy Yahoo! (at least for now)? Buy search users instead.

Microsoft has launched a service called “Live Search Cashback.” The program is linked to Microsoft’s acquisition of Jellyfish.com last year, a cashback site similar to eBates, where rebates of varying percentages are given for purchases clicked-through from the site. This probably explains why the cashback portion of Jellyfish has been down of late — and is down again today.

The cashback program works the same as if you went directly to eBates or Jellyfish. You search for an item, and when you click through and buy, a certain percentage goes into your account. Typically the amount from one of these programs can range from less than a percent to 30% or more.

Essentially, Microsoft has turned Live Search into a combination Pricegrabber.com / eBates.

Microsoft labels this program as “The Search That Pays You Back.” On their FAQ page, a few bullets:

Why are you paying me cashback?

We want to earn your loyalty and reward it with cashback savings for your everyday online shopping. We are “The Search That Pays You Back”!

Can I use an alternative payment method (i.e. PayPal, Google Checkout, etc.) when I purchase from the Store and still get my cashback savings?

We can’t guarantee that your purchase will be reported to us correctly if you use an alternative payment method.

Payout methods are pretty much the standard for one of these services. The cashback amount goes into your account. Funds accumulate until they reach a $5 minimum amount, at which time you can request payment via direct deposit, PayPal, or check. Note there is a 60-day waiting period after purchase to account for possible returns.

How does Microsoft get merchants to sign on to this rebate program? Microsoft is using an alternative payment model called Cost Per Acquisition, in which the advertiser only pays when the ad results in a consumer purchase. This is a fairly typical model for this type of structure.

I’ll say one thing: I’m assuming Microsoft will maintain the Jellyfish rebate structure. If so, the percentages offered are lower than a lot of other cashback sites (call me frugal), but the all-in-one search / rebate structure will probably still appeal to many.

The program, although already live on the Web, will be announced today at an annual event Microsoft holds for online advertisers.