How Does Ebates Make Money

Ebates Make Money

Ebates is a cash-back and shopping rewards company established in 1998 in Menlo Park, CA by two former deputy district attorneys, Alessandro Isolani and Paul Wasserman. Ebates now becomes Rakuten Rewards. Rakuten acquired Ebates in 2014, and officially change the name to Rakuten Rewards in 2019. 

Rakuten Rewards works like a shopping portal that offers coupons and cash back from over 2,000 online retailers. It earns commission when shopping sessions are initiated through affiliate network links. Then, Rakuten Rewards share a percentage of the commission with its members in the form of cash back.

How Rakuten Rewards (Former Ebates) Works

Rakuten Rewards is a free program that provides cash back for online purchases. Discounts and cash back offer for online shopping are considered as too good to be true. There are lots of cash back websites available that actually work and Rakuten Rewards is a very popular one. In fact, Rakuten is one of the largest and most commonly used cash back sites and the site has more than 10 million users and has paid out more than $1 billion in cash back rewards.

Many people think cash back sites like Rakuten are a scam. Many reads asked us how Rakuten pay out all that cash back. The misconception occurs largely because most people don’t understand how these types of cash back companies make money. Usually, cash back companies like Rakuten work with affiliate networks that represent online retailers. Then Rakuten receives a percentage of the purchase price for referring new consumers. A little amount from that percentage goes to the shopper and the rest goes to Rakuten’s account.

According to Chelsea Hudson, senior public relations officer for “TopCashback” – 

“When users make a purchase via a cashback site, the site places a cookie to track your activity. Cashback sites use cookies to remember the link you used to get to the retailer’s site from the cashback site. This is vital to your cashback journey; without a cookie, the cashback site and affiliate network can’t confirm your purchase or your referral. ”

After the purchase, the retailer confirms whether the referral was made by a cash back site. It will take several additional weeks to receive the money from the cash back network. In fact, it might take anywhere from a couple of weeks to several months to pay the rewards to its members. It takes time mainly because of the affiliate networks’ process for confirming purchases. So if are thinking that cash back sites will pay the rewards immediately then you are wrong.

How To Save Money With Rakuten

There are quite a few ways you can save money with Rakuten. You can easily signup with Rakuten using your email address, Google, or Facebook account. You can earn the rewards when shopping online but the reward system also works for in-store purchases. 

For online shopping, go to and find the products that you want to buy from the site’s participating retailers. Then find the best deal from the available cash back offers. Once you find the best deal, click through to the retailer’s site, and proceed with your purchase. 

There is a Rakuten browser extension for Chrome and Firefox browsers. So when you are on a retailer’s website that offers cash back; the extension will show a notification about the offer. When you click on the notification, a drop-down menu will appear and it will show how much cash back you can get.                   

Apart from the cash back offers, you can also find online coupons and promo codes on Rakuten’s website. With these coupons and promo codes, you can earn additional discounts when purchasing a product.   

FAQs About Rakuten Rewards

1. Is Rakuten Free?

Yes, Rakuten is completely free. You can easily open an account using your mail address, or Facebook account.

2. Do You Get A Discount At Checkout By Simply Clicking Through Rakuten?

No, you don’t get a discount at checkout by simply clicking through Rakuten. You will earn a percentage from the amount you shop via the Rakuten website. However, you can use coupon codes to get a discount and save additional money.

3. Can You Use Coupon Codes While Using Rakuten?

Yes, you use coupon codes while using Rakuten. You can use any discount codes you want.

4. How Do You Get The Money You’ve Earned In Rakuten?

Rakuten sends the cashback amount three times a year. You can receive the money via PayPal or directly receive the cash by a check. However, in order to get the cashback, you must earn $5 or more. If you earn less than $5 then your money will stay in your account until you break the $5 threshold.

5. Does Rakuten Link To Amazon?

Yes, Rakuten links to Amazon. For selected categories, you can avail of the cash back offers of Rakuten from Amazon.

Last Updated on May 29, 2021 by Musa D

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