A little guide to cashback sites

What would you do if I told you that you were paying too much for almost everything you buy online?

Online retailers make a lot of money from you. They are prepared to pay other websites for you to be referred to them. What if you could get a cut of that referral, and therefore save money on what you are buying?

That is where cashback comes in.

It sounds too good to be true, but it isn't. Cashback (and cashback websites in particular) can be a little confusing so here is a short guide to get you started, as well as some hints and tips to help you along the way.

What is cashback?

There are now websites which give you money back when you pay for stuff online. Mobile phones, broadband, electricity, hotels, travel and much more. You sign up for an account, click through to the website you were going to use anyway, and then when you make the purchase a percentage of it comes back to you.

How does it work?

The cashback sites make money from connecting you to the companies you are purchasing from, and you get a cut of that. There’s also the option of “free” cashback, small amounts for taking surveys, using price comparison sites, from companies which are looking to increase the number of people on their websites.

When shouldn’t I use them?

This is important.

Never buy anything through one of these cashback sites that you weren’t going to buy anyway. Otherwise you’re just spending to get stuff you don’t need. Lose lose! Wait until you need something, like when you switch broadband, or get a new phone contract.

What are the best cashback sites to use?

The top two sites are Topcashback and Quidco.

They are the biggest, and therefore they can generally afford  to pay you the biggest cut. They are also therefore probably less likely to go bust and your earnings are safer with them. They are pretty similar and offer similar levels of cashback. Topcashback has a better advert- so I prefer them. Links to the two sites are below:

If you want any further information there will be a walkthrough of how the process works- using an example I've earned cashback on, appearing on the blog very soon.

Follow me on twitter for quotes, tips and more.