TopCashback made around $167M in revenue, and $12M in profit in 2018.
And they don’t sell any product or service to their users.
How does TopCashback make money?
This is the normal question that someone should ask after hearing this information.
Because knowing the answer might open for you a wide opportunity to start making money online with the same business model of TopCashback.com.
And you are in the right place to find the answer.
In five minutes only, I will help you understand how Top Cashback works and earns money, and how I personally make money in a similar way, even though I started with no experience and without learning technical stuff.
So, without further ado, let’s begin!
How Does TopCashback Make Money?
TopCashback makes money by earning commissions and sponsorship fees from the online retailers and marketplaces that TopCashback.com gives promotions for.
And this model is called affiliate marketing, or referral marketing, which is a completely legitimate model.
Almost all other cashback and discount coupon sites make money with the same model.
For example, this is how The Honey App makes money online without selling anything.
Just as an example, when someone visits TopCashback.com to look for deals on some items, let’s say gardening tools, they would find discount coupons or cashback offers for websites that sell these products, let’s say Home Depot.
And when someone joins TopCashback.com, they will get the offer, and they will be requested to click on a specific link in order to activate it.
And that link is a unique link that takes people from TopCashback.com to Home Depot’s website to do the purchase and get the cashback reward.
And this link is called an affiliate link, and it is how the retailer like Home Depot will track the customers that come to it from TopCashback.com, so that they give Top Cashback a commission on the purchases these customers made.
Now you might ask yourself:
How does TopCashback make sure that their users will click their affiliate links before buying from the retailers?
Simply, because the discount or cashback deals they offer are exclusive deals that people cannot get unless they click on the links on the TopCashback.com website.
Another question that you might ask now:
How Does TopCashback Profit if They Pay to People Cashback Rewards?
The answer is simple!
TopCashback will pay their users a cashback reward that is usually lower than the affiliate commission they (TopCashback.com) will get from the retailers.
For example, TopCashback might offer its users a certain cashback reward that is a percentage of their purchase value, which goes from 1% to based on every retailer.
For example, they give you a 2% reward if you buy from Home Depot’s Canada website.
And if we research, we will find that Home Depot pays its affiliates (like TopCashback.com) a commission that is anywhere from 1%-8% from the total order value of their users, depending on the products purchased.
Let’s say that you ordered stuff that is worth $200 from Home Depot’s Canadian website.
You will get a %2 cashback reward from TopCashback.com.
That’s around $4.
And let’s assume that the affiliate commission on the products you purchased was 6%.
That’s equal to $12, which is the affiliate commission that TopCashback made from Home Depot.
This means that they netted $12-$4= $8 in profit, and that’s only from your order.
And since tens of thousands of people go TopCashback.com on daily basis, this means that probably thousands of their users use their offers to order stuff from different retailers in order to get cash back rewards.
Which means that TopCashback.com potentially makes thousands of commissions form different online retailers and merchants everyday.
And that my friend, is how TopCashback.com works and makes money online without selling any service or product by itself.
And now, for the most important question of the day:
Can You Personally Make Money with TopCashback’s Business Model?
I personally make money with this model of TopCashback.com.
Affiliate marketing is a popular way of generating income online, and although many people use this method, but affiliate marketing is still worth it and profitable even in this year and beyond, because people are buying online more than ever.
And the nice thing is that you don’t need to start as big as TopCashback.com, and you don’t need to promote every product or marketplace in order to make money with this model.
Actually, it is easier to start with focusing on one niche, such as a hobby or a sport, a skill, a passion, an interest, a profession, …etc.
And you don’t have to offer cashback rewards in order to make money with this model, but you need to help people find what products (physical or digital) or services help them achieve certain results or solve certain problems, and they might buy through your link if you they are convinced.
I personally have many affiliate business, and each one is focused on one niche, such as this business that teaches people how to jump higher for dunking in basketball, where I refer people to an online video course that teaches them how to increase their vertical.
And I get a commission from the course owner on every customer I bring to them.
And you too can do the same and make money with affiliate marketing like TopCashback does, but in the niche or industry that you like and you choose to work on.
Can You Make Money with TopCashback itself?
This is an option.
TopCashback itself has an affiliate program that allows you to invite others to join TopCashback.com through your affiliate link, and they will give you a bounty on every new user you bring, which would be few dollars.
But if you want to make real money with this model, then you better work as an affiliate for big retailers and merchants in order to get good commissions.
3 Steps to Start Your “Mini-TopCashback.com” Business
Affiliate marketing is a simple model that requires you to do the following three steps if you want to make money with it like Top Cashback does:
1 – Choose a Niche Like TopCashback
TopCashback focused on people looking for discounts and cashback rewards if they buy products in certain categories, such as: home and gardening, electronics, health, …etc.
And you don’t need to work on all of these categories if you want to earn money with the TopCashback business model, unless you have a big team.
But if you start alone, like most of us did, then you better focus on a niche that you are interested in, or something that you like.
Just for the sake of picking an example, let’s say that you want to work in the gardening niche.
2 – Build an Affiliate Site Like TopCashback.com
Don’t worry if you have never started a website before!
I will tell you in the next section where you can build an affiliate site in few minutes and without technical knowledge or experience.
But you need to understand that you need a website if you want to make money on the long run with TopCashback’s business model.
You need a place to show the offers you have, and to bring people to see them and click your links before buying what you promote.
3 – Start Helping Your Audience Like TopCashback Does
TopCashback provides help to its users by offering them discounts and cashback rewards, and that’s why people buy after visiting TopCashback.com, which allows this site to make money.
And you need to help your audience if you want to make money as well.
You don’t have to offer cash back rewards, but you need to help people find the best products and services that can help them achieve desired results or solve certain problems.
And by doing so, you are saving them time by researching on their behalf.
That’s how you can make money.
For example, assuming that you want to work on the niche of gardening like we said earlier, your audience might ask Google stuff like:
- Best gardening gloves for women
- Best gardening gloves for men
- Best gardening gloves for cactus
- Best gardening gloves for thorns
- Best gardening gloves for pulling weed
- Best gardening gloves for roses
And so on.
And for each of these questions, you would research and find the best 5-10 items out there, and create a list post where you list these options, and you link to where people can buy them (like Amazon for example), but through an affiliate link.
Like it is with this example site that has an article about the best gardening gloves for women.
And when someone comes in to your site from Google to read your list and chooses something to buy, they will click on the affiliate link to go to the retailer or merchant site and buy it.
And that’s where you get a commission from that merchant, which is usually a percentage of the price of the product.
And with these three simple steps, you can create a website that works and makes you money like TopCashback.com.
Interested, but Need Help in Starting Out?
If you are interested in creating a business that makes you money with the same model of Top Cashback, but you don’t know where to start from, then don’t worry!
I will lead you here to the place that will save you the time and headache, and will give you all of what you need in one place for an affordable cost, such as:
- A step-by-step affiliate business plan.
- A training course on performing the plan.
- Research tools to find opportunities for making money as an affiliate.
- 1-Minute site builder and premium hosting so that you don’t worry about the technical side.
- The most amazing online community of 2M+ entrepreneurs that are willing to help you whenever you need.
And this place is a platform that is called Wealthy Affiliate, which has been there since 2005, and that’s why it is the most trusted place to learn and start your affiliate marketing business.
And the nice thing is that although it is very affordable to join, especially that if you need to get ever resource or tool for the list above, but from separate places, then you will end up paying more than double the fees of joining this platform.
Even better, if you are not sure to join them or not, they offer a Starter membership that you can join now for FREE, and it will give you access to part of the tools and services, and will give you the first level of the training (10 lessons), which is enough to understand the business model in depth.
It’s up to you if you want to upgrade later or not, in order to unlock the advanced training, live webinars, advanced tools, …etc.
This is where to if you want to learn affiliate marketing the right way since the start.
Check out this detailed review of Wealthy Affiliate in order to learn more and see how to get the Starter membership at first!
I hope that this short article helped you understand how TopCashback makes money online without selling anything by the company that owns it.
This business model is my favorite and I encourage you to learn it through the resources in the previous section above, if you want to make money like TopCashback.com does.
If you still have any questions about anything mentioned in this article, please, tell me in the comments’ section below and I will be coming back to you asap 🙂