How Does Swagbucks Work?
If you are reading this article, chances are you don’t know much about Swagbucks. Well, because of that, let me tell you a little about what Swagbucks is. Swagbucks is an internet marketing search engine where you can get paid for doing simple tasks like shopping on specific sites, answering questions by taking surveys, searching the web through their search engine (Swagbucks Search), and many other ways. If you want to know more about how to earn money on Swagbucks than check out Swagbucks; the Ultimate Review. However, if you're here more to answer the questions, “How does Swagbucks work?” you’re going to want to keep reading.
For starters, let's talk about how it works from a users standpoint.
Signing up on Swagbucks is quick, easy, and painless. All they need to set you up as a member is an email address to set up an account.
Once you are a member, you can start earning Swagpoints, which you can redeem for money, giftcards, and other rewards by answering survey questions, completing daily tasks, and participating in offers.
Mombers are allowed to cash out their earning once they have reached a certain amount of Swagpoints in their account.
How Swagbucks Pays Members
Now that we know a little about how it helps you earn money, let's talk about how it makes the necessary funds to be able to reward its users. To dive into that question, you should understand that Swagbucks is a two-sided network. It connects users to businesses to perform actions that benefit that business. Basically, users are small contract workers for companies, but the work is simple things like taking surveys or searching on their sites.
How Does Swagbucks Make Money?
Since Swagbucks is helping businesses connect with their members, they charge a fee to be on their site. They act as the middleman between advertising companies, marketing companies, and consumer product companies, and in turn receive money from these kinds of companies. On top of that, they buy reward items in bulk, which, if you’ve ever been to a Costco or Sams club, means a lower price. Therefore, they can give away items, yet still, make a profit.
Another way they churn a profit is through cash-back shopping. Although they are giving you money back on a sale, they are receiving a higher percentage of what they give you from the company that they are offering cash-back deals on. Say for example a company like Nike wants Swagbucks to sell their newest shoes on their site. Nike would then give Swagbucks something like 10% of the sale, as a thank-you for helping sell these shoes and giving them customers. Swagbucks would than give 7% cash-back to the member who purchased the shoes, but be able to keep the remaining 3%, get it? This money all gets put into their system, either into the profit bank account, or their rewards to members bank account.
Why Is This Important?
It is important to understand how Swagbucks makes money because it alleviates the thoughts of “Is This Legit?” Now that you know Swagbucks has an “income” you can see how they can pay their members.
Is This A Scam?
You may be asking yourself if Swagbucks is making money, aren’t they just scamming their members to pad their bank account? This is a common theory among people because a good businessman always asks, “What are they getting out of this?” Well, for Swagbucks, there is money in it for them. However, they are in the business of making their members happy. The only way they can continue to make money is if their members are making money. If they have no members, businesses will not want to give them their business. Therefore, Swagbucks makes sure that their members are getting paid enough to complete tasks, answer surveys, and do other promotional offers, in order to ensure that they continue to be members.
Swagbucks is a brilliant website, and their founders have built up a very successful website. They not only make their own money, but they also can afford to pay out their members a large sum of money while doing so. Although you may just make a couple of dollars every day, they have thousands of members that are all making that. It is clear to see that if Swagbucks wanted to scam people, they would not pay them, but that in turn would cause them to lose business.
Now that you can see how they make money, it is easy to see why they are still running; they pay their members. With that said, go on Swagbucks, and check out how easy it is to become one of the thousands of members that earn money each day on Swagbucks.