Microsoft’s Plan C: Cash Rebates for More Traffic

May 22nd, 2008 at 12:00 am

Live SearchIt seems that Microsoft is trying to move forward after failing to acquire Yahoo. Although there has been news of renewed talks between both tech giants going around, Microsoft have recently unveiled what is considered to be its Plan C in its mission to share a bigger piece of the online search pie- cash rebates for Live Search users.

.When Microsoft’s plan to bid for search engine giant Yahoo went kaput, people were looking forward at what the software giant’s Plan C would be. Microsoft’s Plan A in the battle for eventual online search supremacy was to go at it alone with its own Live Search engine. Microsoft has acknowledged that this plan became troubled after some time.

The software giant then resorted to Plan B which was the recent plan to acquire Yahoo by offering their $47.5 billion bid for the 2nd most popular search engine in the world. And since that plan also failed, a lot of people in the tech industry have been eagerly awaiting Microsoft’s Plan C. And that next plan is offering cash rebates for people who make purchases after using its Live Search engine.

The new cash back program by Microsoft was unveiled this week offering cash rebates to online shoppers for making successful online purchases using its Live Search engine. Once an online user signs up for an account under the cash program on Live Search, they get to earn cash rebates as a percentage of every successful online purchase they make on Microsoft’s Live Search cashback site. This cash rebate will be deposited on the online user’s account and can be redeemable as cash via PayPal once it reaches $5.

Microsoft reports that the cash rebates are funded by a percentage of the money that it collects from its advertisers. And so far, more than 700 merchants have listed their products on the Live Search cashback website.

In a speech made by Microsoft’s chairman Bill Gates, he said that the new cash back program will help boost the users of Live Search for shopping. On a grander scale, he believes that it will eventually change the economics of the search engine advertising market where advertisers would shift from the "pay per click" method to paying instead for each successful purchase made on their ads. Through the program, Microsoft hopes to change the balance of power on the online search market. If its efforts hopefully succeeds, Microsoft believes that more advertisers would try to transfer a bulk of their advertising in such rebate programs.