Greasypalm
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Greasypalm is a UK reward website and one of the most successful of this type of business on the web.
Referral policy
Like many reward websites greasypalm operate a referral policy to create membership growth. Greasypalm is able to offer this incentive because it witholds roughly half of the money it receives from merchants for purchases made through its site.
For example, if a user purchases a mobile phone contract from the Carphone Warehouse by clicking on a greasypalm weblink, greasypalm receive £25 from the merchant (through the affiliate network) but only give half of this i.e- £12.50 to its members.
The business lacks transparency because no information is given regarding the level of commission. A user may recieve this commission themselves by opening an affiliate network account (for eg. tradedoubler Commission Junction, affiliate future) and make the purchase through their own affiliate links. The commission charge may also be avoided by using rival sites (for eg.quidco) that do not charge commission and hence often offer double the reward.
It's however, advantageous to use an established reward website as the larger userbase and higher the traffic, the greater success a user will have at resolving problems with the tracking of transactions.
Member and withheld earnings
The company slogan is "the site that pays you to shop", justified by total member earnings which at the time of writing are £2,743,207.68. However, if one takes the above into consideration this would infer that greasypalm has withheld £2,743,207.68 from its members over the years of its operation. It is true that some of this money would have been required for the successful operation of the site as goes with running any business. However greasypalm also receive traffic bonuses based on the amount of internet traffic they direct to merchants. These bonuses can be quite lucrative and more than cover the cost of operation.
External Links
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