Introduction to Rakuten
When it comes to shopping, there’s nothing quite like getting a good deal. And if you’re someone who loves to shop but hates to pay full price, then Rakuten might well be your new best friend.
In this article, we’ll give you a rundown of exactly what Rakuten is and how it works, as well as explore the different ways you can make money with this popular shopping rewards program. What is Rakuten?
Rakuten is an online shopping rewards program that offers customers cash back on purchases they make through the platform. Originally founded in Japan in 1997, Rakuten has since expanded to the US and other countries, becoming one of the largest e-commerce websites in the world.
The company partners with thousands of retailers and brands across a wide range of categories, from beauty and fashion to tech and home goods. How does Rakuten work?
When you sign up for Rakuten, you’ll be given access to a range of different shopping perks. These include:
Cashback rewards: Perhaps the most significant benefit of using Rakuten is the cashback rewards it offers.
Essentially, every time you make a purchase through the Rakuten platform, you’ll receive a percentage of that purchase price back in the form of cash. This cash can then be redeemed for cash or gift cards.
Discounts and promotions: Alongside cashback rewards, Rakuten also provides customers with access to exclusive discounts and promotions. These can include things like free shipping, buy-one-get-one-free offers, and limited time deals.
The cashback button: One of the most helpful features of Rakuten is its browser extension, often referred to as the “cashback button.” When you download and install this extension, it will automatically notify you whenever you’re shopping on a Rakuten partner site. It will also give you the option to activate cashback rewards, ensuring you never miss out on savings.
Linking credit card: In addition to online purchases, Rakuten also allows you to earn cashback on in-store purchases made using a linked credit card. This means that even when you’re shopping in brick-and-mortar locations, you can still rack up rewards and savings.
Rakuten Cash Back Visa Credit Card: If you’re a frequent Rakuten user, you may want to consider signing up for the Rakuten Cash Back Visa Credit Card. This card comes with extra rewards and incentives, including the ability to earn double cashback on all Rakuten purchases.
Referral bonuses: Finally, Rakuten offers a range of referral bonuses. This means that when you refer friends and family to the platform, you’ll receive a bonus payment for each person who signs up and starts shopping via Rakuten.
This can be an excellent way to build up your rewards quickly and spread the word about this popular shopping program.
Making Money with Rakuten
With all these features, how can you make money with Rakuten? Below, we’ll explore some of the best ways to maximize your savings and rewards potential:
Cashback rewards: The simplest way to make money with Rakuten is through its cashback rewards program.
You’ll earn a percentage of your purchase’s value back in cash, which you can then redeem for cash or gift cards. Over time, these rewards can add up to significant savings.
Discounts and promotions: Alongside its cashback rewards, Rakuten also offers a wide range of exclusive discounts, promotions, and limited time deals. By taking advantage of these, you can stretch your dollars even further and find great deals on your favorite brands and products.
The cashback button: The cashback button is an excellent way to ensure you never miss out on cashback rewards, even when you’re shopping online. By downloading and installing this browser extension, you can set up automatic notifications and receive reminders whenever you’re on a Rakuten partner site.
Linking credit card: If you frequently shop in-store, linking your credit card
to Rakuten can be an excellent way to earn cashback on these purchases. You’ll be able to rack up rewards and savings even when you’re not shopping online.
Rakuten Cash Back Visa Credit Card: For those who use Rakuten frequently, the Rakuten Cash Back Visa Credit Card is an excellent choice. This card allows you to earn double cashback on all Rakuten purchases, and it comes with a range of other rewards and perks.
Referral bonuses: Finally, making money with Rakuten can be as simple as referring friends and family to the platform. Every time someone signs up and starts shopping via Rakuten, you’ll receive a bonus payment.
This can be an excellent way to build up your rewards quickly and boost your earnings potential.
Conclusion
Overall, Rakuten is an excellent way to save money and earn rewards while shopping online. With its cashback rewards program, exclusive discounts and promotions, and range of other benefits, it’s easy to see why so many people have become fans of this platform.
Whether you’re a frequent shopper or just looking for ways to stretch your budget, Rakuten is definitely worth considering. So why not sign up today and start earning some extra cashback rewards?
How Rakuten Makes Money
With its generous cashback rewards program and range of other benefits, Rakuten is a popular choice for anyone looking to save money while shopping. But have you ever wondered how Rakuten makes money?
In this section, we’ll explore some of the ways the company generates revenue and stays profitable.
Affiliate marketing
One of the primary ways Rakuten makes money is through affiliate marketing. Essentially, Rakuten acts as a middleman between merchants and customers, earning a commission every time a customer makes a purchase through the platform.
This commission can vary depending on the merchant and the product, but typically ranges from around 2-10% of the purchase price. Rakuten uses a variety of different commission models to earn money through affiliate marketing, including pay-per-click, pay-per-sale, and pay-per-lead.
In pay-per-click, Rakuten earns money every time a customer clicks on a link to a merchant’s site through the Rakuten platform. In pay-per-sale, Rakuten earns money only when a customer makes a purchase through the platform.
In pay-per-lead, Rakuten earns money every time a customer fills out a lead form on a merchant’s site.
Selling marketing data
In addition to affiliate marketing, another way Rakuten generates revenue is by selling marketing data. Through its various tracking technologies, Rakuten collects data on customer behavior and preferences, which it can then sell to advertisers looking to improve their ad targeting.
This data can include things like which products customers are browsing, how much they’re spending, and even demographics and location data. By selling this data to advertisers, Rakuten is able to generate significant revenue streams while still maintaining its customer-focused approach to shopping rewards.
Rakuten’s revenue
So how much money does Rakuten make? According to its 2020 financial results, the company generated over $13 billion in revenue, a 7.9% increase from the previous year.
The majority of this revenue (over 70%) came from Rakuten’s e-commerce operations, including its various online marketplaces and affiliate marketing programs. While Rakuten’s overall revenue increased in 2020, its net income actually decreased, from just over $1 billion in 2019 to just under $147 million in 2020.
This was due in part to ongoing investment in new business ventures, as well as the global economic impact of the COVID-19 pandemic.
Rakuten Payouts and Donation
Finally, let’s take a closer look at how Rakuten pays out rewards to customers and what options are available for donating through the platform. How does Rakuten pay rewards?
Rakuten offers several different payout options for customers, depending on their preferences. These options include:
– Paper check: Customers can receive their cashback rewards as a physical paper check sent to their mailing address.
– PayPal account: Customers can also choose to receive their rewards as a deposit into their PayPal account. – Gift cards: Finally, customers can elect to receive their rewards as gift cards to a range of popular retailers and brands.
Cash Back for Change program
In addition to offering rewards to customers, Rakuten also has a program for customers to give back to charitable organizations through its
Cash Back for Change program. This program allows customers to donate their cashback rewards to a range of different non-profit organizations, including those focused on environmental causes, disaster relief, health and wellness, and more.
Customers can choose to donate a portion or all of their cashback rewards to these organizations, helping to make a positive impact with their shopping habits. Rakuten also partners with these organizations directly, allowing customers to make donations outside of their cashback rewards as well.
Conclusion
By using affiliate marketing and selling marketing data, Rakuten is able to generate significant revenue while still providing excellent benefits to its customers. And with its range of payout options and charitable giving program, Rakuten is not only helping people save money but also giving customers the ability to support causes they care about.
FAQs About Rakuten
As a popular and widely used shopping rewards program, Rakuten has inevitably sparked questions and concerns from consumers. In this section, we’ll address some of the most common FAQs about Rakuten, including its legitimacy, partnership with Amazon, and taxation of rewards.
The legitimacy of Rakuten and how it works
One common question people have about Rakuten is whether the program is legitimate or a scam. Rest assured, Rakuten is a legitimate company with a long-standing history and positive reputation.
Founded in 1997, Rakuten has expanded globally and is known for its reliable cashback rewards program and trusted partnerships with major retailers and brands. In terms of how Rakuten works, it’s quite simple.
When you make a purchase through the Rakuten platform or activate cashback rewards on a partner merchant’s site, Rakuten earns a commission from the merchant. Rakuten then shares a portion of that commission with the customer in the form of cashback rewards, which can be redeemed for cash or gift cards.
It’s a win-win situation for both the customer and Rakuten. To ensure that you receive your cashback rewards, make sure to activate them before making your purchase.
You can do this through the Rakuten website, the browser extension, or the mobile app. If you forget to activate cashback rewards, you may miss out on valuable savings.
Rakuten and Amazon partnership
Another frequently asked question about Rakuten is its partnership with Amazon. Many people wonder if Rakuten is endorsed by or affiliated with Amazon in any way.
While Rakuten and Amazon do have a partnership, it’s important to note that Rakuten is an independent company and not owned or operated by Amazon. The partnership between Rakuten and Amazon allows customers to earn cashback rewards on purchases made through the Amazon marketplace.
This means that even when shopping on Amazon, you can still earn valuable cashback rewards through Rakuten. To earn these rewards, simply make sure to activate them before making your purchase.
It’s worth noting that not all Amazon purchases are eligible for cashback rewards through Rakuten. Items like Amazon gift cards and certain digital products are typically excluded.
However, the majority of items sold on Amazon are eligible for cashback rewards through Rakuten, making it a great way to save money while shopping on the site.
Taxes and Rakuten rewards
Finally, some people may wonder if they need to report their Rakuten rewards as taxable income. The short answer is yes, Rakuten rewards are taxable.
Any rewards earned through Rakuten should be reported as income on your tax return. However, it’s important to note that there may be some exceptions.
For example, if you redeemed a Rakuten reward for a store credit or gift card, you may not need to report it as taxable income. Additionally, if you used Rakuten rewards to offset the cost of a business expense, you may be able to deduct the cost on your tax return.
It’s always advisable to consult with a tax professional if you have questions or concerns about how to report your Rakuten rewards on your tax return. However, in general, you can expect Rakuten rewards to be treated like any other form of income for tax purposes.
Conclusion
As a popular shopping rewards program, Rakuten comes with its fair share of questions and concerns from consumers. However, by understanding its legitimacy, partnership with Amazon, and taxation of rewards, you can make informed decisions about how to use the program to your advantage.
Whether you’re looking to save money while shopping or give back to charitable causes, Rakuten can be an excellent tool for achieving your goals. In this article, we’ve explored various aspects of the popular shopping rewards program Rakuten.
We started by discussing what Rakuten is and how it works, as well as the different ways customers can make money through the program. We also delved into how Rakuten makes money, including its affiliations with merchants and its marketing data sales.
Additionally, we addressed common FAQs about Rakuten, including its legitimacy, partnership with Amazon, and taxation of rewards. Overall, this article demonstrates how Rakuten can help consumers save money and contribute to charitable causes, while also generating revenue for the company.
Whether you’re a frequent shopper or just looking for easy ways to stretch your budget, Rakuten is definitely worth considering.