The Consumer Forums

incrediblesulk · By BankFodder on 25th January 2009, 20:12

How price comparison sites work.

I know a little about this so i thought I'd share it.

Price comparison sites work by 'affiliating' with the businesses that actually sell the product. An affiliation is basically a partnership with a company whereby any purchase gives the seller a commission, usually a set price, sometimes a percentage.

Let's say John goes to Steve's website...

1. Steve's website compares car insurance.

2. When Steve set up his website he visited 'Tradedoubler.com' and affifliated with the big insurers.

3. John visits Steve's website and buys some car insurance.

4. Steve gets paid by that insurer.

Simple!

Some people might argue that an affiliate will push the product (in this example car insurance) that gives the most commission but in reality this would be business suicide because if the website got 'caught out' then the business would lose the trust that these type of websites rely on.
In reality it doesn't really matter what car insurance John chooses, Steve still gets paid.

This item is intended to generate discussion about comparsison sites but it also contains click-thru ads which may help towards our expenses.
If you would rather try them out directly then please go to their respective websites without clicking the icons below.

Everyone is trying to save money. It's a serious issue at the best of times. During the present creditcrunch, it is all a matter of survival.
Computer technology and the internet have allowed the development of comparison sites - each of which claim that they offer you the best overview of competing products and services so that you can find the best bargains for yourself without having to shop around.
Does it really work?
Only you can tell. Only you know what you are paying for at the moment and how much you are paying.
In an effort to play the comparison sites at their own game, we have brought a few of them together so that you can have a look at each of them and campare which ones really work.
If you do think that you have found any bargains, then let us know on the forum. We should also point out that if you do use any of these sites to reduce your costs, then we will get a small commission too - and we need it as our donations and booksales have plummeted - just like any other organisation at the present time.
Click thorugh to these comparison sites. See whether you could save on your present expenditure.
If you think that it's all nonsense, let us know. If you think that they are useful, we would all like to know about that too.

The Consumer Forums

How price comparison sites work.

Price Comparison sites