Microsoft Resorts to Paying People to Use Windows Live Search Engine
Microsoft Resorts to Paying People to Use Windows Live Search Engine
by , 8:45 AM EDT, May 22nd, 2008
It's no secret that Microsoft has been struggling to get folks to use its Windows Live Search search engine, but Big Redmond is now ready to go so far as to pay people to do so. The company announced Wednesday that it will offer users a rebate if they'll just buy merchandise being advertised on search results pages.
The company made the announcement at advance08, an annual advertising event the company holds for its clients. Companies participating in the cash rebate program include eBay, Barnes & Noble.com, Overstock.com, Sears, Zappos.com, and WPP, and executives from these companies joined Chairman Bill Gates on stage to announce it.
All told, there are some 700 companies participating, and Microsoft said this includes 13 of the top 40 retailers. Users who sign up for the program will reportedly have access to some 10 million products.
The new program comes as Microsoft has heretofore been unable to entice Yahoo! into agreeing to be bought, another one of the company's solutions to the problem of being a distant third to Yahoo! and Google. With Google, in particular, seeing enormous success from its own search-related AdWords, Microsoft is hoping that if they pay people, some might be willing to use Windows Live Search.
The program has been dubbed Windows Live Search cashback, and it works as follows: Merchants pay Microsoft when users who have signed up for the program complete a transaction (i.e. buy something) through Windows Live Search. That fee is percentage based, and Microsoft will directly rebate that fee back to the user. The company did not offer the details on what those percentages are.
Observer Comments
I was planning to buy a laptop from circuit city for $2000 and now I can go through microsoft and get $60 cash back. $60 is a free money to me. Thanks Microsoft for helping consumers. In days when companies like Apple dictate buy phone from us, service from our partner, songs from us and accessories from us and keep telling that don't give ur dollars to any one else, Microsoft has decided to help consumers by giving them free money.
This is actually a very interesting business play. The generic question is what does a challenger have to do against a market incumbent that is winning with the free business model. In a podcast with Russ Roberts (EconTalk), Wired editor Chris Anderson discussed lots of ways that challengers can take the free model up against pay-for incumbents. This Microsoft gambit seems to be trying one of the tricks. They don't have to get everybody, in fact, they probably don't want everybody right away. They just need to get a large enough audience that they can change the expectation of the game, so entrenched players (Google) have to follow suit. And then they regain first mover advantage.
Thu May 22, 2008 1:50 pm Subject: Re: Thanks Microsoft for the free money.
QuoteAnonymous wrote:
I was planning to buy a laptop from circuit city for $2000 and now I can go through microsoft and get $60 cash back. $60 is a free money to me. Thanks Microsoft for helping consumers. In days when companies like Apple dictate buy phone from us, service from our partner, songs from us and accessories from us and keep telling that don't give ur dollars to any one else, Microsoft has decided to help consumers by giving them free money.
Ummm.... Yeah. Right. If you think this is about helping consumers, you are quite mistaken. This has to do with gaining market share. The fact that it might benefit a consumer in some way is incidental.
Thu May 22, 2008 6:58 pm Subject: Unnecessarily harsh article.
Quotecomputerbandgeek wrote:
It is mildly entertaining that Microsoft is paying customers to use its product, but the tone of this article is way to harsh and fanboy-ish for something that is actually a very interesting and cutting edge idea! I am dissapointed.
...Which is why you can point that out in the forum.
Love them or hate them, this is an interesting play for MS. Time will tell. I think that "Guest" is a little disillusioned. It isn't free money. Nothing, ever, is free. MS is giving a credit to his account online. He cannot get physical cash in his pocket. So, the credits in the form of dollars, stays online and associated with MS. And now, MS has hooks into your purchasing habits etc. Not sure if I want to tell them what I purchase etc.
BUT, I do think it is an interesting business plan. Time will tell.
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