The Money-Making Secrets of Rakuten Uncovered
Are you curious as to how Rakuten, a renowned cashback and rewards website, turns a profit? Interestingly, Rakuten’s primary revenue model is affiliate marketing. In this article, we will demystify how the company makes money by offering discounts and cashbacks while also breaking down their varied monetization strategies.
Dive in to discover more about how Rakuten’s business model equates to success!
Key Takeaways
- Rakuten generates revenue primarily through affiliate marketing, earning commissions from clicks and purchases made by users on their platform.
- They also sell valuable marketing data to various agencies, providing insights into consumer behavior and trends.
- Rakuten’s internet services, such as Rakuten Viber and Rakuten Kobo, contribute to their earnings through subscriptions and ads.
- Their fintech offerings, including banking and insurance services, generate revenue through interest and fees.
Understanding Rakuten
Rakuten, an internet giant from Japan, primarily operates through affiliate marketing and has established itself as a significant player in the global e-commerce market. The platform connects online retailers with customers by offering cash back rewards and discount deals on everyday purchases.
When shoppers use Rakuten for transactions at online stores like Macy’s or Walmart, they receive a percentage of their purchase back in cash.
Belonging to Rakuten Group Inc., this company earned eye-opening revenue of $13 billion in 2021. Notably, members can earn cashback that ranges anywhere from 1-40%, depending on which businesses are participating.
They payout these enticing rewards every three months either via a paper check or directly to a PayPal account.
How Rakuten Works
Rakuten works by offering discounts and cash back rewards to its members when they make purchases through the Rakuten platform.
Rakuten discounts and cash back
Shoppers relish the opportunity to save money and earn rewards with Rakuten. The platform connects users to over 3,500 retailers including big names like Macy’s, Walmart, Target, and Kohl’s.
Each purchase made through this link earns a certain percentage back in cash. The discount varies from store to store but can be as high as 40%.
Rakuten’s cashback system is straightforward: shoppers select their preferred retailer on the Rakuten app or website and make purchases as they normally would. After completion of an online transaction at a partner site routed via Rakuten’s portal, cash back is attributed to the user’s account within a few days.
For those who prefer shopping at brick-and-mortar locations, linking credit cards to membership accounts extends these benefits offline too! Users will see their accumulated savings build up into what Rakuten calls ‘Big Fat Checks’, sent quarterly either by paper check or PayPal deposit.
Rakuten membership offers
Signing up for a Rakuten membership helps you navigate the world of online shopping with ease. As soon as a user becomes a Rakuten member, they gain access to cash back ranging from 1% to over 20% on purchases at numerous online stores.
The most appealing feature is that this vast array of cash-back opportunities includes both major retail brands and niche stores, making Rakuten service beneficial across varied shopping categories.
To ensure members never miss out on their cash back, Rakuten provides an easy-to-install browser extension available for Chrome, Firefox, Safari and Microsoft Edge. In addition to these advantages, there are in-store cashback opportunities requiring only that users link offers to their debit or credit card details.
Finally, the rewards earned aren’t locked away indefinitely; Rakuten distributes its “big fat checks” quarterly – these amounts can be received via physical check payments or PayPal transfers depending upon what suits the member best.
Rakuten’s Revenue Sources
Rakuten generates revenue through its internet services, fintech offerings, and mobile applications.
Internet Services
Rakuten plunges into the depths of innovative internet services to supplement its revenue sources. Positioned as a strong player in e-commerce, it operates an extensive marketplace portal catering to diverse customer needs.
Users flock to the platform for its vast online retailer’s website connections, including giants like Macy’s and Walmart. Expanding beyond shopping, Rakuten offers robust membership services that incorporate unique features adding value to each user interaction.
It leverages technology not just as an ecommerce platform, but transforms it into a holistic internet service space enhancing user experience while driving income streams.
Fintech
Rakuten’s FinTech group plays a significant role in the company’s revenue generation. Through its financial services, which include banking, credit cards, insurance, and digital payments, Rakuten is able to diversify its income streams.
The FinTech offerings provide customers with convenient solutions for their financial needs while also contributing to Rakuten’s overall growth and success. Interchange fees earned through these services contribute to the company’s revenue and help support its innovative internet services.
As part of its commitment to customer-centric approach and innovation, Rakuten continues to invest in expanding its FinTech capabilities. This ensures that it can offer robust membership services along with cutting-edge personal finance solutions.
By venturing into the world of finance and providing these essential services, Rakuten demonstrates its ability to adapt to changing market dynamics and stay ahead in an ever-evolving industry.
In conclusion: Fintech is a crucial aspect of Rakuten’s business model as it allows the company to not only provide comprehensive financial solutions but also generate additional revenue through interchange fees.
As part of the larger Rakuten Group, the FinTech group contributes significantly to the company’s overall success by offering innovative internet services supported by strong financial foundations.
So whether it is through cash back rewards or digital payment options, fintech plays a vital role in driving Rakuten forward in today’s competitive market landscape.
Mobile
Rakuten’s mobile app plays a crucial role in the company’s revenue sources. With millions of downloads, the app has become a key contributor to Rakuten’s success. Users can easily access their services on their mobile devices and take advantage of cashback rewards, discounts, promotions, and referral bonuses.
The mobile app provides users with a convenient platform to access special deals and offers while on the go.
Monetization Strategies of Rakuten
Rakuten employs various monetization strategies, including earning money from clicks and purchases as well as selling marketing data. Find out more about how Rakuten makes money by reading the full blog post.
Making money from clicks and purchases
Rakuten generates revenue by leveraging the power of affiliate marketing. Through their platform, they earn money from clicks and purchases made by users. When users start their online or in-store shopping through Rakuten’s website, app, or browser extension, Rakuten earns a commission from the participating businesses.
These commissions are based on various models such as pay-per-click, pay-per-sale, and pay-per-lead. By connecting over 3,500 retailers including popular stores like Macy’s and Walmart, Rakuten creates a win-win situation where users receive cashback rewards while Rakuten earns revenue from these transactions.
Selling marketing data
Rakuten also generates revenue by selling marketing data to various marketing agencies. This data includes valuable information about consumer behavior, preferences, and trends. By collecting and analyzing this data, Rakuten can provide insights that help businesses tailor their advertising campaigns and develop targeted marketing strategies.
This allows them to reach the right audience with the right product or service at the right time. Selling marketing data is a lucrative business for Rakuten, as it not only helps companies improve their sales and customer engagement but also enables Rakuten to monetize its vast user base effectively.
In addition to affiliate marketing commissions, Rakuten leverages the power of its extensive user database to offer market research services through selling marketing data.
Rakuten’s Earnings: A Breakdown
Rakuten’s earnings are a result of various revenue streams which contributed to its parent company, Rakuten Group, reporting a revenue of $13 billion in 2021. Here is a breakdown of their earnings:
| Revenue Stream | Contribution |
|---|---|
| Affiliate Marketing | Rakuten earns a commission on every click that leads to a purchase on the partner business’s site. This is a major contributor to Rakuten’s earnings. |
| Selling Marketing Data | By analyzing user data, Rakuten offers valuable market insights to businesses, which pays them for this data. |
| Internet Services | Internet services like Rakuten Viber, Rakuten Viki, and Rakuten Kobo contribute to Rakuten’s earnings through subscriptions and ads. |
| Fintech | Rakuten Card, Rakuten Securities, Rakuten Bank, and Rakuten Insurance also generate revenue through interest and fees. |
| Mobile | Rakuten Mobile contributes to revenue through subscription fees. |
How to Earn Money on Rakuten
To earn money on Rakuten, follow these steps:
- Sign up for a free Rakuten membership.
- Browse the Rakuten website or app for cashback offers and discounts from participating businesses.
- Click on a cashback offer or discount link to be redirected to the partner business’s website.
- Make a purchase on the partner business’s website as you normally would.
- After completing your purchase, Rakuten will track your transaction and credit your account with cashback rewards.
- Earn cashback rewards ranging from 1 – 40% of your purchase depending on the partner business.
- Accumulate cashback rewards over time and receive payouts every three months via paper check or PayPal deposit.
Rakuten’s Payout Options
Rakuten offers multiple payout options for users to receive their cashback rewards. These options include:
- Paper check: Users can choose to receive a paper check in the mail as their payout method.
- PayPal deposit: Users can also opt for a direct deposit of their cashback rewards into their PayPal account.
- Big Fat Check: Rakuten offers a unique option called the “Big Fat Check,” where users can receive their cashback rewards in the form of a physical check with the Rakuten branding.
- Store cash back: In some cases, users may have the option to receive their cashback rewards as store credit at select brick-and-mortar locations or online retailers.
The Catch with Rakuten: Understanding the Drawbacks
Rakuten may seem like a great way to save money, but it’s important to understand the drawbacks before diving in. One major downside is that not all online stores are partnered with Rakuten, so you might miss out on cashback opportunities for your favorite retailers.
Additionally, the payout process can be slow and cumbersome. While Rakuten offers multiple payout options like PayPal or a paper check, it can take up to three months to receive your earnings.
Another drawback is that Rakuten memberships expire after one year of inactivity, so if you’re not consistently using the platform, you could lose any accumulated rewards. Lastly, some users have reported issues with tracking their purchases correctly, which means they don’t receive the expected cashback amount.
It’s essential to keep an eye on your account activity and reach out to customer support if you encounter any problems.
Despite these drawbacks, understanding how Rakuten works can help you maximize its benefits while minimizing potential downsides.
Conclusion
Rakuten’s primary source of revenue is through affiliate marketing. They earn commissions by partnering with businesses and utilizing pay-per-click, pay-per-sale, and pay-per-lead models.
Additionally, Rakuten sells marketing data to further monetize their platform. With these strategies in place, Rakuten successfully generates income while providing cashback rewards and discounts for its users.
