I am in the process of signing up to the Cashback websites world.

Here is a brief intro on what u do & get -

Set up a free account (don’t use any that require payment) with cashback sites such as Rpoint*, Quidco or Topcashback*, log-in and then click on the product you’re interested in. When you make a transaction such as buying something or signing up to a new credit or insurance policy, it’s recorded and you’re paid cash for doing so.

Its only based in UK thought although I am sure there are companies all over the world doing the same.

Why do they pay out?

In a way, cashback sites are actually advertising sites. They simply list product providers and retailers, and when you click through to these websites, they get paid for ‘providing leads’; the same way most web-adverts usually work. Yet with a cashback site, when you’re logged in, the revenue raised from your click is attributed to you so the site can pay you some or all of the money it receives.

The technology’s rather simple: ready-made paying links are available from ‘links warehouses’ such as Tradedoubler or Affiliatenetwork, which are primarily to allow normal website owners pick the adverts they put on their sites. These do all the liaison with the product providers; though the big cashback sites also have their own direct relationships, so they can offer a wider range of providers or earn more.

The Cashback Kings’ Winner: For those likely to use cashback sites a lot, or get products with large one-off payouts, it’s a close run thing between Quidco and Topcashback*.

Quidco has been the top player for a long time, as rather than giving you a portion of the amount it receives, you get it all, except for the first £5 each year, which it keeps. This usually means the payout per item is much higher. Yet now relative newcomer Topcashback is chasing its tail; while in the past it worked in a very similar way but paying a smidgeon less, now its ditched the £5 annual fee, so you get every penny; though it's early days so feedback is still limited.

Overall cashback regulars should join both and see who pays out the most each time. In fact, it is worth joining all the main sites (see below), because others can beat Quidco or Topcashback on occasion simply because they include different suppliers or having negotiated themselves larger commissions.

One final note, never count the cash as yours, until it’s in your bank account (Quidco and Topcashback will pay out either by bank transfer or Paypal). The sites that run on very fine margins especially tend not to have fool-proof tracking; things can and do go wrong, and it’s important you don’t spend the cashback until it’s actually paid to you.