Yes, it’s true. Bing is flushing it’s cashback program effective July 30, 2010. While some believed that nobody could compete with the likes of Bing, it turns out it was Bing who couldn’t compete with the likes of “us”.

A program update was posted late last week which reads as follows:

Dear valued cashback customer:

We are writing to notify you that the Bing cashback program will be discontinued, and the last day to earn cash back on your Bing Shopping purchases will be July 30, 2010.

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Thank you very much for being a loyal cashback user. We remain committed to delivering great value to our customers, and we are currently working on an exciting new program which you will hear more about from us later this summer.

Sincerely,

Bing cashback Team

WOW! Just WOW!

I guess Bing wasn’t a better alternative after all. (Although, some will never admit that.) Others, who have been using the program appear to be extremely upset.

So why couldn’t the almighty Bing pull this off? Couple of reasons come to mind – but what it boils down to is that Bing was the wrong model all the way around.

First, Bing was throwing money at this – taking (in part) their advertising revenue and offering it up as cash back to customers. Great ROI for stores and a good deal for customers – but very bad for Bing. I have no idea what possessed them to make such a bonehead move, but it cost them a ton of money.

Internet advertising is one of the largest shifts in spending (and therefore wealth) we could see in our lifetime. I wrote about this transfer of wealth back in April and linked to reported profits in the billions for Google, and how Yahoo doubled its yearly revenue via online ads. The amount of money being spent right now in online advertising and pay per click revenue is the single biggest reason why I got involved with MyShoppingGenie.

Not Bing – they gave it away, and because they’re trying to catch up with the other two leaders, the easiest person to screw here is their own customers.

Bing is currently in third place behind Google and Yahoo – Google handles 71% of all search queries in the United States, while Yahoo handles around 15% and Bing around 9%. What’s even worse is that the few customers who did switch from Google over to Bing for the cash back option will most certainly switch back over to Google come July.

And what did Google do as an alternative to cashback to customers? They got involved in the Affiliate Network boom providing a link between advertisers and publishers who want to increase sales and drive leads through affiliate marketing. (Hummm – kind of sounds like another company I know…) Those who can advertise and sell on their own now earn the commissions from the retailers – a much more savvy and business minded clientele for Google. While Bing (Microsoft) has alienated and ticked off even more people, just watch how Google will become an even bigger player in online search and Internet advertising because of it.

Second, early adoption like shopping online is driven through referrals, not a search engine. Currently, only 10% of all shopping is done online. While that number will most certainly grow, it’s going to be driven by word of mouth, not advertising. Companies like Commission Junction, LinkShare, and even Google’s Affiliate program are thriving right now because every day people are promoting the products – not some search engine.

Don’t believe me? Go take a look at ClickBank and the money they pay out to every day individuals. There’s a “payout calculator” on the top right hand corner of the web site. Every one of their products are digital, and none of them are offered through big box retailer – and every bit of it generated through links and word of mouth by everyday people like you and me.

e-Bay is another powerhouse that’s done completely online, generating more revenue each year than the entire MLM and Direct Sales Industry COMBINED. None of it generated by a big name retailer – but by everyday people – and some make 6 figures a year doing it. The vast majority e-Bay’s popularity wasn’t generated through traditional advertising dollars either – but through word of mouth.

That’s a sales force that big corporations can’t compete with. It’s why Network Marketing and Direct Sales have worked over the last 120 years. It’s far more intimate and personal than a big powerhouse like Bing – especially when you combine Social Media into this mix.

Our world is changing at a rapid pace because of the internet – and so are our buying habits. For those who want to get involved and capture a part of it – now is the time to get to work. (It’s not going to just come to you – you’ve got to act and work for it.) Those who get that will thrive and profit.

Those who don’t…well, they’ll be left with more egg on thier face because they haven’t a clue.

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Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812

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Tags: Bing, Cash Back, MyShoppingGenie, ZamZuu

This entry was posted on Wednesday, June 9th, 2010 at 6:00 am and is filed under Home Based Business, MyShoppingGenie, Network Marketing, ZamZuu. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.