Microsoft's 'Cashback' only first of many Live Search incentive programs

By Jacqueline Emigh | Published May 22, 2008, 7:15 PM

Microsoft plans to follow the Live Search Cashback service announced this week with a series of other new features designed to draw more traffic, to be rolled out every spring and fall.

"'Cashback' will be the major new release for this spring," a Microsoft spokesperson told BetaNews today, during a press event in New York City.

Microsoft Chaiman Bill Gates announced Cashback yesterday in Redmond, Washington, at the Advance 08 conference for online advertisers.

But at a multivendor press event today in Manhattan, focused mainly on providing press previews of products for the 2008 December holiday season, Microsoft showed journalists how Cashack rewards people who use Live Search for online shopping with cash refunds on part of the price of items purchased.

"These refunds are coming directly from Microsoft, not from the companies selling the products," pointed out the spokesperson.

As previously reported, Microsoft has consistently landed in third place behind industry leader Google and runner-up Yahoo in search engine rankings compiled by analyst firms such as Comscore.

In recent weeks, Microsoft officials have articulated the need to build up the company's online search and advertising capabilities as a top priority, regardless of whether Microsoft pins down some sort of a deal with Yahoo.

At the press event in New York City today, BetaNews asked the spokesperson why Microsoft has now decided to give cash refunds to online shoppers. Previously, the company offered prizes for those who played games on Live Search Club that indirectly led to more Web searches.

"As Bill Gates said yesterday, Microsoft wants to create customer loyalty for Live Search," we were told.

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I personally don't like this Google is big but in the long run Microsoft is bigger and has a nasty problem of driving the competition away aka making them go under like they did Netscape.

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Netscape was its own undoing. Its product really started to suck, rather than innovate. I don't think people went to IE because it was all that much better, but because they started to realize it wasn't as bad compared to netscape (this isn't saying much.)

All in all, you can blame Netscape for Netscape's failures. Alternative browsers from Mozilla, Apple, Opera seem to be doing fine.

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Bingo.

Netscape had zero direction, useless management, and no communication. It's imploded from sheer lack of organization and structure.

The employees couldn't get away from the wreckage fast enough...

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Softie.
Perhaps, a more appropriate analogy would be "this is like my intellect", somewhat like the worm Oroburus!
Think about it duck!

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Not just giving away money but building a system with the on-line vendors to identify conversions from Live Search.

Makes sense, if all you want to do is attack Google's revenue stream.

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I believe this can work. In fact I hope so - Google could do with some real competition. Ultimately how do you distinguish one search provider from the other if the UI is the bare essentials and it gives the answers you are looking for.

I am sure if MSFT really commit to beefing this up they can buy the know-how to deal with the 2nd and the 1st seems simple enough. Now comes marketing where you need to (a) raise user awareness and (b) break old habits.

They do this by exploiting greed. This will definitely work in the US where bargain hunting is a passion and a whole industry relies upon it. Nobody here pays MSRP. Ever. I am not sure they have an intention to roll this out to other markets anyway... Heck why should you pay 5% more for that Sony PS3 (not selected by accident) just because you found it via Google instead of Live.

But I understand the outcry. You sense this will work and you fear MSFT will gain traction. This also means you are of the young entitled generation with no real problems so you select MSFT as the stereotypical enemy (who to be honest you passively benefited from...). Who cares about Google/Yahoo/MSFT once it is a transparent commodity.

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Preinterpost,
Hey boy, ya bedda watch yaself, Soft Tool 'n his acolytes are the resident feral MSFT snake oil grifters, ya steppin' on they're territory.
"I believe this can work. In fact I hope so - Google could do with some real competition."
Ya goose, ya wanna expand MSFT's reach even further, ya gotta bar code tattooed on ya noggin fool?
Frankly, stupid, have MSFT had an original idea/business model in the last 15 years?
Dumb, dumb, dum!!!

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Who cares if it's original. Business is driven by success, regardless if original or not. If you want original (contrary to mass appeal) look somewhere else than the US. Might be difficult for ya considering the 'accent'...

*sigh*

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Why not just call it "Live Search Fraudsystem" and have done with it?

Whatever people think of Microsoft, the brand has always stood for a certain quality. This seems to be a cheap tatty plan.

For a start, if it were a great idea then someone else would have done it already, surely? That is the Microsoft way...

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This looks suspiciously like throwing money at a problem instead of thinking things out.

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Cashback from the Cashack, I'll take it.

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Ima****wit,
Get thee behind my munificence, for I am the "Lord", 'an we know you'll take anything!
You'll havta wate ya time but, 'tis a LONG way to go!
Geez! Mention cash an it brings out the wh***s!

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..your medication seems to be wearing off.

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Seems to be?

Zaine should take advantage of some of that social welfare he's suckling on for some meds.

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I see fraud, and lots of it, in Microsoft's future.

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Lesson learned from ancient times is that when the centurions no longer received their pay, their loyalty like the roads leading to Rome turned to mud.

Perhaps in immoral markets, buying loyalty is equated to earning it.

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