Microsoft's new tack: Bribery as a business model

So the news is leaking out fast: Microsoft plans to lure users by dangling cash rebates to people who buy stuff using the company's search. Will it work? At this point, I suppose it can't hurt--though no doubt Microsoft is leaving itself open to being ridiculed as a Delancey Street hondler.

Arnold Zafra over at Search Engine Journal wrote that he "cringed" when he heard about the news. Ouch.

A couple of thoughts:

This isn't the first time that Microsoft has tried something like this. As CNET News.com's Ina Fried noted Wednesday:

It has run a number of programs including its Live Search Club that offer rewards for those that use its search. The Live Search Club effort briefly boosted Microsoft's search market share last year, but the gains have proved short lived. Microsoft has been losing ground since then and has returned to a single digit share of the market.

But truth be told, it's not the worst idea. What's the harm in giving it a shot? In a recession--or whatever you want to call the current economic malaise in the United States--consumers are open to bribes (oh, I forgot: rebates). So why not see if this strikes the people's fancy? But this is only a holding action. The reason more people use Google's search is the user experience. It works better, so they keep returning. Microsoft CEO Steve Ballmer knows this. That's why he still thinks making a move for some of Yahoo's assets makes sense. He's anxious about staying pat with Microsoft's current search hand and wants to fix things, either through developing technology internally or buying it on the open market.

No way this is the final word.

[ancre007]

Aren't reporters supposed to be objective? I think this is a stupid move by MSFT, but calling it 'bribery' shows more about the reporter's biases than the actual merits/de-merits of the program. My Discover card gives me cash back. I have not heard anyone call that bribery. Please try to be honest if you want to be a credible journalist. Or go do something else.

[gary85739]

Business has used the "bribery" method since time began!

Ever hear of "lobbyist"?

[grindsmygears]

Before people start posting comments about what I wrote, I want to set the record straight, I AM NOT A MICROSOFT SUPPORTER and DON'T LOVE/HATE GOOGLE EITHER.

Where was this author when Google started peddling its Google Checkout service. Buy using Google checkout and get $10 off the sub-total. Isn't this the same. I hate when reporters (if you can call him that) are biased about what they write and definitely out of context.

[jessiethe3rd]

HONESTLY...
If you are not the leader and you want to become the leader why not incent people to use your service back giving the money back that they make from the search!? You can laugh at them if you want but I'll be laughing right to the bank with the money I make back while the rest of people are busy ridiculing them.

[grindsmygears]

An example of a more objective and unbiased article on this topic that CNET needs to learn from.

http://bits.blogs.nytimes.com/2008/05/21/microsoft-searching-for-users-with-rebates/index.html?hp

[mmichaels]

Well, I suppose if "Arnold Zafra" doesn't like it, it must be trash. That guy's bigger than Bill Gates isn't he?

[eadeguzman]

I hope that News.com would reserve these kinds of articles under an Opinions and Editorials section -- so that it's clear that it's not news but more of a a commentary.

More like a personal blog to me than a regular news article.

[sal-magnone]

This isn't new. Previous search engines have tried this. Remember that one that had a 'prize' every day (a couple of $K)?

In a cinsumer space expect consumer hokeyness (is that a word?).

[wolivere]

Is this one of those news articles that are ment to not have meat? And just draw eyes?

Lets see rebates on cars? Cash back on Mortages car loans? Coupons at grocery stores? Cash back incentives at Best Buy?

Google Yahoo have used similar systems?

Heck is not googles entire existence based upon advertising click model funding? Pass through ???

Sort of at awe with this article... wait I'm not in awe at all. I think the only reason I come to this site now and then is to see this kind of crap to remind me what good news is all about.

This site is more like a tabloid then a news site now... all eye catching headlines with no meat or substance with a ton of FUD and SPIN to please corporate sponsor'...

[eadeguzman]

Thanks for removing this "article" from the main page. "Bribery" is a very strong word that could possibly expose News.com to a lawsuit for slander.