Is Live Search Cashback a game changer?

I was listening in on a conference call this morning where the folks from Search Engine Watch lavished praise on Microsoft's Live Search Cashback program.

"I think it is potentially a game changer," said Search Engine Watch's Kevin Heisler, speaking on a call organized by investment bank Collins Stewart. "It's really I think a brilliant move by Microsoft, Bill Gates, and his team."

Later in the call, Heisler went a step further, suggesting that the program could even be bigger than the government's economic stimulus program, in which most taxpayers are receiving a $600 check.

"Microsoft has potential to make an even bigger impact on the economy if this takes off," he said.

Hmm. That seems like a very bold prediction, especially since there is still so much that is unclear about the program. First and foremost, how does Microsoft make money at this?

As I noted early on, Microsoft is giving back to consumers 100 percent of the money it gets from advertisers once a sale is made. So, for now, Microsoft's plan is to benefit indirectly from the program--ideally by grabbing searchers and advertisers that are currently going to rivals.

But after talking further with people involved in the program, Microsoft apparently doesn't see that as a permanent promise. The company may at some point change that, taking a cut from the rebate and thereby creating an entirely different business proposition for itself.

[top8]

In my humble opinion, this is plain stupid, and important-talking experts are naked kings. Google owns world search, and it costs too much to buy. People may find it on Google, then buy it through MS, but they will only use MS search to get the discount. The flurry of steps points to desperation. MS might as well hire an army of people to classify 8 billion web pages, as a strategy to outdo Google search.

[top8]

In my humble opinion, this is plain stupid, and important-talking experts are naked kings. Google owns world search, and it costs too much to buy. People may find it on Google, then buy it through MS, but they will only use MS search to get the discount. The flurry of steps points to desperation. MS might as well hire an army of people to classify 8 billion web pages, as a strategy to outdo Google search.

[amarkj]

That's the whole point... people won't click Google ads and the ad revenue would go to Microsoft!

[bpack]

well, let's see....iwon and cybergold tried this in web1.0 ....dotbomb! This just shows how desperate MSN is in the area of search. How about building some unique functionality, creative interface and better search experience. Game changer? more like 2 minutes left in the game Google 72 - MSN 6

[Super2online]

I think it will take a quarter or two to get the word out about this option, but I agree that within 6 months Microsoft could easily see a 5-10% improvement in position. The real question, is what will they follow this up with? It certainly cannot be the end game!

[ThugDragon]

this isn't that different from google giving $10 cash back for first time users of google checkout....

[JuggerNaut]

Gosh, Microsoft goes to great lengths when it can't win the market the old fashioned way. I think I'll stick with Google, they're so much more open platform minded than Microsoft is.

[Penguinisto]

Microsoft Search will continue to fail until it learns to set aside the politics in its own engine (for instance, do a Live Search for "remove windows and install linux"... you have to scroll a little to get to anything actually relevant (basically, you have to get past the MSFT propaganda links about how to do just the opposite). Google may not be perfect, but at least they don't try to propagandize you when you're trying to do a simple search.

[robrob8]

I think that this cash-back model could adversely affect a lot of affiliate based businesses. As an affiliate that tries to drive traffic to my website to sell an item through an affiliate link, having people trying to save adollar by using Live Search instead of finding products on my site will force me to rethink selling online.

[mac44]

I gave Live Search Cashback a try. I searched for swim goggles and found one store that sold Air Seal XR Mirrored by Speedo for $35 to $36. I searched Amazon for the same goggles and found that they sold for $22.99 retail discounted to $17.24. What a scam. I'll pass on the "cashback" from Microsoft. How about you?

[cashback-bay]

I live in the UK do you think they will have plans to explan in the future? I currently use a site similar http://www.cashbackbay.com for now.