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Business Operations Business Models

How Does Swagbucks Make Money (Business and Revenue Model)

The Swagbucks business model

How Does Swagbucks Make Money?
Here’s what you should know:
  • What is Swagbucks, and how does Swagbucks work?
  • How does Swagbucks make money?
  • Affiliate Commissions
  • Swagbucks’ profit and revenue
  • What is the Swagbucks business and revenue model?
  • Swagbucks’ funding and valuation

How does Swagbucks make money if it’s free to use and they pay you? Here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Swagbucks business model, their profit and revenue, and how Swagbucks works.

What is Swagbucks, and how does Swagbucks work?

Swagbucks is a rewards platform that gives users free gift cards and cash for doing tasks such as taking surveys, playing online games, shopping, and more.

Founded in 2008 by Josef Gorowitz and Scott Dudelson, Swagbucks has paid out over $717 million in cash and free gift cards to its members since its founding.

How Swagbucks works is: To use Swagbucks, users must first sign up for an account, verify their email, and answer some questions about themselves.

Once done, users can begin earning rewards, called SB, through a number of different ways laid out in the app. Which they can then redeem for cash or gift cards. Note that 100 SB points = $1 USD.

Some of Swagbucks’ competitors include HoneyGroupon, Ibotta, RetailMeNot, Upside, Rakuten, and other

Swagbucks App in Apple App Store | Swagbucks Business Model | How Does Swagbucks Make Money? | How Does Swagbucks Work?
Source: Apple App Store | Swagbucks

How does Swagbucks make money?

According to Swagbucks’ about page, Swagbucks partners with over 7,000 stores and has paid out over $717 million to its members since its founding back in 2008.

So how does Swagbucks make money off of all these participating stores?

Below is a breakdown of how much money Swagbucks makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Swagbucks makes money (in 2022):

Swagbucks has a revenue model that makes money in just one (1) way – by getting paid affiliate commissions from participating stores.

#1. Affiliate Commissions

Swagbucks makes all of its money by getting paid commissions its from participating stores.

How does Swagbucks make money from this? Swagbucks makes money every time a Swagbucks user clicks on one of their links to a participating store and makes a purchase.

As noted above, Swagbucks has more than 7,000 participating stores they earn eligible commissions from. Although it’s unclear how much money Swagbucks makes in commission per sale. You can read more about it on their advertising disclosure.

Swagbucks Affiliate Commissions | Swagbucks Business Model | How Does Swagbucks Make Money? | How Does Swagbucks Work?
Source: Swagbucks

Note: After Swagbucks gets paid a commission from a sale, they then share a piece of that commission with its members in the form of cash back rewards.

Swagbucks’ profit and revenue

Swagbucks has not released any official reports in regards to company earnings.

Note: Because Prodege, LLC, the parent company of Swagbucks, is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Swagbucks business and revenue model?

Swagbucks makes money through a few revenue models that they combine within their company, they are:

  • Affiliate business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

Swagbucks’ funding and valuation

According to Swagbucks’ Crunchbase profile, Swagbucks has not raised any funding up until this point.