October 2007 Archives

BondRewards -- a program that pays out your shopping rebate in the form of a US Savings Bond -- had the highest rates of all 21 programs compared in my annual shopping rebate comparison analysis. This is their second year in a row to finish in first place.

BondRewards' Chairman and CEO Chaz Berman and Senior Vice President Miriam McDermott had this to say about the award: "It is an honor and we are very thankful to have the company recognized for the 2nd year in a row but the credit really goes to US Savings Bonds, which not only gives more, but allows members to invest in their futures."

Join BondRewards Here! (aff)

Note: this analysis was updated for 2008 here.

It's October again, and with Black Friday just weeks away, it's time once again to take an in-depth look at rewards programs' online shopping rebates.

A Gallup poll conducted the first week of October showed that the average American plans to spend $909 on Christmas gifts this season. Advertising.com's 2007 holiday shopping study shows that only 36% of the people who go online during the holiday season do so to make a purchase (instead, they're comparison shopping online to save time for an offline purchase).

Researching prices is easy, using a comparison shopping engine like MySimon or PriceGrabber... but does the average consumer realize that once they find the lowest price, they can make their purchase online through a rewards program to get cash back on their purchase? Or that they can use coupon codes provided by many of these programs on top of that? All it takes is a few extra clicks to visit a rewards program website first and click through their link to the merchant...then watch those 3%'s and 8%'s and 15% cash back rewards add up to a nice little rebate check after the holidays -- without having to clip UPC codes and mail in receipts! After all, if you're going to spend an average of $909 on gifts this holiday season, why not get a little something back for yourself?

But how do you know which rewards program to use? No one rewards program offers a rebate on every merchant on the web. Some programs pay great rates but don't offer rewards for all the big-name retailers. Other programs offer their shopping rewards not in percentage cash back but in the form of points, redeemable for gift cards or merchandise, and point values vary from program to program -- 2 points per dollar at one rewards program may be worth more than the 80 points per dollar offered by a different rewards program for the very same merchant.

In an effort to help consumers decide which rewards program(s) to use, CompareRewards puts together an annual overview of shopping rebates by merchant. This year's analysis examined 21 different rewards programs and their rates for 177 online merchants, converting those nebulous "points per dollar" into real percentages you can compare across the board.

Ready to find out where to shop? Click "Continue Reading" and find out!

The holiday shopping season is right around the corner, and maybe you're finally deciding to get in on this whole "online shopping rebate site" thing...but you have no idea what programs are out there or how to choose. For the uninitiated, it can be overwhelming -- there are a lot of rebate programs these days and it's hard to know which are "good."

Every year I release a Shopping Rebates Comparison Chart, which shows the rates paid by a selection of online shopping rewards programs for some of the more popular online merchants. This year's analysis contains 21 of these rewards programs.

Some rewards programs pay in the form of a percentage cash rebate, while others pay in points, redeemable for checks, PayPal, gift cards, or merchandise. Comparing percentage rebate programs and point rebate programs can be tricky -- what's better, 5% at one program, or 10 points per dollar at another? That was what the chart aimed to simplify for you.

But while the chart helps you see which programs pay the most for shopping, that's not the only criteria you should use when deciding on a rewards program. Other things to think about include how much you have to earn before they'll send you a check (gift card, etc.), do they reward you with a percentage cash rebate or with points (which can be bad if they increase the number of points to buy the gift card you want), and the company's background (how long have they been around? What do their members say about them? Do they have a bad rating with the Better Business Bureau?).

New online shoppers may find it helpful to see a side-by-side comparison of rebate programs so that, armed with a little more information on the programs, you can decide which one (or ones) to use and which to avoid.

So, here is my newly revised for 2007 Rebate Program Snapshot. I hope that it will help you decide on a rewards (rebate) program. Additional information, including links to news articles on each program, can be found by returning here after viewing the chart, then clicking the review for each program on the right-hand side of the page.

I am always happy to answer questions -- just send an email to info@comparerewards.com.

This week, QuickRewards started their own coupon and sale blog to better help their members locate deals and discounts they can combine with their QuickRewards rebates. The coupon blog is located here: http://quickrewardscoupons.blogspot.com/

As you probably know, there are many coupon codes available on the internet for specific merchants, but what you may not realize is that sometimes these codes will nullify the cashback you can earn from rewards programs because they were created for a coupon or deal website and using it will send the commission on your purchase to them, and not to your rewards program. My advice has always been to either use only those coupon codes that are provided by your rewards program, or if you find one on a coupon site, to ask the rewards program BEFORE making your purchase if you can combine that code with their rebate.

I love it when the rewards programs themselves provide the coupon codes, because you're guaranteed to get credit for both -- the coupon and the cash back. QuickRewards' coupon blog is interactive, too, allowing members to post codes that QR will review and okay, or allowing members to request codes.

Kinda neat...worth checking out. Join QuickRewards here if you're not already a member!

The LuckySearch search-and-win program announced today in their first member newsletter that Thursday will be a Big Win Day, with "loads of winners and great prizes." I've already won twice and have been paid twice ($5 Amazon credit both times). Read my full LuckySearch review or go ahead and join here!

When I saw that the Baltimore Sun's blog had an article entitled, "Obama's brand loyalty program: 'My Points,'" I did a double-take. Huh? Obama is endorsing MyPoints?

Turns out he's not endorsing the long-running web-based shopping rewards program after all -- he's just co-opting the name. Obama supporters can receive points, possibly redeemable for SOMETHING in the future, by doing specific actions to further his campaign, like marching in a parade or convincing someone to sign a supporter card. More information about Obama's My Points program is located here.

How is this not an infringement on MyPoints.com's trademark?

Join the REAL MyPoints program here!

Jumping on the social networking bandwagon, Upromise has started its own Upromise Community -- "to help members connect with each other." It appears this section of the site was started in September, but an email introducing it to members only went out this week. Rather than connecting members, the posts I read this morning all seem to be in the nature of support requests -- "I don't understand this, I'm not getting credited for that." Further, the post layout is confusing to me and I've been involved in message boards since the dial-up BBS days in 1986.

I think it's great that Upromise is trying something new, but in this case I don't see that the forum is fulfilling any unmet member need -- unless that need is for more information on how the program works, which it seems to me would be better served by improving the FAQ or by having members submit questions which would then be answered in a section of a newsletter emailed to everyone.

Rather than connecting existing members via a forum, I think Upromise would do better to reward its evangelists -- its intense users and loyal fans -- for reaching out to other social networking sites and spreading the word about the benefits of the program. Give members an incentive to tell their friends, like Ebates and MyPoints do.

Click to visit the Upromise Community, or join Upromise if you're not a member.

Good morning! I'm bringing you another interview exclusive to CompareRewards -- today I'm talking with Jonathan Trieber, the founder of a relatively new rewards program called iBakeSale, launched in June. Jonathan, can you tell me a little about your background and why you decided to start a rewards program?

Charitable giving has always been a big part of my life. I used to volunteer frequently at local charities in both high school and college. After graduating from Cornell University , I took a job working at Citigroup in their investment banking division. Given my limited hours of free time, I continued to support important causes through financial donations. I left Citigroup about 16 months ago with my co-founder to create a rewards program that aimed to make charitable giving easy and free, even for those people who claim to be too busy to donate (time or money) to charity. We didn't think about it as a rewards program at first but really as a conduit to support causes that were important to consumers. We knew we wanted it to be an online shopping mall of sorts with a specific focus on helping others. I guess only after we built the program did we begin referring to it as a fundraising rewards program so people could easily understand what we were doing.

Now, for the people out there who haven't tried iBakeSale yet, please tell us how it works.

iBakeSale is quite similar to existing programs out there like iGive and Fundraising Rewards for those of you already familiar with online rewards programs. For those of you not so familiar, the gist of our program is that we are an online mall that offers consumers the ability to earn cash-back savings when they shop at our 400 online stores and donate that money to any type of cause. The biggest difference is that our program was designed to cater to small community fundraisers like sports teams, religious groups, school clubs etc. We allow anybody to register a fundraising group with iBakeSale and invite others to join, shop, and support that cause. Overall, our platform is incredibly flexible and caters to small and medium size charities and any type of community organization.

How long does it take after a purchase is made before the rebate shows up in my account? How long do I have to wait to cash out, and how long does it take after I request a payment before I can expect to receive it?

It takes approximately 1-3 days for us to receive notification from our merchant partners that a purchase was made. Once we are notified of a purchase by one of our members, it takes approximately 30 days, and sometimes longer, for us to receive the funds from our merchants. Once we receive the funds, we immediately make them available to you and distribute the funds either via check or on your credit card.

How many merchants do you have for shoppers to choose from? Do you have plans to add more in the near future?

We currently have approximately 350 retailers in the program. Over the next 6 months, we plan on adding an additional 100 merchants, including various opportunities for members to earn merchant rewards when they shop in-store as well.

The idea of receiving your rebate earnings in the form of credit to your credit card is pretty unique. Why did you decide on that form of payment, and what reassurances do you give members who might feel a little uncomfortable with providing their credit card number to a relatively new rewards program? And is it okay to provide a debit card number so the payment will go straight to my checking account?

Our philosophy here was to make it as easy as possible for members to receive their rewards. The fastest and easiest way to make this happen is to credit a member's credit card for the value of those rewards. Our data is encrypted and store securely on our servers. For those members who are uncomfortable providing this sensitive information, we completely understand. We allow members to receive their rewards in the form of check if that is their preference. We are also working on new ways to pay-out rewards via direct deposit into members' bank accounts. We'll keep you posted on those developments.

What makes iBakeSale different from other charity rewards programs like iGive and FundraiserRewards?

Great question. As mentioned earlier, the biggest difference is that our program was designed to cater to small community fundraisers like sports teams, religious groups, school clubs etc. We allow anybody to register a fundraising group with iBakeSale and invite others to join, shop, and support that cause. Also, users tend to like our user interface better than the other programs. Plus the overall flexibility of our platform is incredibly appealing since it caters to small and medium size charities and any type of community organization.

Can a person add their own fundraising group to the site? Do they have to be a tax-exempt organization to qualify?

Absolutely, part of what makes iBakeSale unique is that we allow anybody to register their own fundraising group. The group does not have to be tax-exempt to utilize or free program. In fact, the program was designed for these types of groups and only morphed into a wider fundraising platform for small and medium-sized charities. For security reasons, we do not allow members to register tax-exempt or 501C3 organizations with our site. We have already acquired the correct information from the IRS to ensure that the fundraising checks end up in the right hands for our charity partners.

And just to clarify, is it totally alright to shop and keep 100% of my earnings for myself rather than sharing it with a charity?

Definitely. We obviously encourage members to share some of their savings with a cause that is special to them. But under no circumstance to we force members to donate. The choice is completely up to them, and we have a significant minority of users who choose to keep 100% of their savings.

Those are all the questions I have for you today! Do you have any final comments, or anything you'd like to say to people considering joining iBakeSale?

I don't think so. I think that covers all the major points about our program. Thanks so much for the opportunity to share my story and company with you and your readers. All the best.

Thanks so much for taking the time to talk with me -- I wish you and iBakeSale great success!

Interested in giving iBakeSale a try? Please join here!

MedicalRewardsNetwork.com Review

Please click here to join.

Date Launched: 2007
Reward Per Dollar Spent: Varies
Minimum to Cash Out: $25
Cash Out For: Rebate check (sent upon request when balance exceeds $25)
Earn For: Shopping, signups
Limit One Account Per: U.S. resident 18 years or older with a valid email address

Notes:
1. While the program calls itself "Medical" Rewards Network, you are paid by check and can use your rebate funds for any purpose. Employers may also join the program to help defray the cost of providing employee benefits.
2. There's a 60-day window in which to file any crediting disputes for your shopping purchases or else any potential rewards are forfeited.
3. If your account is dormant for 12 months or more, it will be closed and any earnings forfeited.

Related Articles: 2007 Shopping Rebates Comparison Chart

iBakeSale Review

Please click here to join.

Date Launched: June, 2007
Reward Per Dollar Spent: Varies
Minimum to Cash Out: No minimum; cash out at any time
Cash Out For: Rebate check or credit card credit
Earn For: Shopping (straight rebate site)

Limit One Account Per: U.S. resident 18 years+. Multiple accounts per household allowed.

Notes:
1. iBakeSale allows members -- if they wish -- to donate a portion, or all, of their earnings to one or more charities or other fundraising groups or projects. It's not necessary for the fundraising group or project to be a tax-exempt charity; if you want to help your school band raise money for a field trip, or help a local cancer patient raise money for their treatment, any cause can be added to receive a portion of your online earnings.
2. If a member chooses to support more than one organization with his donations, the percentage of his earnings he chooses to donate will be split evenly among the groups. The member, of course, can choose to not donate anything.
3. iBakeSale offers a unique form of payment for individuals -- a credit to your credit card account. You do not have to provide your credit card number until you're ready to cash out. Tax-exempt organizations will be paid by check.
4. Plans are in the works to allow membership outside of the U.S. A reminder toolbar is also forthcoming.

Related Articles: 2007 Shopping Rebates Comparison Chart

If you're in management at a rewards program/shopping rebate portal and you'd like to be included in this year's annual shopping comparison review, please email me immediately as I'm compiling the data now. Thanks!

This weekend, I was granted an exclusive interview with the founders of Extrabux.com, a site that I recently reviewed for CompareRewards (see my Extrabux review here). My questions and their answers follow:

Extrabux was launched in June of 2006. Can you tell me a little about your background and why you decided to start a rebate site? How familiar were you with rebate/rewards programs before you started one yourself?

Extrabux began as a “pet project” among two college students from the University of Southern California, Noah Auerhahn and Jeff Nobbs. After much discussion and research into the online shopping industry, Noah and Jeff realized the amazing potential that online retailers offered through their affiliate marketing programs. Essentially, if a website directed a customer to an online retailer, that website would receive a percentage of that customer’s total purchase. Noah and Jeff didn’t like the idea of creating a website solely to drive traffic to online retailers just so they could make money. Instead, they wanted to adopt a customer based approach whereby Noah and Jeff could recruit customers to their site, track their purchases, and reward customers directly for their purchases. Thus, Extrabux.com was born.

What, in your mind, sets Extrabux apart from your competition?

Extrabux maintains a strong focus on keeping our website simple, clean, and easy to navigate. Too often, websites are cluttered with information and fancy images that intimidate users. Extrabux believes that we don’t need a complicated website. Instead, we focus on the quality of our product and our industry best cash back rates, which attract customers.

Extrabux offers great rebates, often higher than your competitors -- how can you afford this? Are these promotional rates, or is this what we can expect from Extrabux all the time?

From the beginning, Extrabux has been extremely well managed from an organizational standpoint. Our focus has never been on buying expensive equipment to run the business or other luxuries that many companies adopt. Rather, our focus has been on keeping the company small so that we can effectively manage our costs. Thus, we have limited our overhead and are able to pass on our savings directly to our customers. Extrabux has a goal of saving our customers as much money as possible. We feel that by providing higher cash back rates, we can create a sense of more tangible savings, which leads to happier customers; and with happy customers comes more purchases, more loyalty, and more referrals. With the success of this philosophy, as demonstrated through the growth of our customer base, it is our intention to continue to offer the highest rates on the internet for rewards based shopping.

I really like the coupons section you have up on the site -- with the list sortable by store name, coupon amount, and expiration date...and I like that you can flag specific coupons to come back to later. By using a coupon on your list are we assured that we'll get credit for both the coupon and the cash back? How often do you add coupons to this list?

The coupons we add to the site allow users to save directly from their purchase at the online retailer. After the coupon has been deducted from the purchase, Extrabux receives a percentage of that new discounted price. In essence, the customer gets to use two coupons on their purchase—one directly at the store and one through Extrabux that comes as cash back.

Coupons are added daily, or whenever they become available from the online retailers. The best time for customers to check for new coupons at their favorite stores is the beginning of the month. Most retailers inform us of their monthly coupons a few days in advance, so we can upload the coupons ahead of time so users have access to the coupons right when they become active. However, it is also important to check in throughout the month as we are constantly adding new coupons, some of which only last for a couple of days, but provide huge savings.

We have also added a new coupon newsletter that we send at the beginning of every month. In this newsletter, we inform our users about the most popular coupons and those coupons that we believe should be featured.

The minimum to cash out your rebate earnings from Extrabux is $10. How long is it after a purchase is made until it shows up as "pending"? Roughly how long does it stay pending until it can be cashed out? How long does it take after a member requests a payment for him to receive his money (by check or by PayPal)? Do you make payments monthly, weekly, or daily?

After a customer makes a purchase through Extrabux, it usually takes about 1-3 days (depending on the retailer) for that purchase to be displayed as “pending” in our customer’s accounts. This delay is expected because the online retailer must first process the customer’s order, and from there, our system must receive the order and upload it into the customer’s account.

The “pending” period for cash in a customer’s account is about the same length of time as that of the store’s return policy. Extrabux must use this pending period in case a customer decides to return his/her order to the store. On average, most purchases will be marked as pending for 45 days. This is due to the fact that most stores have a 30 day return policy and can take up to 15 days to process a return. After that 45 day period has passed, the cash will be available for the user to receive as a payment.

Once a customer requests a payment, Extrabux immediately processes the request. Customers may also request to have payments sent every X months or only once their account balance reaches a minimum of $X.XX Customers that use PayPal can expect the money to be transferred into their PayPal account within one day of the request. For customers who prefer their payments to be sent by check, they can expect their checks to arrive within 7-10 days from when they requested a payment, which includes the time it takes to process and deliver the checks.

Other competitors send checks only a few times a year, but Extrabux gives our customers the freedom to receive their available cash back whenever the customer wants (as long as that customer has an account balance of at least $10).

Extrabux has a commitment to giving back to charitable organizations, through an option for members to donate earnings to charity as well as through Extrabux's Charity of the Month program. Tell me more!

When users request a payment, they are given the option to donate all of their earnings or a specified portion of their earnings to the charity of their choice (we currently have 12 charities, but hope to add more soon). In the near future, we plan to develop custom landing pages from charity websites. For example, a link to Extrabux from the American Red Cross would bring visitors to an Extrabux page that is completely tailored to the American Red Cross.

Unfortunately, due to Amazon.com’s policies, we will no longer be able to offer cash back at Amazon.com, even if it is donated to the Charity of the Month.

Extrabux recently celebrated its first year of operation. In what ways has Extrabux changed over its first year, and what goals do you have for the site in the future?

The first year of operation for Extrabux has been very rewarding. We celebrated our first year anniversary by redesigning the site to provide our customers with easier access to their stores and to help attract new customers. In August 2007, Extrabux unveiled its new referral program, which gives customers $3 for every friend they refer to Extrabux, and there is no limit to how many friends you can refer. The referral program has been very successful, and after its debut, Extrabux experienced a tremendous increase in new customers.

In our first year of operation, we have focused heavily on improving the site so as to best maintain it for our customers’ preferences. We get dozens of emails each day requesting stores to be added or suggesting small fixes to the site design, and we read every email and discuss potential ideas with our software programmers daily. Extrabux really values our customers’ opinions, and much of our development over the past year has been due to their communication with Extrabux.

Currently, Extrabux is working on its next phase of development, which we expect to debut by summer 2008, along with other smaller improvements throughout the year. We are always looking to make our site more user friendly, and we are also exploring new opportunities to provide our users with exactly the stores and coupons they want. In addition, we will be instituting a new email program that informs users immediately about updates on their favorite stores or coupons, so users can take advantage of savings immediately when they become available.

Do you send out any kind of newsletters or account statements by email, to help remind us to shop through Extrabux?

Extrabux doesn’t like to bombard our customer’s with daily emails. We value our customer’s privacy and time. Extrabux provides two monthly emails—one that focuses on coupons, the other that concentrates on featured stores and opportunities for the month.

We also send a confirmation email immediately after a user registers with our site, in addition to notifications immediately when a purchase is uploaded onto Extrabux. Furthermore, once a customer’s cash back is available in his/her account, Extrabux notifies the customer so he/she can withdraw the money immediately after it becomes available.

In the future, we are looking to create innovative emails that are personally tailored to our individual customer’s preferences. By doing this, we will provide our customers with information about the stores and products they care about most.

Is there anything else you'd want to tell people considering joining your program?

Extrabux truly appreciates every customer who signs up for our program. Extrabux is completely free and we will never ask for any personal financial information. At Extrabux, our primary concern is passing on savings to our customers. We want to encourage the growth of online shopping and believe we can do so by providing shoppers with access to the best cash back savings and coupons on the internet.

If at any time you have any questions about Extrabux, feel free to contact us at info@extrabux.com and we will respond promptly.

A big thanks goes out to Extrabux for taking the time to respond to my questions! If you'd like to check 'em out, please join Extrabux here!

Today MyPoints started a new instant win game called Search, Spin & Win. Through October 31st, MyPoints members can get one game play per day by doing a search onsite (enter a search term in the "What are you looking for?" search box on the site) or by doing a search through their new downloadable toolbar. Downloading the toolbar will also get you 25 points. Through the wheel spin game, you can earn points and/or a sweepstakes entry. You can earn an additional sweeps entry for clicking on a sponsor link each day.

What are the prizes and your chances of winning? Let me explain the easiest part first: there will be one grand prize, a trip for 2 to Hawaii for 5 nights, worth $4,000. There will be one first prize, your choice of an HDTV flat screen or LCD TV, worth up to $3,000 -- the winner chooses the exact model (with approval). These are the sweepstakes prizes that are chosen by a drawing from all entries, on November 14.

The points prizes are a little confusing. MyPoints says there will be "up to 506,000" instant point winners. This tells me that over the course of the 21 days of the contest, 506,000 times there will be a winner chosen, and you can win more than once. That's a whole lot of winners, so it's important that you play every day. Now, how many winners of each point value will there be? Usually their contest rules spell this out but this time they don't -- they just say that over the course of the 506,000 winners, a total of 3,295,000 points will be awarded. That works out to an average of 6.5 points per win.

The wheel has potential prizes on it of 5, 10, 15, 20, 25, 100, 200, 300, 400, or 500 points. Judging by the average of 6.5...there will be a lot of low points winners, and not too many of the higher point prizes (which really isn't surprising, is it?). Keep in mind that the highest prize up on the wheel, 500 points, is still just worth only about $3.85. 25 points is worth about 19c, and the average of 6.5 points is worth 5c. MyPoints estimates that the total value of the points to be given away is $25,701.

From a MyPoints' member perspective, this contest is lame, lame, lame. Instead of giving half a million people an average of 5 cents, why not give out, say, 50 prizes of $500? Or 250 prizes of $100? I'd rather have slimmer chances of a better prize than a GREAT chance of winning a nickel!

From MyPoints' business perspective, though, the contest raises awareness of its recently revamped search engine. The Product search feature helps you find the cheapest price for a specific product, both at MyPoints' merchants and at non-participating merchants. It is far from being comprehensive but it's a step in the right direction. With the holiday shopping season coming up fast, MyPoints wants to familiarize its members with this feature and $25 grand is a relatively cheap way to do it, especially if it pays off with more shopping through the site in the last three months of the year, their money-making quarter.

So, there you have it -- my analysis of the new MyPoints instant win game. Lots of chances to win, but the prizes are far from exciting. If you're not a member of MyPoints and want to give it a shot anyway, please click here.

If you're a ClubMom member, you may be interested in this offer -- 1,000 points (worth $5) for attending a "Do It Herself" workshop for FREE at Home Depot on October 22! The class is called, "The Power is Yours: An Intro to Power Tools." When you attend you'll be given a code to enter on the ClubMom website to receive your points. More information on the offer is here; join ClubMom here.

Okay, I think even Ebates would agree with me that it's nowhere near as cute as their Cute Baby video, but they do have a new promotional video up on YouTube: Cash Back! It shows how easy Ebates is to use, how quickly your cashback adds up, and how addictive it can be.

I already knew all that...so the big question I have is, who's the hand model in the video? It's obviously a dude. Could it be Alessandro Isolani (the founder) himself? Do tell, Ebates! ;)

Update, 10/9: Google's web search is back on BigDevil. Whew, that was close! But the following advice is just as wise...
Yesterday I needed a search engine to research something so I went to BigDevil, one of the search-and-win sites (if you're not a member, please join here) and something peculiar happened: the results page said that my search was invalid because I used automated search software. Strange, I thought. I'm not doing anything wrong, what's up with that?

Today when I went to BigDevil, I found that they are no longer "powered by Google." Regular search listings aren't available but you can still search video, images, news, etc. Prizes are still being offered as usual, and I notice Google Ads are still on the sidebars. Why was BigDevil singled out to be booted from Google's search network while other sites like LuckySearch remain?

Did some digging and think I found the answer. There are a couple of sites set up exclusively for sharing cheats and exploits on various search-and-win websites -- I do NOT advocate this so I'm not sharing the links -- and several days ago they posted a method for automating searches. BigDevil caught it, patched the exploit, and banned the users, but apparently not fast enough for Google's liking.

Don't try to rip off rewards programs, people...this is what happens. Play by the rules so we can all have a fair shot at winning something, or do something stupid and jeopardize the entire future of the program.

It was bound to happen...the guys at Jellyfish have created such an internet buzz about their site, it attracted the attention of not just ONE of the big guys, but the biggest guy: Microsoft.

The purchase price is reported to be $50 million. Microsoft is letting the site keep the Jellyfish name, as well as their current employees (who'll get to stay in Madison, Wisconsin).

Jellyfish co-founder Brian Wiegand told the Wisconsin State Journal that they were initially approached by Microsoft three months ago, that they completed the transaction last Thursday, and that Jellyfish will make a formal announcement of the purchase today.

Microsoft, via their Live Search Blog, said, "Jellyfish has done some really innovative work in comparative shopping engines. We think the technology has some interesting potential applications as we continue to invest heavily in shopping and commerce as a key component of Live Search."

In Jellyfish chat this morning, Brian told members voicing concerns about how the purchase will affect the site, "...thanks for supporting Jellyfish. I promise that we won't lose the customer centric philosophy going forward. I will still be here." Co-founder Mark McGuire will be staying on as well.

Update, 10/4: An interesting article about how Jellyfish fits into Microsoft's strategy is in today's InfoWorld Blog.