I'm bias as i'm in competition with these guys although we're trying to make something more social with a proper backend for earning badges, no referrals, twitter support and other cool things.
But this sounds worse for the Merchant and user.
User: Has to sort out a rebate for something they already paid for, has to refer friends and get them to buy to earn.
Merchant: The user has no inventive to return as you're giving them money off.
If a user actually likes a product and if worth the merchants time and money giving them a reward like a coupon (25% off or a free item when they buy something else would be far more powerful) In my opinion at least.
I've been working on this since mid last year and am happy with our implementation but this shows what a big market this is going to be, the best of luck to them, although we are doing similar things I don't think we're close to the same.
Let's be honest it's going to be rare that anyone will earn a rebate so giving them a code to return would mean they earn something and the merchant has the hook.
But this sounds worse for the Merchant and user. User: Has to sort out a rebate for something they already paid for, has to refer friends and get them to buy to earn.
Merchant: The user has no inventive to return as you're giving them money off.
If a user actually likes a product and if worth the merchants time and money giving them a reward like a coupon (25% off or a free item when they buy something else would be far more powerful) In my opinion at least.
I've been working on this since mid last year and am happy with our implementation but this shows what a big market this is going to be, the best of luck to them, although we are doing similar things I don't think we're close to the same.
Let's be honest it's going to be rare that anyone will earn a rebate so giving them a code to return would mean they earn something and the merchant has the hook.