Behind the Codes

How Voucher Companies Make Their Money

Voucher codes, promo links, cashback offers… you’ve likely used one. Maybe even today. They feel like a win – a cheeky little discount just before checkout. But while shoppers save a few quid, there’s a thriving business model ticking along in the background. Voucher companies aren’t running charities. They’re highly strategic players in the affiliate marketing ecosystem, and in this article, we’ll explore exactly how they make their money – and why marketers need to pay attention.

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What Exactly Is a Voucher Company?

Voucher companies (or coupon sites) are digital platforms that collect and share discount codes, special offers and cashback deals from a wide range of retailers. They include (links not added to save my website Spam Rating!!):

  • VoucherCodes.co.uk

  • HotUKDeals

  • Honey (owned by PayPal)

  • Groupon

  • Vouchercloud

  • RetailMeNot (US-based but influential)

Their role is seemingly simple: help users save money. But their real business lies in affiliate partnerships, user data, and clever SEO positioning.

1. Affiliate Marketing: The Primary Revenue Stream

At the heart of most voucher companies is a good old-fashioned affiliate marketing model.

How it works:

  • Voucher companies sign up to affiliate networks (e.g. Awin, CJ Affiliate, Rakuten).

  • Retailers provide them with unique tracking links and commission rates.

  • When a user clicks a link from the voucher site and completes a purchase, the voucher company earns a commission – usually a percentage of the sale.

Some commissions can be small (1–3%), but others can reach 10%+ for high-margin categories like fashion, beauty or subscription services.

💡 Fun fact: Some voucher sites even get paid on a Cost Per Action (CPA) model – such as when someone signs up to a newsletter or registers for a trial, not just purchases.

2. Last-Click Attribution: The Golden Goose

Voucher companies have long benefited from last-click attribution models.

In simplified terms:

The last site a user clicks before converting gets the credit for the sale.

So even if a customer was nurtured for weeks by email campaigns, Google Ads, organic search and retargeting… if they Google “Brand X voucher code” at checkout and click a voucher site – guess who gets the commission?

The voucher site.

This has led to controversy in marketing circles, with some brands accusing voucher sites of cannibalising conversions they would have earned anyway.

Marketer’s tip: Brands should be clear on attribution models when joining affiliate schemes. Some have moved to multi-touch or position-based attribution to avoid over-rewarding voucher platforms.

3. White-Label Voucher Portals

Some voucher companies also generate revenue by offering white-label solutions for publishers or brands. These are custom-branded voucher portals powered by the voucher site’s technology.

For example:

  • A newspaper site like The Guardian might have its own branded “Deals” section.

  • Behind the scenes, it’s powered by VoucherCodes or Savoo.

  • The publisher earns a cut of the affiliate revenue, and the voucher company keeps the rest.

It’s a win-win:

  • The publisher adds content and monetises readers.

  • The voucher company expands reach without building new audiences.

4. Data Collection and User Behaviour Insights

Voucher companies – especially browser extensions like Honey – collect huge amounts of user data.

This includes:

  • Shopping habits and preferences

  • Time spent on product pages

  • Basket sizes

  • Checkout behaviours

This anonymised data can be packaged and sold or used to:

  • Improve conversion tools

  • Refine deal targeting

  • Drive AI-based personalisation

Some companies offer premium services to retailers – think of it as a data-driven upsell. Brands pay for:

  • Better placement on the voucher site

  • Early access to consumer insight reports

  • Enhanced segmentation or geo-targeted promotions

5. Paid Listings and Sponsored Placement

Just like Google Ads, most voucher sites have premium real estate – and it’s up for sale.

  • Retailers can pay for better visibility on homepages or in specific categories.

  • Some sites offer “Featured Merchant” status for a flat fee or higher commission percentage.

  • Deals can also be boosted through exclusive codes negotiated in return for placement.

This creates a secondary revenue stream outside of pure affiliate commission.

 

6. Cashback Loops and Partner Integrations

Some voucher platforms are doubling up as cashback sites (or partnering with them).

Example:
A user clicks a voucher link on a platform that also offers cashback. The user thinks they’re saving 5%. Meanwhile:

  • The site earns 10% from the retailer.

  • They pay the user 5% cashback.

  • They keep the remaining 5% as profit.

There’s margin in the middle, especially when large volumes are involved.

Honey and TopCashback are prime examples of this dual model – layering incentives and maximising margins.

 

7. Groupon’s Twist: Prepaid Vouchers

Let’s not forget Groupon, whose model differs slightly.

Rather than affiliate commissions, Groupon:

  • Partners directly with businesses (gyms, salons, restaurants, etc.)

  • Negotiates discounts and sells prepaid vouchers to users

  • Takes a significant cut of the upfront payment (sometimes 50%+)

Example:

  • A spa offers a £100 massage for £50 on Groupon.

  • The customer pays £50.

  • Groupon keeps £25, and the spa receives £25 (or less).

It’s controversial. Many businesses complain about low revenue, no-shows, or deal hunters who never return. But Groupon still earns money regardless of the customer’s long-term value.

 

What About Honey?

Honey deserves a shoutout. The browser extension, now owned by PayPal, makes it seamless to apply voucher codes at checkout. But don’t be fooled by its helpfulness.

Here’s how Honey earns:

  • It acts as an affiliate for thousands of retailers.

  • When users apply a working code and proceed to checkout via the extension, Honey gets a commission.

  • As part of PayPal, Honey also helps increase conversion rates and transaction value, which feeds back into PayPal’s broader ecosystem.

Data is power. And Honey’s got a lot of it.

 

The Ethical Dilemma: Are Voucher Sites Helping or Hurting Brands?

Voucher companies help consumers feel savvy. They can drive traffic, clear stock, and aid in competitive markets.

But there are downsides:

  • Cannibalisation of full-price buyers

  • SEO dominance for brand + voucher searches

  • Brand dilution from constant discounting

  • Limited control over the customer journey

Some brands like Apple famously avoid them. Others like Domino’s lean into the model heavily.

It’s not inherently bad – but it’s not always profitable, either. Marketers must evaluate:

  • Attribution models

  • Commission costs vs. ROI

  • Brand alignment and user experience

TL;DR: How Do Voucher Companies Make Money?

  • Affiliate Commissions: Their bread and butter – paid when users buy via their links.

  • Last-Click Attribution: Often credited for sales they didn’t generate alone.

  • White-Label Portals: They license their platform to publishers and share revenue.

  • Sponsored Listings: Retailers pay to appear in prime positions.

  • Data Monetisation: Behavioural data is gold – and it’s sold or leveraged.

  • Cashback Margins: They take a slice of commission and pass some to users.

  • Prepaid Vouchers (e.g. Groupon): They sell experiences and take a chunky cut.

For marketers, voucher companies are a powerful but double-edged sword. Use them wisely, with clear attribution and strategic intent – or risk discounting your brand into a corner.