Microsoft offers cash to searchers who buy

SEATTLE -- The software giant launched a service that pays rebates to consumers who use a special version of its Live Search site to find products for sale — and make the online purchase.

"Our goal is to make Live Search the most rewarding commercial search destination on the Web," says Microsoft Chairman Bill Gates.

Users who sign up for accounts can earn rebates by purchasing products directly from the Live Search cash-back site, or by looking for a gold coin icon accompanying search results on the main Live Search website.

By purchasing a participating merchant's products, a user can earn rebates worth 2% to 30% of the price, deposited into his or her Live Search account.

After a 60-day waiting period, refunds totaling $5 or more are accessible via deposit to an online banking or PayPal account, or delivered in a check by mail.

Microsoft will use the fees it normally earns for running online ads to pay the rebates, hopefully reaping a boost in Web traffic.

The business model is not new. Websites such as FatWallet that appeal to bargain hunters conduct similar promotions.

Microsoft's wrinkle: It will charge advertisers only for actual online sales generated, rather than based on the number of times someone views their ads.

Gates said the company's objective is to "help advertisers drive more online sales while giving consumers a new way to stretch their dollars."

Big names among the few hundred online merchants that signed up for the launch include eBay, Barnes & Noble.com, Overstock.com, Sears, Circuit City, Home Depot and Zappos.com.

However, the cash-back site is limited to providing search results only for items sold by the participating merchants.

Meanwhile, Microsoft's general-purpose MSN and Live Search websites continue to run a distant third in market share to No. 2 Yahoo and search giant Google.