How do Reward Programs Work? A Complete Guide (With Examples)

How do reward programs work?

Did you know that you can earn cash rewards and gifts from retailers?

Not only that, but many brands offer special discounts and promotions to reward members.  If you are not a member of your favorite store’s reward program you’re losing money.

Don’t worry!

In this post, I’ll explain everything you need to know about how reward programs work and how you can get perks and free gifts from your favorite stores.

  • How do reward programs work?
  • Benefits of joining a reward program.
  • Which brands offer reward programs?
  • How to sign up for rewards programs.
  • Other ways to earn rewards from retailers.
  • Why do brands offer reward programs?

How do reward programs work?

Reward programs are a membership given to customers for their loyalty to a brand.

In short, they are used by brands to encourage customers to buy from their stores.

These programs are frequently used at establishments that want to encourage customers to make recurring purchases.

While discounts are subject to terms and conditions, there are less known ways to save even more without infringing promotions’ terms and conditions.

This is how:

You can combine store rewards with other types of discounts.  In addition to taking advantage of rewards and perks, customers can also earn cashback on top of coupons, promo codes, and special promotions –more about this later.

To join a store’s reward program, you must first sign up to become a member of the store.  Many stores also have an app that you can keep track of points and find discounts and promotions.

It’s very easy to sign up.

To become a member, most stores ask for the customer’s information such as their name, phone number, address, and email.

Reward programs terms and conditions vary, but they are usually accumulated using a point system and are redeemable for gifts with purchase and in-store cash rewards.

Other benefits include free shipping, access to private events and workshops,  special return and exchange policies, exclusive sales and promotions, and exclusive customer service lines.

But what kind of reward programs do store offer?

                    Types of reward programs

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  • Frequency programs – This type of loyalty program rewards customers for repeat purchases.  Coffee shops, for example, might give a free drink after the customer makes frequent purchases.  Sign up for Dunkin’ Donuts to get a free beverage after 200 points!

Many stores have different tiers of membership.  The more you buy, the more rewards you will get.

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  • Tier system – Many stores offer a membership for their reward program based on how frequently they make purchases.  In this case, customers have to reach an amount to get to the next level and receive more benefits. At Sephora, for example, customers enjoy benefits when they sign up to their reward program.  After spending $350 on a calendar year customers will get even more benefits. The highest tier at Sephora is for ROUGE members, customers that spend at least $1000 per year. ROUGE members get a private landline and invitation to exclusive events, in addition to benefits of INSIDER and VIB members.

Our favorite tier reward program:

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Best Buy’s reward members get a variety of benefits based on how much they spend per calendar year.  While the first tier is free to join, elite and eliteplus members must spend $1500 and $3500 in purchases per calendar year respectively.

Elite plus members are eligible to receive free shipping, an extended period for returns and exchanges, access to special sales and offers, a point banking option, and a 24/7 customer service line.

The third type of reward program is a paid membership:

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  • Paid membership – In some cases customers need to pay to be a part of a membership service.  This is the case for Amazon Prime, for example. Amazon Prime costs an annual fee for benefits such as free shipping.  As a prime member, customers can also stream movies and download music.


  • Point system – Many reward programs are based on a point system.  After accumulating a certain amount of points, members are able to redeem their earnings for a discount, gift, or reward.

At most stores, points are redeemable for gifts with purchase and in-store cash rewards.

Some rewards require a minimum amount before taxes to get the reward.

Points may expire, so keep track of each store’s reward program policy to learn about expiration dates and exclusions.

One of the most popular types of points is frequent flyer miles.  Frequent flyer members collect miles or travel points to reach an amount redeemable for a ticket.

In addition to points being redeemable for gifts with purchase and in-store cash rewards, most membership programs offer other benefits such as free shipping, access to private events and workshops, special return and exchange policies, exclusive sales and promotions, and exclusive customer service lines.

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Benefits of joining a reward program

Benefits of reward programs varies, but many offer the following benefits:

1) Gift with purchase – Gifts with purchase are given by many stores such as Macy’s, Clinique, Estée Lauder, and other stores.

Many beauty brands give gifts with purchase to customers when they buy a certain amount from the brand.

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Birthday gifts are also popular rewards given by brands.  Express and Sephora are examples of stores that offer birthday gifts to loyal customers.

2) Cash rewards – Most stores that offer rewards give a cash reward valid for any purchase at their store.  This works like a discount at your next purchase. CVS’ ExtraCare card, for example, can be used to purchase most items at their store.  Gap’s cash reward is called GapCash and is valid in-stores and online.

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3) Other perks – Reward programs also offer other types of benefits such as free shipping, access to exclusive events, birthday gifts, special promotions, early access to sales, private customer service line, invitation to classes and workshops.

    Which brands offer rewards?

Reward programs are used by several type of businesses such as airline companies, hotels, retailers, restaurants, coffee shops, gas stations, and credit cards.

Popular stores with rewards programs include Dunkin’ Donuts, Best Buy, Sephora, Omaha Steaks, Walgreens, CVS, Gap, Banana Republic, Athleta, JC Penney, Ace Hardware, Kohl’s, Saks Fifth Avenue, Moosejaw, Express, Godiva, Target, Century 21, Bloomingdale’s, Macy’s, Staples, Office Depot, Petco, Rite Aid, Wyndham Hotel Group, Best Western, Choice, Hilton Hotels, La Quinta Hotels, Petco, Auto Zone, Shopko, Big Lots!, GameStop, and more.

Take advantage of the 61 Best Rewards Programs: Store Customer Loyalty Cards You Must Get!

Other types of rewards  

Companies also offer other types of rewards such as coupons, discounts, and promo codes.  Other types of rewards include credit cards and cashback.

  • Credit cards – Credit cards offer various rewards for using their product.  Some credit cards rewards their customers with miles, cash, or products and services.


  • Cashback – Cashback sites return a portion of the amount spent at a store when you make a purchase.  Hence the term “cash-back”. It works like a referral program. Shopping through a cashback site isn’t different than making a purchase like you normally would.  The difference is that by clicking on the retailer (i.e. Walmart) through a cashback site (i.e., the retailer shares a commission to the cashback site. The cashback site then shares a part of that commission with the customer.  Cashback sites also feature coupons and other rewards. Each cashback site offers different rewards, so it’s important to find the program that best fits your needs. One of the most important factors when choosing a cashback site is to find the one with the best rates. Lemoney, for example, is a cashback site that is unique because it has some of the highest cashback rates.  In addition, it’s the only site that gives a cash bonus to its members for inviting friends. It also rewards members with cash every time they shop.

Why do brands offer reward programs?

Customer acquisition is expensive.  Many studies have identified that the most profitable customers are the ones who are already shopping at a company.

Considering it costs five to twenty five times to acquire a new customer than to keep an existing one, reward programs are an important strategy for many companies and businesses.

Reward programs exist to create another incentive for a customer to become loyal to a brand.

Loyalty programs are used by many brands to encourage customers to buy from their stores by rewarding them for repeat visits.

Since many stores offer reward programs to their customers, the ones who don’t become less competitive.

While there are other ways for brands to market their product or service, reward programs are very effective and turn customers into loyal ambassadors.

For customers reward programs are beneficial given the perks offered to members.  It is worth signing up to become a member at your favorite stores!

Final thoughts on rewards programs

Take advantage of reward programs.  Most stores offer a rewards program, so you are missing out on benefits if you don’t sign up to become a member.

Each reward program is different.  When deciding which type of reward program to to sign up for, think about which stores you shop at the most.

Since it is better to accumulate points at a specific store, we recommend focusing on two or three stores in each segment to get the most benefits.

Is Lemoney Legit? (+ Lemoney Reviews)

Lemoney’s rewards are so great that you might be wondering if the cashback is legit.  

So, is Lemoney legit?

Thousands of people shop at Lemoney and redeem their cashback on a daily basis.  Lemoney offers the best cashback rates (up to 31%) at 1500+ stores, including Macy’s, Walmart, Target, Best Buy, Groupon, eBay, and more!  In addition, you earn cashback on ALL of your friends’ purchases when you invite them to Lemoney.

Wait, what?!  

That’s right.  Your earn cashback on all of your friends’ purchases.

This is what our members had to say when asked about their experience of shopping through Lemoney:

So far I didn’t have any issues, I already got paid so I know this site works!

-Steven G.

I was not sure about the authenticity of Lemoney before and I was using Ebates for a very long time. From now on I will use Lemoney for my online shopping.

-Ramakrishnan R.

Easy to shop. Tracking process is good. Cash back % is great.

-Vivek J.

I was looking for the highest cashback in my favorite Gearbest store. I recommend shopping through your portal to everyone. Very efficient and fast support. Very fast withdrawal of funds. I will come back to you every time I make purchases.

-Krzysztof W.

Great customer service, clear breakdown of cashback earnings.

-Jen M.

(…) I honestly forgot I used Lemoney to shop, until I saw the reminder sent from Lemoney, then I went to check the balance and request the money. It’s very quick, not like my previous bad experience with some websites that never really gave back my money. Very good!


Still not convinced?  Check out what this site has to say about Lemoney.

If you’re new to the site and are not sure how it works, read our frequently asked questions below.  We also have a post on our blog that explains how you can get cashback on your friends’ purchases.  Our customers are our priority, so we are transparent about everything we do.

Frequently Asked Questions:

  • Do all purchases qualify for cashback rewards?

Every item you purchase through Lemoney qualifies for cashback, but we cannot, however, give cash back for taxes, shipping, or any portion of a purchase that is paid for with gift certificates or a store credit.

  • When I use my Coupons do I also earn Cashback?

You can combine cashback with coupon codes from our affiliate stores as soon as customers find them on Lemoney’s website.

  • Do I need to pay to join Lemoney?

Lemoney is 100% free for users.

  • When will my Cashback be available?

As soon as our affiliate stores validate it, it will be available to redeem. It usually takes at least 120 days. Some stores cannot confirm your purchase until the return period has elapsed and may take up to thirty days to confirm your cash back.

  • How can Lemoney pay me rewards for shopping?

Lemoney receives payments from companies and affiliate stores that sell, advertise, promote or otherwise offer their products and services at our website.  Lemoney, then, retains a fraction of the payment but gives the majority back to the user who made the purchase (who gets the largest part) and to their community.

  • How do I get paid?

It’s really easy! You may withdraw your balance through PayPal.

We deposit your payment in your PayPal account (in some cases a small PayPal fee may apply). Just enter your email address associated with your PayPal account.

What is Lemoney’s privacy policy?

Lemoney takes privacy and security very seriously. We know that protecting member’s privacy is essential to our success. Please review our complete Privacy Policy.

  • How secure is my credit card info?

Lemoney does not capture or receive your credit card information.

  • Are my transactions secure when going through Lemoney?

Lemoney redirects you to our affiliate stores’ website so will they know you are a user and can pay your cash back properly. After being redirected, your purchases and financial transactions happen as if you had accessed the stores directly.

Still have questions?  Read the frequently asked questions on Lemoney’s site.  

Looking for the best cashback rates at your favorites stores?  Look no further! Check out Lemoney’s site to earn cashback at your favorite stores!

5 Ideas to Celebrate International Women’s Day 2018

International Women’s Day dates back to the early 1900s to celebrate women all over the world. March 8th is a day to recognize women’s achievements and honor them.  In this post, I will share with you five ways to celebrate your mother, daughter, girlfriend, sister, friend, teacher, or wife.

1. Write her a letter – Write a letter to the woman in your life about the things that you appreciate about her.  Sending a card will be even more special.  Hallmark has a large selection of cards that you can choose from.  She will be happy to know you are thinking of her.

2. Get her flowers – I’ve never met a woman who doesn’t love to get flowers.  Surprise her by sending flowers to her house or to work. We recommend Teleflora and 1-800 Florals.  Bestsellers include violets and roses.

3. Buy her a gift – It doesn’t matter if you get her something big or small, it’s the thought that counts.  Get her jewelry, mugs, perfume, or chocolate. Godiva is to die for!

4. Take her to dinner – Make this day all about her!  A dinner out will make her feel appreciated and cared for.  It doesn’t have to be expensive. Groupon and are great options that offer cash back.

5. Go to an event –  There are several events all over the world to celebrate women.  If you’re in New York, consider going to the United Nations’ observance day to hear speakers such as the UN Secretary-General and Reese Witherspoon.  Don’t forget to RSVP!

Although March is Women’s History Month, there are several ways you can celebrate women throughout the year.  Read our blog post about mother’s day activities to get more ideas to celebrate the special women in your life.

What are you doing to celebrate International Women’s Day?  Let me know in the comments below!

10 Things to do on Mother’s Day with Cash Back – 2018 Edition

Mother’s day is one of my favorite times of the year.  My family lives far away, so family gatherings are always special.  Last mother’s day I planned a surprise trip to Tahoe.  This year, we are staying home.  Although my gift to my mother isn’t as extravagant this year, I came up with creative ideas to celebrate my mom that I’m going to share in this post.

What are you doing on Mother’s Day?  Not sure?  Check out my ideas for fun mother’s day activities to celebrate.  These activities are great for adults and kids.  The best part?  You get cashback on all of these experiences.

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1. Treat your mother to dinner – Take your mom to a fun night out at her favorite restaurant. is a great site for saving at local restaurants.  Alternatively, consider one of Darden Restaurants’ brands such as Olive Garden, LongHorn Steakhouse, and Cheddar Scratch Kitchen.

2. Go on a trip – If you have the budget, consider going on a trip to celebrate mother’s day.  You can go on a trip with your mom or give her dream vacation as a gift.  Even if the getaway is to a nearby city, the relaxing weekend will be enough to unwind.  Get some inspiration at Expedia and Priceline.

3. Go to a show, tour, or event – Whether she’s an Elton John fan or loves Cirque du Soleil, a fun night out is a great way to celebrate your mother.  Check out local events near your house at Ticket City, Ticket Liquidator, Ticket Network, Ticket Counter.  Busch Gardens is another fun idea for mother’s day.

4. Take a hike – If your mom loves outdoor activities, take a hike in a nearby park.  If she isn’t fond of hikes, you can go to a local park and enjoy a picnic.

5. Visit a winery – If you live near a winery, take the day off to drink some wine!  Check out Groupon for deals and ideas of where to go.  You don’t have to live in Europe to enjoy great wine!

6. Take a class together – If you have the budget, take a class about cooking, sewing, or anything else that might interest you!  In addition to learning something new, it’ll be even more special because you are together.

7. Watch a movie – Whether you go to the movies or watch something at home, this will be a great activity to relax.  In addition, a family movie is perfect to include the kids.  For the older folks, I recommend Lady Bird, which is a mother-daughter movie. Don’t forget the popcorn!  Here is a list of movies to watch with your mom on her day.  If you go to the movies, get your tickets at Fandango.

8. Take your mom to the spa –  Fun activities can be more meaningful than presents.  You can either go to the spa with her or give her a gift card.  Either way, she will feel pampered and special.  Grandma can come along too! I recommend Spa and Wellness since they offer a variety of relaxing treatments.  Click here to learn more.

9. Get your nails done –  Pamper your mom by taking her to get her nails done.  After all, mother’s day is all about her!

10. Bake with your mom – This is another fun activity that is perfect to include the kids.  Foodstirs has the best baking kits and recipes.  Brownies are always a good idea!

No matter what you do on this special day, the important thing is to spend time with your mother.  Make it all about her.  Spoil her with breakfast in bed and anything else that she likes.  Do you have a special tradition on mother’s day?  Let me know in the comments below.

When, where and how to use cash back

We’ve covered what cash back is and how it works. Now, let’s explain a little better when, where and how to make the most out of it.

First of all, do you like buying things online? There are lots of advantages, such as not having to walk for hours searching for products, making it easier to compare and find the best deals, and receiving your purchases at the comfort of your home. Online sales have been growing and came to stay, with more and more people adhering to this way of shopping.

If you are an online shopper, or if you’re just getting hold of it, then you should be earning cash back. I mean, there’s absolutely no reason for you not to get part of your money back when making purchases, right? It’s so simple and effortless that you won’t shop in another way rather than the Lemoney way!

Now, how do you use it?

First, you sign up for free here. Then, you browse your favorite stores. Best Buy, eBay, Walmart, Target? We got them all. We have over 1500 stores of all segments: electronics, fashion, home & garden, sports – you name it! Once you find the store you want, search for the coupons it offers or simply click on “Shop Now”. It will redirect you to the online store; once you’re there, shop as usual.

(Friend’s tip: be sure you don’t go to another website before finishing shopping. Staying on the store’s site until the end of your shopping journey is the safest way to assure your cash back will be properly tracked – and paid.)

After your purchase is done, you will be able to check your cash back as soon as the store sends the info to us.

Easy, isn’t it? If you have any questions left, leave a comment below or send a message to our customer support. We’ll be more than glad to answer any questions you still may have.

Sign up now and start getting the best cash back rates today!

Thrifty Children’s Day Gift Guide

What kind of gift could be thrifty, attractive and make your baby thrilled? It’s difficult to give a perfect answer. In a world full of toys, technology, lights and sounds, we collected some out-of-the-box gift’s options which can make your kids happy and you thrifty!

1. An adopted pet
It’s very rare to find a child that never asked for a furry friend. But instead of buying a Cavalier King Charles Spaniel puppy, it’s possible to find puppies and kittens looking forward to a home. Besides saving a bunch and giving love to a baby pet in need, you can also buy dog food and everything pet on Lemoney, with coupons and cashback! Take a look at Petsmart and Petco for the best deals 😉

2. A day of activities (summer moments)
There are thousands of options when talking about a day with activities with the children. From a picnic in the park to a trip to Disneyland, you have an entire list to explore. And what can be better than quality time with who you love? Take this opportunity to enjoy Groupon local deals with 20% OFF and the best cashback in the country!

3. A handmade toy
If you’re the one who loves crafting and handmade items, this one is for you. You can make toys, bedroom decoration or even a beautiful card. It’s a very frugal way to show you really care! If you need some materials to start crafting, take a look at Staples and save on purchases you’d do anyway.

4. A piggy bank
They might start saving for a weekend trip, a chocolate snack or for going to the movies. But teaching your kids about finances since the beginning will help them to have it all figured out when they really need. Believe me: it will look like a game in the beginning – and they’ll seriously thank you someday! Click here to learn how to make your own piggy bank from recycled materials – or check on Walmart, Macy’s and Melissa & Doug for amazing deals!

Did you like these tips? Hope your kids like it and you all have an amazing Children’s Day!

Online Shopping — Huge Surge in Demand for Discount Coupons

Coupons are a regular part of the shopping experience, especially when it comes to grocery stores, drug stores and other places selling everyday items. Walking down the aisles and seeing pull sheets of coupons on the shelves has come to be an expected experience. If a company wants you to shop their itens, why wouldn’t they make it worth your while?

Sometimes online shopping doesn’t quite have the same offers that you would see in a brick and mortar store. This can be frustrating, especially since more and more shopping is done online all the time. Add in the fact that you are also usually paying shipping and handling fees, and it hardly seems worth it to shop online instead of in person. Fortunately, more and more companies are responding to the demand for online shopping coupons. Over the past couple of years, there has been a noticeable surge in the demand for discount coupons, and some retailers are starting to respond.

The Best Way to Get Online Deals
You can rely on individual stores and brands to offer online coupons and discounts, but this isn’t always effective. You have to wait around for them to offer deals and sales, and you are never guaranteed a discount of any kind. On top of that, certain brands might not feel like online discount coupons are necessary in order for their business to be successful. That’s why your best bet is to seek out online shopping communities that specialize in online coupons, discounts, and cash back on purchases.

What To Expect From an Online Discount Shopping Community
Online shopping communities like Lemoney are great because the whole focus of their business is online discount shopping, so there is always a discount to be had. You never log on hoping to find a discount, only to leave disappointed because it isn’t the right season, or the deals weren’t on the specific items you need. Companies like Lemoney exist specifically to fill a need identified by so many shoppers: the need for more discount coupons for online shopping. If what you’re looking for is a deal or discount, sites like this are the best way to find it.

Is It Too Good to Be True?
Constant discounts and deals, cash back on your purchases, rewards for getting friends to sign up—it might sound too good to be true, and while it most certainly is good, it’s also perfectly true. Companies like Lemoney benefit from your purchases and from you encouraging your friends to shop with them as well. They are able to offer you these deals, discounts, and cash back because it keeps their business going. Much like any other store that offers loyalty programs or discounts, online shopping communities like Lemoney are able to provide their customers with savings to say thank you for shopping with them.

There is a surge in demand for discount coupons for online shopping, and fortunately, online shopping communities like Lemoney are here to meet that demand. For information on how it works, please visit the Lemoney website.

A Guide on Community Commission


As more people turn to the internet to do their shopping for household items, clothing, groceries and entertainment, cashback programs are becoming increasingly popular. In a nutshell, cashback sites allow you to earn money back – cold, hard cash – while you shop for items from the stores that these sites partner with. There is really no limit to how much money you can make, and cashback rates vary from site to site. Retailers will also offer special cashback rebates to online shoppers so that people can double, triple, or even quadruple their earnings. Cashback is typically deposited in an online account, such as PayPal, although many Cashback sites will also send their clients checks upon request.

Cashback programs operate similarly to how a rewards program works: . If you purchase high-ticket items such as airplane or travel tickets or entertainment devices, you can earn high percentages of cashback on these purchases.

Community Cashback

There are multiple cashback sites in operation right now, and more cropping up by the day. It’s important that consumers choose cashback sites that will benefit them the most in the long run. For example, if you’re signed up with a cashback site that only partners with online retail stores you barely shop at, the chances are high that you’re not going to make a lot of cashback. Conversely, if you choose to sign-up with a cashback site that features many of your favorite stores, stores that you already frequently buy from, then you’re going to have a higher rate of cashback.

Some cashback sites offer what’s called “community commission.” Community commission allows consumers to earn cashback not only on their own purchases but on the purchases of people in their community, too. When one person signs up for a cashback site, they’re given the option of inviting other people to join their community. The more people who sign up and shop, the more cash rewards that individual receives; he or she earns a commission on every purchase made by a member of that online shopping community.

Send Those Invites!

When consumers start an online shopping community, they can invite as many people as they want to join their site, often through platforms such as Facebook or Google Plus. The more connections they make, the more money they redeem: it’s as simple as that!

Cashback isn’t the only benefit to joining a Cashback site and starting an online shopping community, however. Many retailers will offer special deals and rebates only to members of their partnered cashback site. That means that cashback clients are not only earning money while they shop, but they’re also saving money. It’s a win-win situation.

Join Today

The sooner you join a cashback site, the sooner you’ll start earning cashback. Setting up an account is free and will take you only a few seconds. Since many people still don’t know about cashback sites, many people have yet to join an online shopping community and reap all of its benefits! Join today and you can start saving money on all kinds of purchases, from groceries to cat litter, and from children’s toys to books and furniture!

Because cashback sites partner with different stores, it’s important to sign up with a site that offers you the most variety and the most selection so that you can shop for the majority of your online shopping needs via that cashback site. Make sure that the site you sign up with is partnered with stores you already frequently shop at; this will help you earn more cashback on purchases you make regularly anyway. Signing up with a cashback site that partners with a variety of leading and reputable stores will also increase your chances of finding members to join your community. When people realize how much money they can save – and make – by joining an online shopping community, they’ll be eager to join!

As increasing numbers of people of all ages and demographics shop online, online shopping is becoming easier, more convenient, and, as cashback sites indicate, more geared towards savings and value. Embrace the future: set up your own community of online shoppers! You won’t regret it. In fact, you’ll appreciate all the savings and deals you have access to simply by being a member of a community commission program, and you’ll absolutely love getting all that money back!