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As you can imagine merchants have large marketing budgets, this marketing money pays for newspaper ads, TV spots and other places you see ads in everyday life. Almost every major merchant allocates a portion of this marketing budget to online advertising. This is usually done through an affiliate marketing arrangement where the merchant joins a third party tracking network.
The tracking network enlists websites to publish merchant ads in return for earning a percentage of any merchant sales generated.
When an end user (you) clicks through one of these ads and purchases a product it is tracked by the tracking network and merchant.
The merchant in turn gives a percentage of the transaction value to the tracking network who in turn pass it on to the website.
Quidco works by returning all of that percentage back to you the purchaser. Because quidco is a cooperative you will get back every penny that is passed on from the network to quidco for your transaction. Quidco is able to function as a cooperative by keeping back £5 from your first yearly payout; if you don't earn enough cash for your payout you will not pay £5. This deduction is only made once a year no matter how many payouts you make or how much cash you earn.