Microsoft goes down-market with cashback search

With great fanfare, Microsoft today announced its Live Search cashback site, which will pay back cash to you if you use the service to find a product, and then buy from a participating retailer. But this down-market approach to search won't help Microsoft in its losing battle with Google. It's all about great search, which is where Live Search cashback falls short.

With Live Search cashback, you search for a product, and if you buy from any of the specific retailers, you'll later get cash back, usually from 2 to 5 percent, although at times up to 30 percent.

You'll only get that cash back, though, when you shop at participating retailers. There's a good list of them, including Circuit City, New Egg, and others. But there's a longer list of retailers that don't participate, such as Amazon. And that's where the problems come in.

Let's say you're looking to buy the 100 Days, 100 Nights CD from the great retro-soul group Sharon Jones & the Dap Kings. Head to Live Search cashback. Search for "Dap Kings." Or "Sharon Jones." Or "100 Days, 100 Nights."

You won't find it anywhere.

Head to Google and do similar searches, and you'll find your results right at the top of your screen. And, of course, you'll find it right away at Amazon.

That's not the only instance where you won't find what you're looking for. There are plenty of others.

There's no doubt that Microsoft will gain some temporary market share with Live Search cashback. After all, when you give money away, there are always takers.

But in the long run, what keeps people going back to a search site is how effective that site is, not rebates. And Google still beats Microsoft by a long shot for product searches. Microsoft needs to improve its search, not throw money at people, if it wants to beat Google.

Like this blog? Subscribe to the RSS feed!