We covered how you make money with Swagbucks, but how exactly are they making enough money to be able to shell out over $250 million in rewards?

Well, it’s kinda simple, really.

It’s very similar to the rewards program with your credit card.

When you use your credit card, you probably get points for paying off your statement each month. With those points, you’re able to redeem rewards.

Sometimes that’s gift cards and sometimes it’s just exclusive deals for flights. Either way, you’re getting some kind of reward.

That’s because the credit card company is paid by Companies/Brands to promote those services to boost customer traffic and activity.

So, this same idea applies to Swagbucks… Except you don’t have to spend money to make money.

Swagbucks makes money from market research firms for promoting surveys to targeted demographics.

That’s why Swagbucks has those “freebie” questions; they help Swagbucks match you up with relevant surveys.

This, in turn, helps Swagbucks match us with coupons and deals that are more applicable to our lives.

It’s kind of the same concept as Facebook ads.

Brands pay big bucks to match products to demographics.

The perks about Swagbucks is that they also share their pay day with us.

That’s why you’re able to earn Swagbucks for relevant surveys.

This is similar to how Ebates and other similar sites make their money.

They are providing you with a cashback offer when you “click through” their site.

And it’s important that you click through Swagbucks so that Companies/Brand know that certain traffic is coming thanks to Swagbucks.

So when Swagbucks gets paid from these Companies/Brands, they’re actually giving some us of our money back.

Hence, cashback.

I guess this also means they’re helping us spend money more easily. But whatever.

I’ll take the 8% cashback on Reebok any day.

Again, it’s all about Brands/Companies trying to get in front of us as much as possible.

And they know that millions of people are signing up for Swagbucks every single year, watching those threads of videos in order to get their daily Swagbucks.

So they’re forking out cash for these videos and ads to sit muted in the background while I study for school.

But it seems there are at least some people clicking these ads and making it worth it to these brands.

And the way Swagbucks gets paid on this varies.

It seems like they’ll get paid a percentage of whatever revenue is made through those of us clicking those ads.

And I’m sure Brands/Companies pay a pretty penny just to get in front of us on Swagbucks.

So next time you find yourself wondering how on earth Swagbucks can be giving over $2 million in rewards, just remember that they have some big names knocking on the door just trying to get in front of this audience.

So you should feel really special.

And keep on getting those Swagbucks!