Free After Rewards & Cash-Back Rewards. Rewards Programs Are Not Free Unless Combined With Other Strategies.

Offers that are “free after rewards” have gained a lot of ground in the promotional arena over the last few years. Many retailers have gradually replaced “free after rebate” offers with “free after rewards” offers, making rebates much less common than they used to be. Rewards programs may also be called “membership programs” or “loyalty programs”. Sometimes the rewards are called “cash-back” rewards. In this sense they are a type of rebate, but they’re not like the mail-in rebates that reimburse up to 100% of the sale.

Since the word “free” is commonly associated with rewards programs, it’s prudent to discuss these offers on a site that teaches you how to get free stuff.

4 Types Of Rewards Programs & The Rewards They Offer

There are 4 types of rewards programs: retailer rewards, brand/manufacturer rewards, third-party rewards and credit card rewards.

Retailer rewards are offered by the retailer and they commonly offer store credit for additional purchases. Retailer rewards could be better than most coupons. The store credit is a larger fraction of the sale price than most coupons or other rewards mentioned below. It may even be up to 100%, which is most common during the Black Friday shopping season. So they’ll say in the marketing copy that it’s “free after rewards”. This is not actually free as explained below.

Brand or Manufacturer Rewards are offered by the manufacturer when you purchase specific products. Examples are Disney Movie Rewards or Coca Cola Rewards. They’ll offer points which you accumulate through an account online. Once you reach enough points then you can use them to order additional products.

Third party rewards are offered by sites like Swagbucks and Ebates. These are third parties that have agreements with the retailers and they track purchases through membership cards, credit cards, coupon codes or purchases made through the third party’s website. When you sign up for these programs they’ll accumulate credit or points which allow you to make additional purchases. You might see the phrase “get paid to shop”, but you’re not getting paid; you’re getting a small discount. See also Get Paid To (GPT) Programs.

Credit Card rewards are offered with the use of a credit card. There are some special considerations for credit cards as described below. Credit card rewards could be cash-back rewards, frequent flyer miles or points for other products and services. The rewards can be up to 5% of the price for purchases in specific categories, but usually they’re 1% or less.

Are Rewards Actually Free?

Since you have to make purchases to accumulate the rewards, no rewards are free on their own without additional steps. While retailer rewards could be up to 100% of the price, you still have to make a purchase to get that store credit. Rewards are NOT actually free unless combined with other strategies.

Certainly don’t make additional purchases just to reach the payout limit of any rewards program. This is a psychological trick that rewards programs play on consumers.

Rewards can still be good since they offer discounts and help you spend less in certain instances, but the rewards should never persuade you into spending more. For most rewards programs, you should just sign up with them and let them run in the background. Then check them every few months and if you’ve accumulated enough points to buy something it’s a nice bonus. But that should not drive any of your purchase decisions leading up to that point.

Is “Free After Rewards” Actually Free?

NO! These offers are not actually free. Don’t the gimmicks trick you. Don’t let other experts trick you. Make a conscious note of this now. Any time you see an offer that is “free after rewards”, it is not actually free. It’s a variation of “buy one get one free” which is also not free. More specifically it’s an offer to “buy one, get equal store credit to buy anything else”.

There are plenty of coupon resources and other free sites, such as Coupon Mom, which list products that are free after rewards right next to other products that are actually free. They are still not free, even when listed on these sites or by these experts.

One of the goals of this site is to help consumers see past the gimmicks and make decisions that help them spend less when shopping, not more. Notice I didn’t use the common marketing word “save” in this instance. Marketing copy will tell you that you’re “saving” by taking the deal, but you’re not saving if you’re spending. Saving is when you keep your money in the bank.

Rewards can be an excellent way to spend less under any of the following conditions:

• You were already going to purchase the item before you noticed the offer
• It’s an item for which you would pay full price
• You know you will need that item in the near future
• You know it will be beneficial to add that item to your stockpile, and it may be the cheapest you’ll get it.
• You are already buying another product in the store and you might as well get the “free after rewards” items along with it.

If you were not already planning on purchasing a specific item or it’s not something that you will absolutely use out of your stockpile, then don’t let the “free after rewards” phrase trick you into making the purchase.

While they are not free, rewards are a common offer that I take advantage of for stocking stuffers during the Black Friday shopping season. In this case I know I need stocking stuffers and that is one of the cheapest ways to get them. Extreme sampling could be another way.

Free after rewards is not free.  If you have to buy something, its not free. If you have to pay money out of pocket, then you should make a conscious effort to decide whether you need the product or not.

How To Get Free Rewards and Reward Freebies

Combining multiple freebie strategies is a common trick among freebie hunters and expert shoppers. One example is when you combine manufacturer coupons with retailer coupons (called stacking) to potentially get a product that is completely free.

Rewards on their own are not actually free, but they can be combined with other strategies. If you get reimbursed for any purchases for which you earn rewards, then you essentially did not spend any of your own money and you collected the rewards for free. For example, you might be in charge of throwing an office party that is sponsored by the company you work for. You’ll make all party purchases on your own credit card, get reimbursed for all expenses, pay off the credit card and still collect the rewards. Those rewards are actually free.

Since points are a more economic incentive, they’re also offered for free in many instances and in various promotions. You might get free points as a Birthday Freebie. Or you might find free points on shopping deals websites. Sometimes you’ll simply have to enter a code into an account online to collect the points. One example is Disney Movie Rewards. As a member of this rewards program I’ve received free points on my birthday, by email during special events, on deal aggregator sites like SlickDeals.net, and even from family or friends who don’t participate in the program. When a family member buys a Disney movie, I can take the rewards code from their movie and use it in my account.

Dumpster Divers can also find additional rewards or points from under soda bottle caps or scratch-away packaging. I don’t believe the rewards alone would make dumpster diving worth it, but if you’re going to dumpster dive for other free stuff then rewards can be added to what you’ll find.

Do you have an additional way to get free rewards? Let us know.

Combine “Free After Rewards” With “Free After Rebate” Whenever Possible

Most retailers have a rewards program, including grocery, pharmacy, office supply, clothes, and other retailers. The retailers that most commonly include “free after rewards” offers are CVS, Walgreens, Rite Aid, Staples, and Office Max/Office Depot.

“Free after rewards” can be combined with rebates to increase your freebie loot. When the same store offers products that are free after rewards and at least one product that is free after rebate, then you can combine them to get them all for free.

Here is an example: On Black Friday a particular office supply store is offering $50 worth of items for “free after rewards” and a software item that is free after $50 mail-in rebate. Buy the items that are free after rewards to get the $50 store credit. Then use the store credit to purchase the item of software. Then claim the $50 rebate. By combining the two strategies you were able to get $100 worth of products for free.

In some cases it’s not worth it to obtain a freebie just because it’s free, but in this case I’d purchase the software even if I didn’t need it so that the products that were free after rewards are actually free.

The opportunity to combine rewards with rebates does not come around often, but when it does it’s awesome.

Credit Cards & Cash Back Rewards

Credit Card rewards are the most dangerous of them all. If you have any financial problems, if you carry credit card debt, if you have a gambling problem or any other problem with finances, then avoid credit cards altogether. If you don’t carry credit card debt or if you’re very organized and persistent, then you can benefit from credit card rewards. The rewards are only worth it if you NEVER have to pay any credit card fees. Only use a credit card to spend money that you already have. Pay the card off in full every month to avoid fees and then collect the rewards. This will also help you build your credit score.

Some of the best credit cards offer cash-back rewards between 1-5%. Frequent Flyer Miles are also a common reward for credit card users. Be cautious of how many credit cards you sign up for, since signing up for too many within a short period of time can negatively affect your credit score. One of the best ways to build your credit score is to pick the best credit card you can coming out of high school, pay it off in full every month, and keep it forever (don’t ever cancel it). Even if you’re late reading this after high school, the longer positive history you have with one card, the better your credit score will be.

Where Can I Find Rewards?

While rewards are generally not considered to be free on their own, they are a way to spend less and they can be combined with other strategies, so a rewards directory is maintained on this site. See Rewards Directory.