Economics of Comparison

The Revenue Trap: Why Comparison Sites Don't Want You to Find the Cheapest Item

It sounds counterintuitive: shouldn't a comparison site show you the cheapest price? Not if the cheapest retailer doesn't pay an affiliate commission. Most "impartial" comparison tools are actually carefully curated lists of partners who pay to be seen. Here is the dirty secret of the affiliate revenue trap.

The Business Model You Don't See

When you use a "free" price comparison site, you're not the customer.

You're the product.

The actual customers are the retailers who pay the comparison site to send them traffic.

Here's how it works:

  1. You search for a product
  2. The comparison site shows you "results"
  3. You click on a retailer
  4. The comparison site gets paid a commission (typically 2-10% of the sale)

Sounds reasonable, right? The site provides value, they get compensated. Fair trade.

Except there's a catch: they only show you retailers who pay them.

The Hidden Filter

Most comparison sites don't actually compare all prices. They compare prices from their "partner network."

If a retailer doesn't have an affiliate program or doesn't pay a high enough commission, they simply don't appear in the results.

This means the "cheapest price" you see is actually the cheapest price among retailers who pay the comparison site.

There might be 5 other retailers with better prices, but you'll never know they exist.

Real Example: Laptop Shopping

Let's say you're shopping for a Dell XPS 15 laptop.

Here's what a typical comparison site shows you:

The site proudly declares: "Retailer A has the best price!"

But here's what they didn't show you:

You thought you got the best price at $1,299. You actually overpaid by $100.

The comparison site made a commission. The retailer made a sale. You got screwed.

The Commission Bias

It gets worse.

Not all affiliate programs pay the same commission. Some retailers pay 2%, others pay 8%.

Guess which retailers get prioritized in the search results?

A comparison site makes more money sending you to a retailer that pays 8% commission than one that pays 2%, even if the 2% retailer has a lower price.

So the results aren't just filtered by "who pays us." They're also ranked by "who pays us the most."

The Math Doesn't Lie

Let's break down the incentives:

Scenario A: Show the Cheapest Price

Scenario B: Hide the Cheapest Price

By hiding the cheapest option, the comparison site makes 4.8x more money.

You pay $20 more. They earn $7.60 more.

The incentives are completely misaligned.

Why This Happens

Comparison sites aren't evil. They're just businesses operating within the constraints of their business model.

To survive, they need revenue. Affiliate commissions are how they generate revenue.

But this creates an impossible conflict:

These goals are often in direct opposition.

When forced to choose between serving you and making money, most comparison sites choose money.

The Justifications

When confronted, comparison sites offer familiar defenses:

"We need revenue to operate"

True. But you could charge users a subscription fee instead of hiding the cheapest options. Most users would gladly pay $5/month for truly impartial results.

"We show affiliate relationships"

A tiny disclaimer buried in the footer doesn't count as transparency. Most users have no idea they're seeing filtered results.

"We still provide value"

Compared to visiting each retailer individually, yes. But compared to what you deserve (the actual cheapest price), no.

How to Spot the Revenue Trap

Here are red flags that a comparison site is filtering results for profit:

  1. Missing obvious retailers - If Amazon or Walmart doesn't appear, something's fishy
  2. Same retailers every time - If you see the same 5-10 stores across all products, they're showing partners, not best prices
  3. Vague disclaimers - "We may earn a commission" without details about how it affects ranking
  4. "Best price" claims without proof - If they don't say "best price among our partners," they're being deceptive
  5. No way to opt out - Can't filter to only show non-affiliate results

The Alternative Model

It doesn't have to be this way.

A comparison site could:

This would require putting user interests above short-term revenue. Most companies won't make that choice.

But some will.

Find the Best Deal: Escape the Revenue Trap

FindPrices helps you compare prices across ALL retailers, not just the ones that pay us. The lowest price always appears first.

Compare Pricing Now - It's Free

What You Can Do

Don't trust comparison sites at face value. Here's how to protect yourself:

  1. Check manufacturer websites directly - Often the cheapest option
  2. Search for the product on Google - Look at page 2-3, not just top results
  3. Ask in forums/Reddit - Communities know which retailers have the best deals
  4. Use multiple comparison tools - Different sites have different partner networks
  5. Read the fine print - Look for how affiliate relationships affect ranking

The Bottom Line

Most comparison sites aren't designed to save you money. They're designed to make themselves money.

The cheapest price often comes from a retailer that doesn't pay affiliate commissions. Which means it won't appear in their results.

If you're relying on traditional comparison sites, you're probably overpaying.

Use tools that prioritize your savings, not their commissions.

About the Author

Ben is the founder of FindPrices. After years of watching comparison sites steer users toward expensive retailers, he built a tool that ranks by price, not by commission. Follow him on LinkedIn.