Cheapbills.com.au Pricing and Fee Structure

The core value proposition of Cheapbills.com.au, as explicitly stated on their homepage, is that their “comparison service… is 100% free to use!” This “free” model is typical for comparison websites across various industries, from insurance to flights. However, “free” to the consumer doesn’t mean the service operates without a revenue stream. Understanding how they make money, and the implications of this structure, is essential.

How Cheapbills.com.au Makes Money

Cheapbills.com.au primarily generates revenue through affiliate commissions and referral fees.

• Commissions from Providers: When a user successfully switches to an energy, internet, or PayTV provider through Cheapbills.com.au’s referral, the new provider pays Cheapbills.com.au a commission. This commission can be structured in several ways:
  • Flat Fee: A fixed amount paid per new customer acquired.
  • Percentage of Savings: A percentage of the estimated annual savings for the customer, which incentivises the platform to find genuinely cheaper deals.
  • Long-Term Value: A commission based on the anticipated lifetime value of the customer, often paid out over time.
• Lead Generation Fees: For financial products like home loans, credit cards, and other loans (which are the ethically problematic elements), the revenue model is often based on lead generation. Cheapbills.com.au might be paid a fee for simply passing on a qualified lead (a user’s contact details and interest in a financial product) to a bank or lender, regardless of whether the loan is ultimately approved.
  • Ethical Concern: This direct facilitation and monetisation of interest-based loans is the primary ethical conflict, as it means Cheapbills.com.au profits from transactions that are strictly forbidden in Islam. Even if a user doesn’t take out the loan, the act of generating and selling the lead contributes to the Riba economy.
• Advertising: While less prominent, comparison sites can also generate revenue through display advertising or sponsored content, where providers pay to have their offers highlighted or featured more prominently.

Implications of the “Free” Model

The “free” model is attractive to consumers, but it has inherent implications:

• Potential for Bias: As discussed earlier, the commission structure can create an incentive for the platform to favour providers who offer higher payouts, potentially at the expense of the absolute best deal for the consumer, or indeed, the most ethically aligned deal. This is why independent research is crucial.
• Data as Currency: While no money changes hands from the consumer to the platform, consumers “pay” with their data. Information about their usage habits, current providers, and contact details is collected and used, not just for the comparison service, but potentially for marketing and other purposes detailed in their privacy policy.
• Limited Transparency: The exact commission rates and agreements between Cheapbills.com.au and its partner providers are typically confidential business information. This lack of transparency means consumers cannot fully understand the commercial drivers behind the recommendations they receive.
• Impact on Provider Competition: While comparison sites can foster competition, they can also lead to a situation where providers budget significant amounts for commissions, which might indirectly impact the rates they offer to direct customers or those acquired through other channels.

What This Means for Ethical Consumers

For those adhering to Islamic principles, the “free” pricing model of Cheapbills.com.au becomes irrelevant when its underlying revenue generation involves impermissible transactions. The primary concern is not what the user pays, but what the platform earns and the type of services it promotes.

• Avoiding Complicity: Even if you only use Cheapbills.com.au for utility comparisons and avoid their financial product sections, the very act of engaging with a platform that derives revenue from Riba can be seen as contributing to or normalising an impermissible system.
• Seeking Truly Ethical Alternatives: The best approach is to seek out comparison services or financial advisors who operate strictly within ethical frameworks, whether it’s a government-backed, unbiased utility comparison tool or a certified Islamic financial institution for Riba-free finance.

In summary, while Cheapbills.com.au’s service is free to the end-user, its revenue model, particularly its involvement with interest-based financial products, raises significant ethical concerns that should prompt discerning consumers to seek out alternatives.

The Importance of Independent Research Beyond Comparison Sites