Click to enlarge

Bill Gates may have perked up some ears earlier this month when he said MSN might hand out cash or free software to attract users for MSN Search, but it turns out Yahoo and Google may already be doing something of the sort, though via other companies, writes the New York Times. Web search firms Blingo and GoodSearch, which license search technology from Google and Yahoo and earn a commission from them for any ads that visitors click on, give away some of that revenue as prizes or donations to users' charities.

Blingo gives away iPods, PlayStation consoles or other prizes, whereas GoodSearch makes donations to schools and nonprofit groups named by users.

"This isn't as crazy as it sounds," Rich LeFurgy, a principal at Archer a San Francisco marketing consulting firm, is quoted as saying. "I think of it as the business model that's waiting to happen."

Nevertheless, according to Forrester analyst Shar VanBoskirk, "You'll always get people who are willing to become your customer for a bribe," she said. "It's a pretty expensive way to get customers who might not be qualified for your business."