Now that Microsoft didn’t buy Yahoo and isn’t going to do so in the future, it is considering new ways to gain share in web search. The company is going to sort of buy share by offering users cash as part of its Cashback program for using its Live.com search engine:

Search for cashback deals at Live Search cashback. Each time you click a Live Search cashback listing, you’ll find great deals on the product you chose. Your results will clearly list the cashback savings you’ll receive off the store price, and your final bottom-line price that includes tax and shipping costs. Also look for this icon (omitted) when you search for a product on Live Search to find great cashback deals.

Compare and sort products by the bottom-line price. Click the best deal to go to the store. Everything you buy during that store visit will be eligible for Live Search cashback. On your first time using Live Search cashback, we will ask you for an email address so we can tell you how to quickly set up your free cashback account.

Keep saving money each time you use Live Search cashback. Every time you make a qualifying purchase, we’ll send you an email to confirm your Live Search cashback savings. When your cashback account reaches a balance of at least $5, you can claim your cold, hard cash.

This is an innovative approach to growing insofar that no other competitor in the search engine market has taken this road before, as far as I can tell. But I’m not convinced that Live Search Cashback will actually work out in the long run and help Microsoft close the gap between Live.com and Google.com. The software giant certainly can afford to give money away to its users, it is sitting on a big pile of cash. The question is, however, whether the incentives offered through Cashback will result in sustainable growth.

I remain skeptical, because I believe Microsoft will need innovative search products in addition to innovative marketing if it wants to seriously compete with the world’s number one search engine Google.