Hey bargain hunters, I’m starting a series of posts about deal sites, starting with FatWallet. Check back this week for more chapters!

Before I ever hit the ‘Buy now’ button when shopping online, I do a quick Google search for coupon codes. Sometimes I nab a decent discount, but most of the time, the code doesn’t work. Worse, the same codes often appear on numerous sites. It got me thinking about how these deal sites work. Are they a waste of my time?

For those in the know, FatWallet is considered the king of the deal sites. Founded in 1999 by Tim Storm, FatWallet averages 1.96 million unique visitors a month who look at approximately 50 million pages, says its marketing maven Laura Pagles. And yes, she added, the site is still growing despite these harsh economic times.

“I think it’s natural when times are a little rough for us to turn to each other and our communities. I think that’s where our strengths are. There’s power to have that many people to rely on,” she said.

FatWallet’s one little secret that its users may not realize is that many of the deals come straight from the online stores themselves. FatWallet doesn’t have an army of employees hunting down exclusive coupon codes — it only has 42 people. Instead, it is an affiliate of more than 500 retailers so if you buy an item through a FatWallet link, FatWallet gets a piece of the sale.

That’s how deal sites survive. Because of affiliate programs, FatWallet, Slickdeals.net, DealCatcher.com and thousands of other deal sites make a nice living just by posting deals online and hope consumers choose their site as the go-between. More on affiliate programs on another post.

But then I wondered, if FatWallet has access to all the same deals as the thousands of other sites, what makes them so special?

Why does FatWallet have 898,658 registered users?

Pagles offers two reasons: Forums and a cash-back program.

FatWallet relies heavily on users who swap coupon codes and sale specials in the forums. Forums are moderated 24/7 by staff so spam doesn’t get out of hand. If you’re a newbie to the site, Pagles suggests starting with the Hot Deals forum, which accounts for one-third of the site’s traffic.

“Learn from the rest of the members. There are some really savvy shoppers in our forum. If you watch and learn and ask questions, you can really get a lot of guidance,” she said.

Its cash-back program is unique compared to other deal sites I’m familiar with. If you sign up for the program and shop at participating merchants, FatWallet shares its wealth and pays you back a small percentage of the purchase — between 1 to 20 percent. After 90 to 121 days of the purchase, you can request a check be mailed to you.

Pagles says that there’s enough in her account by the end of the year that she uses it for Christmas shopping. Not every store offers cash back (no Amazon.com darn it!) but definitely check it out.

Next segment: Forget the hunt, Deal Locker says its coupon codes work. Also, Getting the best deal at Buy.com

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