When it comes to search, Microsoft is a distant third behind Google and Yahoo. Talks of a search advertising deal with Yahoo still remain unclear, so the software giant is hoping free money will help it gain ground on Google.

Microsoft will now offer rebates to those who use its search engine to find and buy products online. Nearly one third of all searches are related to online purchases, according to Microsoft.

Live Search cashback, as the program is called, will offer rebates determined by Microsoft ranging from anywhere from 2 to 5 percent of the product price, according to The New York Times. Barnesandnoble.com, Circuit City, eBay and 700 other online retailers have already signed on.

In April, Microsoft accounted for only 9 percent of U.S. searches, according to comScore. Google reigned supreme with a 62 percent share of the market, and Yahoo came in second with 20 percent.

The rebate strategy may already be working for Microsoft. The New York Times reported that eBay, one of the largest ad-buyers on Google, may shift some of its advertising budget to Microsoft as a result of the program.

"It is a great opportunity for buyers who come to eBay. And it is all about driving demand for our sellers," said Matt Ackley, eBay's vice president for internet marketing and advertising.