Summary:
How can Web sites afford to give away free iPods, laptops, gift cards, et cetera? The advertisements claim that you don´t pay anything: simply sign up for offers and refer friends to claim your free goods. This article explains exactly how these giveaway sites profit from the deal.

Details or Sample:
We’ve all seen the online ads: sign up, click on some links, refer a few friends and earn an expensive item. Sometimes it’s an iPod. Other times, you’re earning a new video-game console. There are also laptops, big-screen TVs and high-dollar gift cards available (among other things) depending on which site you visit.

You don’t have to pay for the privilege, either. Signup is free – and you don’t even have to enter a credit card number. Just sign up and start earning those expensive electronics.

This sounds like a ridiculous, obvious scam, but it’s not. Many Internet users have in fact earned or won their electronics from these sites. Some users upload photos of the delivery truck pulling up at their houses. Others post photos of their rewards. Another trust-builder is the fact that journalists have investigated some of these sites – and reported that the goods really do arrive as promised.

The truth is that many “giveaway sites” really do ship the items they claim to have in stock. You will receive your iPod, laptop computer or whatever else you signed up to earn. But how can these Web sites afford to give away items for free? Where do the companies get the money to do this? Did they legally acquire the iPods, computers, gift cards and other prizes? Are the items authentic or fake?

Another excerpt

Most sites work on a points system. An iPod, for example, could be worth two thousand points. That seems like a lot, but many sites will give you points just for joining. So in reality, you don’t have to earn all two thousand points: a couple of hundred or more are already credited to your account.

You earn the overwhelming majority of your points by completing offers. The giveaway site has hundreds, or even thousands, of links to advertisers: click on the links and complete the surveys, buy the merchandise, register for free newsletters, et cetera.

Example: You might receive one point for clicking on a link to a record club. But if you sign up for the club, you’ll earn more points – thirty, forty or more depending on which site you’re using to earn your free stuff.

Another excerpt
You should also read the fine print in the membership agreement. Many sites run promotions for a limited time, which makes it more difficult to earn enough points for your merchandise. And many of the giveaway sites limit accounts to one per household. So don’t try to convince your roommate to sign up to help you earn a free iPod unless the site allows multiple accounts in the same household.

If you understand why the site is motivated to give you free things – and you think that you can earn enough points to redeem for your stuff – it’s a good idea to join. Just remember that you probably won’t earn your merchandise overnight: you’ll have to spend lots of time signing up for mailing lists, visiting sites and completing offers in exchange for your stuff.

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