For some strange, unknown reason people are unaware of the business models that all these giveaway sites use. Because people don't understand the concept, they immediately brand it as a scam, which I and many others can vouch that it isn't. Technically the business model is known as Viral Marketing (wikipedia it), and is a term used to describe the advertisement through word or mouth, whether it be though a geographical location or a society. Its a model that has been around for a very long time, but has only really gained momentum within the USA. Viral Marketing is slowly creeping to our British shores!
Below is a step by step guide to how the business model works. It also shows how these giveaway companies receive enough money to get you your free item, as well as make a clear profit.
Step 1) Giveaway companies get you to sign up to their website, and register your details. You are then asked to complete an offer. Some of these offers are free, and some of the offers cost around £5 or £10. The offers that are free will be trail offers. You wont be charged a penny unless you decide to stay with the service after the designated time.
Step 2) When you sign up and complete your offer, the company who you have completed the offer for will know that you clicked on a link from one of the giveaway sites. Because they now have your business, or the possibility of your future business, they will have made a profit. E.g. If you sign up, with no obligation, to the two week free trial of LOVEFiLM, then the company has the possibility of your future business. This could include a years subscription to the service, or item purchased directly.
Step 3) The giveaway site and the companies which you complete offers for have a contract of employment between each other. The ‘Offer’ companies agree that they will pay the giveaway companies a certain amount of money per sign up. Lets call the amount £15..
Step 4) In order for you to earn your iPod (or other gift) you need to get around 7 people to sign up under your referral link. This means that you will be generating £100’s of pounds to the offers companies, and well over a £100 to the giveaway companies. The ‘Offers’ companies make a profit, the giveaway sites make a profit, and you get your gift. Its that simple...
For more in depth info check out
http://www.gimme4free.co.uk/Guide_How_it_works.php
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