How it works

The way these sites work is pretty simply. From the welcome page you know that you have to sign up, complete an offer then refer ‘x’ amount of people to do the same. This page will highlight what exactly is happening as you do so.

The Freebie Site

The freebie sites are the ones resonsable for giving you your free gift. But this can only happen once the ‘x’ amount of referrals are reached. They are able to afford to give you a gift for free because once you do an offer, a sum of money is given to them from the site you complete an offer for. With that sum of money they are able to make a little profit aswell as purchase your gift. This is why the number of referrals needed for different items differ so greatly.

The Offer Site

The offers site are using a marketing strategy call affiliate marketing. Basically, by you completing an offer for them, they are hoping you will enjoy the service so much and carry on even when you have gotten your free gift. Take for example the LOVEFiLM offer, which is on many freebi sites. They are the consumers 2 week trials to try thier DVD rental service. In doing so you dont pay any money but also get a taster into how good the company is. If you like the service there is more chance you staying on and contiuning with them after the trial is over.

To companies this is not as great a risk as doing TV ads, as it doesnt cost as much, yet they are reaching a wide audience in the process.

The Consumer

We the consumer are in a great position. We are able to try out services we may not have known had excisted for free as well as get an item we want like a free iPhone or free Nintendo Wii. When we sign up and complete an offer, we are releasing money for the freebie site to use to buy us our free gift, and when we refer others they are also helping us to get our free gift, and themselves too. So we end up in a total win win situation with the gifts we always wanted for free.

As you can see, for companies, this is a very clever, cost effective way of advertising for them and in doing so they release money for the freebie site to help ‘reward’ us for choosing thier service. Its a system that benefits all parties involved so doing this would not only help you, but help others to get the things they want.