how it works
So how exactly can anyone get free stuff online?
It's actually a very clever use of affiliate marketing.
First you need to understand that actually, the iPhone is not free. Of course it isn't, because nobody gives away expensive gadgets without expecting something in return. But you won't ever pay a penny...
Using exactly the same business method as cashback sites such as Quidco - freeiphone4me and freebiejeebies work very closely with large and respected companies, referring new potential customers everyday, and collecting the cashback they offer in return to purchase and send you a free iPhone.
When you sign up, you will be prompted to complete one of the advertisers' offers. There are many to choose from, incuding a number of free trials. Once you have completed an offer, you must then refer a number of others to do the same.
The companies pay approx £25 cashback for every person that you introduce who tries out their product. What makes this so good is that, due to the high value companies place on gaining exposure to potential new customers, cashback amounts are high - meaning you only need to refer a relatively small number of people before you get your free iPhone.
Advertising in this way, even with the large cashback/commission amounts companies pay, is far cheaper and more productive than running an untargetted TV or Radio advertising campaign which can cost hundreds of thousands of pounds, so more and more companies are getting involved.
A selection of the companies we deal with includes LOVEFiLM, Sky Digital, HSBC, Intuit, Coral, Alliance & Leicester, Ladbrooks, 888.com, and the AA.
an example
You sign up for a free iPhone 3G S, worth £350.
In order to be eligible to receive the iPhone 3G S, you need to refer 16 people.
Each of the 16 people must complete one company's offer (many are free of charge e.g. free trials of DVD rentals).
The company pays £25 for each person referred.
The total commission is £425 (17 x £25 - this includes you!), which is used to purchase and send you the iPhone 3G S. The remaining £75 is used for running costs and profit. So you see, no-one is giving away the iPhone, but you get it for free and all parties benefit.
Here is the same example in a different format:
Who |
Spent |
Received |
You |
£0.00 (nothing!!) |
A free iPhone and some free DVD rentals |
Freebie Site |
£350.00 |
17 Commissions from the advertisers totaling £425.00 - a profit of £75.00 |
Advertisers (LoveFilm) |
£425.00 - far less than an advertising campaign |
17 potential new customers who will each refer up to 17 more potential customers |