I imagine that you are wondering just how this can work, how can these companies afford to give away a free ipod, free playstation 3, free wii or free HDTV? Well now i will explain to you how
This works on the basis of affliate marketing, these companies get paid for everyone who signs up for an offer, by the respective offer company, and that is how they pay for the free gifts. It is important to know that the freebie sites make a profit from this.
They also get paid for advertising the companies that are in the offers avaliable, making it a profitable situation for them.
The companies that are being advertised are having to resort to this kind of advertising because this seems to be a new and upcoming way of advertising, they are not getting noticed in magazines and on TV, so they are trying new methods.
Everybody Wins
There has also been a recent CNN report BBC documentary on the freebie system that you can see below