How can Gratis do this?

How can they give away FREE iPods, Do they make a profit at all?

Yea they make a healthy profit. They get money from the offers that people do. And seeing that many people don't complete the whole thing they are banking on their money. They have plenty of money to pay for the iPods.

Absolutely. Put 75% of the people on hold and they make a very nice profit. D

Advertising is a tricky business, because no matter how much you spend, you're never guaranteed success. But this particular gimmick DOES guarantee that an advertiser WILL get new customers. Now, that's worth a lot to these businesses (I heard a rumor that they pay Gratis $25-$90 per new customer). After 5 referrals, Gratis should have enough to send out a rather expensive incentive gift and still have enough dough left over for themselves.

I think one of the dillemmas with the Gratis offer (and what is probably causing them to tighten up on peoples' accounts lately) is that 5 referrals isn't really enough to guarantee a healthy profit. If, from the beginning, they had required 7 or even 10 referrals, I don't think it would have affected people's efforts to obtain their iPods. Now, of course, that's the standard, so they really can't go back and change it.

There may come a time when this "business model" runs its course and fades away; I hope we all get to take advantage of it before this happens. There has already been one copy-cat failure (ipods-free), and I think there will be more to come.

-=jfs=-

[quotef97d9532ed="KennyUK"]How can they give away FREE iPods, Do they make a profit at all?[/quotef97d9532ed]

Folks from Uk aren't too bright roll

yep, and they think the same thing about us.

"Those stupid flililis. They actuallyyy think they could get such a high pricred peice of hardware for a very low price. Tisk Tisk"

lol.
but really, they are gettin screwed over. hehe.