HOW CAN GRATIS PAY OUT $50 PER COMPLETED OFFER??!!

Greetings. Being new to this, I am wondering how Gratis and others can, effectively, offer around $50 for the completion of offers than might get FAR LESS if you had these very same offers up as banner ads as an affiliate?

Is it because your 5 referrals are REQUIRED to find 5 QUALIFYING referrals who find 5 MORE, hence 25 completed offers plus 6? (If this is the case, it is not spelled out in T & A).

Or is it because, even those 5 people you get, and those you get who refer a few friends but never complete an offer, will often set a chain of subsequent referrals in motion, perhaps hundreds of levels deep, such that over-time the company(s) have statistically found it worthwhile to lose money on qualifiers since they gain so much on non-qualifiers?

first of all, do you honestly think Gratis pays 300 bucks per iPod? hell no.

secondly, consider how many people never get all their referrals or get put on hold, etc. that's straight profit for gratis (i.e. they get paid for completed offers and never have to give anything away in return).

[quote2a930bd9c2="campusnet"]
Or is it because, even those 5 people you get, and those you get who refer a few friends but never complete an offer, will often set a chain of subsequent referrals in motion, perhaps hundreds of levels deep, such that over-time the company(s) have statistically found it worthwhile to lose money on qualifiers since they gain so much on non-qualifiers?[/quote2a930bd9c2]

that one.

[quote355adf4ef2="dcrainmaker"]first of all, do you honestly think Gratis pays 300 bucks per iPod? hell no.
[/quote355adf4ef2]


my guess is they pay $150 max.

[quote20f9e350af="campusnet"]Or is it because, even those 5 people you get, and those you get who refer a few friends but never complete an offer, will often set a chain of subsequent referrals in motion, perhaps hundreds of levels deep, such that over-time the company(s) have statistically found it worthwhile to lose money on qualifiers since they gain so much on non-qualifiers?[/quote20f9e350af]

That is exactly correct. I've read some economic modeling of this and reports from sites owners that suggest they pay out on 15% of their users.

However, that said they are paying nearly full price for their goods. They [i20f9e350af]may[/i20f9e350af] get a 10% discount for quantity, but they are not getting a 50% discount as has been posited - that would be seriously below wholesale.

Yes, I severely DOUBT that Gratis is paying $150. At the lowest, I'm assuming they pay $200 per iPod (on the Minis). Things may be more expensive for everything else.

[quote2311776f6f="doylnea"]
However, that said they are paying nearly full price for their goods. They [i2311776f6f]may[/i2311776f6f] get a 10% discount for quantity, but they are not getting a 50% discount as has been posited - that would be seriously below wholesale.[/quote2311776f6f]

[quote2311776f6f="PodTopia"]Yes, I severely DOUBT that Gratis is paying $150. At the lowest, I'm assuming they pay $200 per iPod (on the Minis). Things may be more expensive for everything else.[/quote2311776f6f]


Not to sound crass, but have either of you checked the wholesale prices on these things? Being somewhat familiar with wholesale pricing, 50% off retail for quantities of 1000+ is not uncommon...

Gratis buys the iPods in bulk, so with a 100% markup they would be paying $125 per iPod, but they could be paying less.

[quote8146ff2da6="wood"]Not to sound crass, but have either of you checked the wholesale prices on these things? Being somewhat familiar with wholesale pricing, 50% off retail for quantities of 1000+ is not uncommon...[/quote8146ff2da6]

Yes I have. I can tell you that when the 40GB ipod was $399, the wholesale cost to suppliers was more than $285, which is a bit more than 25% off, but much less than 50% off. I would presume the 20GB ipods were priced similarly.

Moreover, Gratis only recently began buying them in bulk and using a fulfillment service. They used to just order them piecemeal from ecost ~100 at a time.

I'm not denying they get a discount, I'm certain they do, but they're not getting 50% on something at hot as an Ipod.

Hell ask one of the people who runs a "4free" site how much they pay their supplier. That way we'll get a real answer.

hmm...

i can get 1000 20gig ipods at $180 a pop. I'm assuming they can do better then that...

Gratis has never, until recently bought 1000 ipods at a time. Who is your supplier, im or PM me if you want. EDU discounts don't count though ;)

Thanks for the input. I thought of another way Gratis lowers it's costs. Don't prospective referrals see a
drop-down menu of the other sites in the Gratis Network, and perhaps migrate from Ipod to, say Handbags?If you or I brought them there on an Ipod link, don't we in fact LOSE them as referal?