Is There Any Truth Behind The Free IPhone Offers?

Free iPhones for you and your family? Sounds too good to be true doesn't it? The latest craze sweeping the internet is affiliate marketing, and it's building up quite a head of steam. There are of course sceptics, but those who have been getting involved seem to be happy enough, and the affiliate sites themselves seem to be growing in number. They promise iPods, iPhones, digital cameras and PS3s to 'members' who sign up for a trial promotion, and get others to do the same. Are these sites for real, are they a scam and how can they afford to give stuff away for nothing? Read on and I'll explain.

Affiliate Marketing - how it works

Affiliate marketing is a simple way to improve traffic and sales to a site. It is cheap and effective for advertisers and it almost always delivers the goods for a good return on investment. The most simple form of affiliate marketing is a google adword (you know those little links to the right of your google search page?). Links like these pay commission to the hoster of the link when they deliver someone to the site or get a sale out of them. For a click you might get a small amount, for a site where you get a number of people to sign up and take out a trial offer, the commission is considerably higher.

How do they afford giving away gifts such as iPhones iPods and Playstation 3's?

Because of the way that sites like kudosnetwork and freebiejeebies (see below) are structured. The reason they can give you so much more is that most everyone who signs up wants to get an iPhone for themselves, and so it's not just 18 referrals that you get, it's the 18 referrals that each of the 18 people that you referred go out and get. That's 324, and if all of those people want an iPhone, and get one, that's 5832 customers all for the cost of 19 iPhones paid out, and so on it goes. As you can see, in a very short space of time, the numbers of people, and hence the income grows exponentially, and they can afford to honour their promise.

Advertising is not cheap, and when the consumer is paid instead of the advertising company, it adds up to quite a lot of nice free 'stuff'. Of course they say 'free', but there is time involved although little or not money leaves the hands of the savvy. Hence the appeals to youngsters (who tend to have lots of the former and rather less of the latter).

How do the site owners make money?

Considerable amounts of money, of course. He needs you, however, to make the wheels turn - the reason he comes up with salivating prizes to get you off your bum selling on his behalf. You are charged with the job of working out which of your friends would be interested in such a scheme, and more importantly which of your friends wouldn't, and you keep pushing to reach your goal like a salesman after his bonus (iPhone). Meanwhile Mr. Site Owner sits there taking a commission for every sale her gets, and passes on a residual to you in the form of your gift. His marketing is clever, and as you can see, he is doing very well out of it.

But if everyone completed their referrals, wouldn't the site lose money?

In theory, if everyone achieved their referrals targets, got 18, or however many, people to sign up and claimed their free iPhones, the site might make a loss. But in practice, this never happens. Some sign up themselves then forget about it, some sign up a few people and then lose interest, These people have signed up and received nothing in return. There are many people who fall into this category. It all comes out in the wash. If it didn't, the number of referrals required per 'gift' would rise until the site was making money. The sites always make money. That's good news because it means you get paid too.

And what about the advertisers? If everyone cancelled their free trials, would they not lose out?

It is possible that if everyone suddenly did complete all their referrals, that the site might temporarily be out of pocket, but they would raise the amount of referrals required to ensure that they are always making a profit. As you come at the bottom of the chain, you are the last to get paid, so to speak, so know that the sites always have cash, and that's how they honour their contract with you, and give you your iPhone. Also remember, it pays for them to keep their reputation sweet amongst their agents (you guys), as without you and your clever efforts, they are nothing. Can they really afford to go around making promises they can't keep? Not for long, and these sites are alive and well and have been for some time, so it appears they've got the balance right.

So, is affiliate marketing worth getting involved in?

Well, it's up to you. If your time is worth big dollars, I would say, no. If however you have a bit time to spare and like to explore clever and challenging ways to generate referrals, then why not give it a go. You really haven't got much to lose, have you?

Examples of two UK based affiliate marketing sites for you to check out are: kudos network and freebiejeebies. Click on the links below to visit the sites. And Good Luck!

go to kudosnetwork AND freebiejeebies for additional information about how to start claiming your free iPhone. Also go to thebestthings.co.uk for background information and to make your affiliate marketing additional profitable.