Xbox Red Ring Of Death – Freebie Sites Taking The Net By Storm
The very first freebie website saw the light approximately 4 years ago. It’s emergence gave opportunities to millions of users and businesses to flourish and spread out. The business continues to show tremendous growth as browsers can’t get enough of these sites and the people that run them are capitalizing big time.
The basis of this company model is really a easy one: “incentivized”, or “forced leads”. Let’s try and make those industry terms clear for the layman. It all begins with online advertisers of the CPA variety. Advertisers in all shapes and sizes provide a CPA or Cost Per Acquisition payout to affiliates that promote their offers. When a person signs up for one of these offers, the affiliate makes a commission.
Here is where the “incentivized” part comes in. The affiliate, in this case, a freebie website owner, shares this commission with the person that generated it. This sharing takes many forms including gifts ranging form the original free iPod to free Xbox 360s and just about anything in between. Making over $10,000 in easy money just by completing various affiliate offers on freebie sites, cashback rewards have become increasingly popular.
Beyond the opportunity to make free cash or earn a gift, these websites have something else working in their favor that make them spread like wild fire: viral marketing. Word of mouth for these literally spreads like a virus, from a single person to their social network and so on. The reason for this is that freebie websites offer rewards to users who refer new users.
On one side of the company design, users are required to complete one offer themselves and refer a set number of friends to do the same so they can gain their free gifts. On the other side, customers gain a fixed cash bonus for each person they refer to the website.
That’s all well and good from the user’s perspective, but what makes this model so attractive to the company owners that run these sites? Money is simple the answer. Here is how these earnings break down.
In this first example, the website owner is offering a Video Ipod for 8 referrals. This means the person has to sign up to the website, complete one offer and refer 8 of their friends or family to do the same. They will receive their gift if they finish this process. Here is the catch: 90% of customers can fill an offer and refer one, two, three friends. Then it gets hard and unless the person in question has a huge social network or information of how to get more referrals via forums or advertising, it pretty much stops there. In this case, the website owner has generated an average of $25 to 30 per completed offer and has not shipped a gift. That gives you an effortless amount of $25 to $120.
For this second example, the website uses the revenue share principle. 60% of the commission money will be obtained when the offer is completed. With thousands of dollars offers up for grabs, the website owner is pocketing 40% of hundreds of dollars per user.
Both models have a third stream of revenue which is more or less exploited according to the knowledge and savvy of the particular website owner. Freebie sites can generate thousands of signups per week. That means thousands of optin email addresses that can then be marketed to. Smart website owners will select the right offers to present to this ever growing list and be on their way to opening up another very viable source of income.
Here comes the dark side. Spammers have taken advantage of this principle and rather than utilizing lists wisely, have thrown each offer in the book at their customers until they turned away in disgust. Some of the largest operations have even sold customer lists with millions of names to known spammers in exchange for a quick buck.
As the industry forges ahead, the sites that promote integrity and originality in their offerings will reap long term rewards while seeing steady growth for years to come.
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