> Where's the catch you ask?

"It seems like a scam and looks like a scam, one of the hottest accessories being given away for nothing. Where's the catch you ask? - well there isn't one if you're a savvy customer."

- Tom Carver, BBC Newsnight

BBC Newsnight Report

Unless you're extremely gullible the promise of getting a free iPod seems a little dubious, let alone a free HDTV. However the process is actually legitimate. It’s not a scam, it's not a pyramid selling scheme and nor did the items fall off the back of the proverbial truck. This is in fact a new form of advertising supported by the likes of LOVEFiLM and Easy.

So here’s how it works. Users sign up at a giveaway site which promises them a free item. All they have to do is complete a free offer from a reputable company like LOVEFiLM, Easy, Ladbrokes etc. And then refer some friends to do the same.

But what are the logistics? Users of the giveaway site are given the choice of around ten offers to complete. Most are free and easily cancelled. Every time a user completes an offer the giveaway site is paid a commission by the other company, this commission can be as much as £75 depending on the offer completed. Once a user and their friends have each completed an offer, the giveaway site has made enough money in commission to send the user a free item.

The giveaway sites are effectively marketing firms; they get paid by their advertisers for every user which signs-up with them. In exchange for a user signing up with an advertising firm and helping the giveaway site make money, the giveaway site sends their user a gift as a ‘thank you’

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