Free IPhone' Offers - All About Affiliate Marketing

If you've used the internet even a little, you will be aware of affiliate marketing - you know when you get an email persuading you go to a website and sign up for a free trial. Are these sites genuine. How can they give free iPhones away? It sounds too good to be true, doesn't it? Well, when you delve a little deeper you'll see a business plan which does make sense, and which seems to be working. Let me explain.

What is affiliate marketing and how does it work?

Affiliate marketing is a clever way to get people to sign up to what you are offering. The most common form is google ads which appear as hyperlinks next to the google search that you just performed. When these links are clicked, a commission is paid to the person hosting the link either when someone clicks on the link, or when they buy something from the site. Typically this is small, but in the case of many sites, they can be substantially higher.

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

Simple. if they persuade you to sign up to their site, and take out a promotional offer, and then persuade a number of people to do the same, then you are generating business for them. Sites like freebiejeebies and kudosnetwork (aimed at the UK, USA and Canada see below) structure their incentives this way. You sign up to the site, take out a promotional offer which is often free, and persuade a number of people to do the same. Once these have all been validated, you get your gift. But you only get credited when the people you have referred take out a promotion themselves. If you need 18 referrals and each of those 18 people need 18 referrals to get what they want, then the site has gained 324 customers. The next 18 from each of those 18 gives 5832 people, yet the site has only given away 19 iPhones. The numbers stack up very quickly, and as you can see, it makes perfect financial sense for them.

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).

What's in it for the middleman, the website owner?

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, would the site lose money?

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.

What about the advertisers?

Possibly, if we were living in an ideal world, but people are people, and there's a finely balanced pool out there who all behave differently. Do differently it's almost predicable. Many will take out free trials and cancel them, many more will forget, and some will actually enjoy and use the service they signed up for. The companies who advertise get an opportunity to get you interested in their product, and if they win, they get a customer.

So does affiliate marketing work?

Yes, absolutely, categorically, and for all parties involved. Is it free? Not completely, but if you are wily, it won't cost you a penny, just some time and some clever thinking. Find a list of people want a new iPhone themselves, and get them signed up ASAP.

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!

See www.thebestthings.co.uk to find out more about affiliate and viral marketing techniques, and how to start on the road to getting your free iPhone.