I will now explain how these sites can afford to give away expensive items such as, iPhones, iPods and Games Consoles for free.
The system free gift sites are based upon is called 'Affiliate Marketing'. This is how, 'Affiliate Marketing' works.
When you first sign-up to a free gift site, you must start to earn your gift by first completeing an offer, these are things like free trials with big, reputable companies. Every time someone like you or me visits a free gift site and completes an offer, the website's advertisers (affiliates) pay the website a sum of money because someone has completed an offer with them through that website. They pay this money because they are recieveing new potential customers, and in the long term, is good for the affiliates business.
After you complete an offer you must get a few 'Referrals', basicly you get friends or family to sign-up underneath you and complete a free offer aswell. By getting referrals we are increasing the number of people who complete offers with the affiliate, therefore increasing the amount of money the free gift site gets payed by their affiliates.
After a while all that money the website gets payed by their advertisers adds up to a large amount, and they use that money to buy you and me free and fantastic gifts! the website also makes a small amount of profit from this as not all the money is used to buy gifts, this is how these sites keep running.
So at the end of the day everybody is happy, You get your free gift of choice, the website makes a small profit and the advertisers get potential new customers. That is how free gift sites can afford to give away expensive items for nothing. It is like a 'You scratch my back, I scratch your back' system.
