Monday 14 November 2011

How Do Referrals Websites Work?

A lot of people dismiss websites such as Freebie Jeebies as being too good to be true.  That's what I thought first, that there had to be a way they make money from this otherwise how would they give you free stuff.

From what I've gathered from researching this website is that Freebie Jeebies is a way of advertising.  There are several parties involved: Us (the people using the site), Freebie Jeebies, the company running the offer, and the company giving the free gift.  The company who runs the offer get lots more people trying out their site or product, and so by starting an offer they get lots of potential new customers. 

The company who gives the free gift gets potential new customers too; e.g if a person who wouldn't normally buy an iPod gets one for free, chances are they will want to buy more Apple products in the future.  It sounds like a lot to give away but for a big company like that the potential amount of money they would earn from new customers is worth giving away free things.

I'm assuming that Freebie Jeebies makes money from the companies providing offers but I don't know for sure.  I'd imagine that they get comission or something for getting people to try out the websites and products. 

Last of all, the person who uses the Freebie Jeebies website gets others to join Freebie Jeebies and to try out an offer.  It doesn't sound like much to do to get something for free but these new customers (whether they actually buy anything or not) are really valuble to a big company and it's a good marketing technique they are using.  It's easy enough for you to get people to join, but it gets people who normally wouldn't use one of those companies to try it out. 

If you have any questions or comments about this feel free to leave a comment on this post!

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