Let me tell you how all of this works!

First of all I know you are probably very sceptical about all of this but I will try to explain why this works and why it makes good business sense for the companies involved to use this type of advertising to lure new customers.

I will explain the 4 steps involved in getting your free gift in simple terms so that you can understand where the money is made to pay for your gift.

Step 1 - Sign up to the freebie site

The first step is to sign up to the freebie site. This is the site that will send you your free gift when you have completed the requirements.
You will be asked to provide an email address and a postal address. The email address is simply so the company can sort out any issues that may arise without having to send snail mail to your house. It also becomes your login.
The postal address is where they will send your gift so please be sure to provide a real address or you will not receive your free gift.
All the companies advertised here comply fully with the Data Protection Act 1998 and will not sell or reveal your details to anybody without your prior consent

Step 2 - complete an offer

You will need to complete an offer to be eligible for your gift. There are many offers available and the secret to getting your gift completely free is to usse the free offers that are available.
In the UK the LoveFilm offer is compeletely free and in the USA/Canada the Credit Check Total offer is free. 

Step 3 - Refer your friends

You will now have signed up and will have your unique referral ID to give to your friends and family. If they sign up and complete an offer you will be given a referral.
Once you have enough referrals you can order your gift. One thing to note here is the Freebie sites' Terms and Conditions only allow for one account per postal address and per IP (computer) address. Failure to comply with these rules will mean your account will be placed on hold and you will not receive your gift.

step 4 - receive your gift

When you have enough referrals you can verify your account and as long as all your referrals have completed an offer successfully and not broken any conditions then your gift will be sent to you. You do not even have to pay postage it will be covered by the freebie company

So Where does the money come from?

When you complete an offer the advertiser whose offer you have completed will pay the freebie site a commission typically about £15-£30. This money is what is used to pay for your gift.

It is a win, win situation really. You get your gift at little or no cost to you. The Freebie site make a small profit on their commissions and the Advertisers get potential new customers.

The reason advertisers do this is because it is a lot cheaper than paying for TV or Radio advertising and will mean they get actual customers from it.