September 14th, 2006, 12:17 PM
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#6
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Guest
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Re: FREE 30BG IPOD conga
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Originally Posted by Philadelphia Freedom
Okay, if they are legit how do they make any money? I did not do a deep dive here but I must be missing something...
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They get paid by the companies that provide the offers.
WIRED did a lot of research on them.
http://www.wired.com/news/mac/0,2125,64614,00.html
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Canoso also declined to specify the advertisers' bounties, but said they can range between $25 and $90, depending on the program and the kind of customer it attracts. "The money we give these guys (Gratis Internet) is enough to fulfill the promise that the customers come in for," Canoso said.
Canoso said while $90 seems like a lot, it is peanuts compared to the millions spent on TV and magazine ads, which don't guarantee new customers.
"Companies like Columbia House (and) credit card companies, they're happy to pay for customers," Canoso said. "They're happy to send out iPods because they're getting customers in return. Capture is expensive, and they're paying after they've acquired the customer."
And while a lot of customers cancel after the free trial, enough don't to make it worthwhile, Canoso said.
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