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Don't Click Here For A Free iPod

fermion writes "Do you wonder what all those free iPods links are about? Do you wonder why apparently rational Slashdot users would use their .sig line to push an offer that seems little more than a thinly veiled pyramid scheme? Answers to these questions can be found in this NYT article (personal information, with no free iPod, is required). The plan itself seems simple. Rat out your friends to advertisers, and get a free gadget. The firm in question, Gratis, Inc, gets a bounty on each customer. The firm claims to have a revenue of $15 million in 2004. They claim to give away 500 iPods a week. If, as the article claims, each contact earns a bounty of around $50, we might presume that 1 in 12 contacts get a free iPod. This firm seem fairly upfront. Another firm mentioned in the article, Consumer Research Corporation, seems much less so. As always, read the fine print."

42 of 594 comments (clear)

  1. Read this carefully by BWJones · · Score: 5, Insightful

    I want you all to read this very carefully: Nothing is free , except true charity and this is decidedly not charity. Somebody (Gratis Inc.) is making money. Let me tell you a secret.....your identity and demographic information is valuable. Individually, it means very little, but when you sell out your friends to get in on this scheme, numbers start adding up and marketing firms and companies are paying big for this information, thus the 500 iPods/week adding up to $6.5 Million US/year and the company is decidedly making a tidy profit on top of this expenditure.

    --
    Visit Jonesblog and say hello.
    1. Re:Read this carefully by Anonymous Coward · · Score: 5, Funny

      Is the real article this badly formatted?

      You are an idiot. You can't even karma whore on Slashdot properly.

    2. Re:Read this carefully by FlipmodePlaya · · Score: 5, Insightful

      Whenever a /. article is posted about some nifty little DIY project that can save you from spending a few hundred dollars on a consumer model or whatever, the value of one's time always comes into question. How much money are you saving if the project takes X hours of your time?

      I think the deal is similar here. In the end you're getting a free portable music player (I believe they offer TVs and such, too, right?), but you have to sign up for free trials and things like that. You also have to shamelessly whore yourself out to your friends and family, to rope them into the scheme. Then there's the whole personal information thing the parent mentioned. After months of your own ridiculous marketing, is it really worth it?

    3. Re:Read this carefully by LGagnon · · Score: 5, Insightful

      Nothing is free

      This said on a web site that constantly talks about open source software. Don't get me wrong, nothing tangible is free, but but its a whole different situation with intellectual property.

    4. Re:Read this carefully by Zorilla · · Score: 4, Funny

      Yes, but would offering a cute screensaver for it change things?

      --

      It would be cool if it didn't suck.
    5. Re:Read this carefully by NoMoreNicksLeft · · Score: 5, Funny

      I've often thought about a website devoted to courtesy card havoc. Maybe everyone uploads their number, and each week you print off a new barcode for yours. We could even have a week where we all use the same number simultaneously...

      Think about it. We'd drive the poor sap crazy that tries to do the actual data mining. "Here he is buying $500 worth of groceries in upstate NY, and 6 minutes later he is buying peanut butter with foodstamps in florida!"

      Of course, how long before the cease and desist letter was mailed?

    6. Re:Read this carefully by k4_pacific · · Score: 5, Funny

      I have two of those cards. One is under the name "Carly Fiorina" and I use it for most purchases. The ither has my real name, and I only use it when I buy condoms or sour cream.

      --
      Unknown host pong.
    7. Re:Read this carefully by Anonymous Coward · · Score: 4, Insightful
      They collect the data simply for "data mining" purposes. Now that technology has made it possible to retain vast quantities of data (and not just summaries,) retailers are amassing HUGE databases of customer purchasing information. Walmart reportedly has 50 petabytes of sales history saved.

      Most of data mining today answers the mundane questions like "how much more ice cream do people buy when it's hot?" What they're going for is more esoteric links and trends. Things like: if anagama buys lingerie, then buys an EPT test a month later, perhaps they can forecast the demand for EPT tests based on lingerie sales. Or maybe they'll put anagama on a list so that in 9 months they send you coupons for diapers and formula. (BTW, diapers and formula are the holy grail of retail: if they can get new moms to regularly shop at their store for those two items, they believe they have a customer for life. New moms typically harbor good feelings about the places they trust to help provide for their children.)

      Data mining is still a very immature process, despite current marketing hype. So far, it's being used experimentally. Walmart is certainly the king of data mining, but even their latest and greatest example was simply to see what people bought before and after hurricane Charley. (Turns out they sold 7 times the usual number of strawberry pop-tarts and beer, so they shipped trucks with extra poptarts and beer to the stores in the projected paths of the rest of the other hurricanes this season.) Again, nothing that couldn't have been done with raw statistics.

      Retailers view this data as "gold ore", even though it's a lot more like the Emperor's New Clothes. It's got to be valuable, somehow, it's just that we haven't figured out how to process it yet. The people working on the "customer database" teams are quick to shout "yes, it's valuable" because if they didn't they'd be out of a job. Same with the Sun and Oracle salesmen -- buy this valuable database processing engine and mine for gold (or else I get no fat bonus check, boo-hoo.)

      Yes, I am a deeply placed insider who works for a large retailer. I see this stuff all the time, and I know how worthless it's been so far. But it doesn't stop us from trying to mine more data. And it certainly doesn't stop us from collecting it. So go ahead and poison the database it if you want, but there are three reasons why I personally wouldn't bother: first, the number of poisoners is statistically insignificant (good luck changing that). Second, as I mentioned above, the databases are not yielding the gold you might imagine. Finally, I try not to participate in those card gimmicks -- I shop at stores that don't require them.

  2. Christmas spirit by saskboy · · Score: 5, Insightful

    It seems common sense [to me anyway] that to get a "free" iPod from some company or person that is giving one away, they stand to gain something in return. Since I don't know precisely what they are gaining, since it isn't money from me, and I have to assume they aren't doing it in the Christmas Spirit and giving for the sheer joy of it, then it only stands to reason that they are going to loot me in some way.

    Some people might not mind having their personal browsing or comsumer habits monitored at every turn or click, but I'd rather keep some anonymity. Especially from companies which are quite obviously associated with spamming, and pyramid scheming.

    --
    Saskboy's blog is good. 9 out of 10 dentists agree.
  3. Where this thread is going: by AtillaTheKilla · · Score: 5, Funny

    I can easily see this thread degenerating in to hundreds of 'rational' slahdotters begging for refs. We'll see...

  4. while we're at it... by confusion · · Score: 5, Funny
    If you send this email to 10 of your friends, Bill Gates will send you $100. Er send you to Disney world, or refinance your mortgage or something.

    Jerry
    http://www.syslog.org/

    1. Re:while we're at it... by Saeger · · Score: 4, Funny

      The amount of money Bill Gates was giving away was actually $1000, not a piddly $100 cnote. You obviously never got paid and are just jealous of the millions who did.

      --
      Power to the Peaceful
    2. Re:while we're at it... by TheAJofOZ · · Score: 5, Informative

      Don't worry there's a hard limit to how long this can last. Lets say it takes 1 month to get the 5 referrals you seem to need (I'll leave it as an exercise for the reader to account for people taking longer, dropping out etc):
      Start: 1 person.
      1 Month: 5 new (6 total)
      2 Months: 25 new (31 total)
      3 Months: 125 new (156 total)
      4 Months: 625 new (781 total)
      5 Months: 3125 new (3906 total)
      6 Months: 15625 new (19531 total)
      7 Months: 78125 new (97656 total)
      8 Months: 390625 new (488281 total)
      9 Months: 1953125 new (2441406 total)
      10 Months: 9765625 new (12207031 total)
      11 Months: 48828125 new (61035156 total)
      12 Months: 244140625 new (305175781 total)
      13 Months: 1220703125 new (1525878906 total)
      14 Months: 6103515625 new (7629394531 total)

      Since there are only 6,446,131,400 people in the world the scheme cannot continue longer than 14 months. Sadly, those last few months will suck big time (and a few months after because of people who can't do basic math).

  5. Question by suso · · Score: 4, Funny

    Do you wonder what all those free iPods links are about?

    No, not really.

  6. old news by esmoothie · · Score: 5, Informative

    freeipods.com has been talked about before. There was even an article on wired about it a while back; http://www.wired.com/news/mac/0,2125,64614,00.html From everything I have read, it seems legit as far as people getting their ipods.

  7. Because it actually works... by eMartin · · Score: 4, Interesting

    I know several people who got free iPods by signing up for the offers involved and then cancelling. If they paid anything at all, it was certainly a lot less than the cost of the iPod.

    I guess if this company is making money, then not everyone bothers to get out of the offers they sign up for, but even they aren't getting ripped off.

    BTW, there have been a few sites that set up referal pools, where people basically just got together and refered each other with the people in the pool.

    1. Re:Because it actually works... by zoloto · · Score: 5, Interesting

      It does work. You fill out offers from three companies and wait. In my case, two visa's and AOL. Once the iPod came AOL was cancelled (under the no billing time) and the visa's were cancelled. I used a P.O. Box from a company that would accept packages from ups and fedex (MBE). After I had gotten two iPods, the MBE account, AOL, temp hotmail address and Visa cards were cancelled.

      No junk mail at my house. No spam. Free iPods.

      I'm not complaining.

    2. Re:Because it actually works... by Saeger · · Score: 5, Funny
      After I had gotten two iPods, the MBE account, AOL, temp hotmail address and Visa cards were cancelled.

      Well, thanks for scamming the scammers, scammer. Hopefully "Gratis, Inc." will go out of business as fast as AllAdvantage did a few years ago. If anyone remembers them. :)

      "If anyone here is in marketing or advertising... KILL yourself. No joke here, really, seriously, kill yourself, you are no rationalization for what you do, you are Satan's little helpers. Kill yourself. Kill yourself. Kill yourself, now. Now! Back to the show! ... Seriously, I know all the marketing people are gonna be like, "There's gonna be a joke coming up!" There's no fucking joke: suck a tailpipe, hang yourself, borrow a pistol from an NRA buddy, do something to rid the world of your evil fucking presence. OK, back to the show. ... You know what bugs me though, that everyone here who's in marketing is now thinking the same thing: "Oh, cool, Bill's going for that Anti-Marketing dollar. That's a huge market!" Quit it! Don't turn everything into a dollar sign, please! ..."Oohh, the plea for sanity dollar. Huge! Huge market! Look at our research."
      --
      Power to the Peaceful
    3. Re:Because it actually works... by lsmeg · · Score: 5, Informative
      It does work. You fill out offers from three companies and wait. In my case, two visa's and AOL. Once the iPod came AOL was cancelled (under the no billing time) and the visa's were cancelled. I used a P.O. Box from a company that would accept packages from ups and fedex (MBE). After I had gotten two iPods, the MBE account, AOL, temp hotmail address and Visa cards were cancelled.

      Word of caution: be careful about signing up for credit cards and cancelling them. The number of credit cards you own and have ever owned make up a part of your credit rating. Two credit cards you sign up for and cancel probably aren't going to do much... But if you go to get a mortgage and you've had 20 different cards, it could raise some eyebrows.

      --
      It's OK! I'm a limo driver!
  8. Re:It works... by user9918277462 · · Score: 5, Informative
    Pyramid schemes (going all the way back to Ponzi) were based around the fact that the first participants seemed to recieve whatever was promised (a quick profit, "free" goods, etc). This was the bait used to lure in the next generation of suckers.

    Know what "exponential growth" means? ;)

  9. It's not that it's not legit by the_mad_poster · · Score: 5, Informative

    It's that it's a nasty scheme to harvest contacts for junk mail, telemarketing, etc.

    The company I work for partners with a lot of these companies, offering one of the things you can sign up for as part of your work toward a free whatever. The companies we work with are legit, but the idiots that sign up for this shit don't read the agreement details and then they wind up getting deluged with legally clear spam, junk mail, and telemarketing.

    It's not really free, it's just that you don't pay for what you get with cash. You pay for it with your time. You have to sift through legit spam, junk mailers, hassle with telemarketers who can now legally call you even if you're on the DNC list.

    So, hey, if you sign up and didn't read the agreement, too bad. You're an idiot, and you deserve all the crap that you get deluged with. Hope all that extra advertising was worth the free iPod.

    --
    Alito: A vote for Alito is a punch in the eye to put that bitch back in her place!
    1. Re:It's not that it's not legit by bwy · · Score: 5, Insightful

      It's that it's a nasty scheme to harvest contacts for junk mail, telemarketing, etc.

      Well put. Whether it is "legit" or not is a secondary concern. I don't put much respect towards people who run around spending all their time spamming themselves and friends to get things for free.

      I mean, Christ-o-Mighty, We're talking 250-300 bucks here people. Get a job and earn it the old fashioned way. If true wealth were created merely by sending emails to people or by participating in some other pyramid scheme, everybody would be rich and nobody would work again (unfortunately, it would also mean that money grows on trees.) Also, it is an iPod... we're not talking about going to these extremes to feed a family. People are doing it to get a gadget that they can clearly live without.

      This is similar to the people who continually sign up for store credit cards to get discounts or "free" gifts. Apparently, they either don't understand or don't care how their credit score is derived. I know people who live their whole lives trying to get freebies. If they spent half that effort improving themselves, I'm sure they'd get a raise, better job, or something.

  10. Best way to get a free iPod... by MinutiaeMan · · Score: 4, Interesting

    ...is to get hired to work in one of Apple's retail stores! All permanent (i.e. not seasonal) employees get their very own iPod for "business" uses -- ostensibly, this is to help familiarize the Mac Specialists with the product, and also to give you a "reference" to look up data (stored as notes in the iPod). But you're completely free to store your own music on there and use it for your own purposes, too.

    (I suppose this might be too much "work" for some people, though, plus it doesn't have the fun of selling out your friends to spammers...)

  11. Your milage may vary, but... by Kufat · · Score: 5, Interesting

    Disclaimer: No links to sites will be given, so people don't think I'm spamming referrals. I don't plan to do any referral-based offers in the future anyway. Additionally, I'm not affiliated with any of these sites.

    So far, I've received:
    $170 check from a free green xbox offer (now closed)
    Xbox, from another free xbox offer. (Anyfreegift)
    ipod, from freeipods.com
    $700 check, from freelaptops4you.

    Only freeipods.com required referrals. The other grand worth of money/stuff didn't. I'm currently working on a deal for a laptop from another site.

    Are some of the sites scams? Yeah. But some of them are legit, or close enough for you to get your stuff.

  12. click through by zlel · · Score: 5, Informative
  13. I did read the fine print a while ago. by Spy+der+Mann · · Score: 4, Informative

    Among the things I read:

    1) The company isn't responsible if you're not ellegible for the free ipod list.

    2) The company doesn't guarantee that if you're ellegible, it will send you the free ipod.

    3) The company doesn't guarantee that when they send it, it will arrive.

    In other words, the company doesn't guarantee A THING.

    It's a scam. Just a SPAM frontend.

  14. Re:it's a scam by smashr · · Score: 4, Interesting

    I am currently listening to the iPod mini i got from the freeipods site. I signed up in late july for one of the AOL offers. The link spent a couple weeks in my AIM profile and I had the five referrals by early august. My order was confirmed on Aug 11 and I had it in my hand by mid October (due to the ipod mini shortages). I canceled the AOL for broadband in a 5min phone call. To date I have not recieved any phone or snail mail spam directly related, and it was a throwaway email address.

    Will it work for absolutely everyone?
    -No

    Will everyone who signs up get a free ipod?
    -Probably not

    Did I get a free ipod for less than an hours worth of work?
    -Yup

    Its not a scam. They make money AND give out "free" ipods.

  15. If anyone by staeiou · · Score: 5, Funny

    I swear, those people with the free iPod links will be FIRST up against the wall when the revolution comes.

    1. Re:If anyone by Hopelessness · · Score: 4, Funny

      Curiously enough, an edition of the NYT that fell through a time warp from 1000 years in the future defined 'those people' as a bunch of mindless jerks who were the first up against the wall when the revolution came.

  16. Re:I will remember to mod down those suckers by MXK · · Score: 5, Funny

    Say what you want, but Free XXX is always good. Unless you're... well, you know...

  17. Re:What's _really_ wrong with pyramid schemes? by Spy+der+Mann · · Score: 5, Informative

    While I don't know the validity of this particular offer just beware that the only losers are the guys on the bottom row. Just make sure that isn't you.

    And that ain't gonna happen. Sooner or later you will end up in the bottom row. Why?

    Because your success depends on the pyramid growing. And the pyramid CAN'T GROW FOREVER. At an geometric growth rate, it requires less than 30 generations to reach the world population. It's like a 30 bit number, but this time bits are base 10 or 12.

    This means that sooner or later, the pyramid will experience the so-called "bubble effect". Soon the ones at the bottom will stop generating revenue for you, and this means you'll stop generating revenue for the ones above you, and the pyramid collapses (meaning that the base will always disappear). Then the pyramid becomes VERY narrow and it's like it's started again.

    These pyramid schemes are always fraudulent because they promise you an impossible success. It's impossible because the base growth can't be maintained. It happened with Amway, Scientology, and major bible cults. In the end, the base always suffers the worst consequences. And if you were at the base, you'll be again.

    The fraud in this case is that you don't get the free ipod INSTANTLY. You need to prove your worth. And that means submitting LOTS of e-mails to spammers. And those aren't even IN the pyramid. They're above it.

    And don't tell me that the ad isn't deceptive. Hiding the nasty details in fine print, ON PURPOSE, is one of the greatest frauds in marketing.

    In general, the pyramid scheme is evil, because your earnings depend on how many people you abuse or cause to be abused .

  18. Re:I knew it. by value_added · · Score: 4, Informative

    "Why do people bother asking me why I have this in my sig?"

    Not to worry. I won't. Ever.

    Slashdot -> Preferences -> Comments -> Disable Sigs

    Now if I could only get rid of the excessive whitespace from the HTML-Formatted-But-Don't-Preview crowd, I won't have anything to complain about.

  19. Calculator for the value of your demographics info by rufusdufus · · Score: 4, Interesting

    Here is a site I found that has a calculator that suggest how much the bits of information about you are "worth".
    They suggest you "refer" agencies which collect information about you to this site so you are properly compensated.

  20. Wrong site? by System.out.println() · · Score: 5, Funny

    Do you wonder why apparently rational Slashdot users ....

    What slashdot have you been reading, exactly?

  21. And I'll metamoderate that as UNFAIR by YetAnotherName · · Score: 4, Insightful

    Moderations are for the content of the posting, not the signatures. If you don't like what you see in signatures, turn signatures off in your Slashdot settings.

  22. Re:I will remember to mod down those suckers by kesuki · · Score: 5, Funny

    Just for you I have a new sig!

  23. Re:Read with no registration by NanoGator · · Score: 4, Insightful

    "If enough people start using bugmenot, these bastards just might stop requiring us to give them our life history to access a bit of information."

    NYT doesn't require anything, just a unique email address, doesn't even have to be valid. Settle down.

    --
    "Derp de derp."
  24. RE: Time is money by King_TJ · · Score: 4, Informative

    Yep! When I first heard about the Gratis, Inc. offer to send a free iPod, I figured "Hey, I'll at least give it a try and see exactly what they're really asking me to do."

    I got through the majority of the thing before I realized it was going to be a huge waste of my time to proceed further. At the beginning, they don't really make it clear that you need to get at least 5 referrals to *sign up for the offers they're emailed* (and I believe, keep them for at least 30 days, too). They make you think that YOU simply have to do so with one (of many) offers you click through, and then give them 5 valid email addresses of friends.

    From my browsing through all the "trial offers", I began to realize that almost all are a royal pain in the butt to get cancelled after you sign up. I might be willing to go through the hassle myself, but I sure don't want to make 5 of my friends do so (if I could even get 5 of them to sign up for these offers in the first place!).

    I think one of the "simplest" ones to cancel was the offer to sign up with AOL, and as most of us probably already know - that's not usually the easiest thing in the world to cancel. (At the very least, you're gonna be waiting on hold for 20 or 30 minutes until you talk to some cust. service clown who keeps trying to give you more "free hours" rather than just cancel you.)

    Worse yet, so many other people already know about these deals, you end up emailing friends who are already trying to get the free iPod themselves.

  25. Something is fishy about all the happy customers . by Anonymous Coward · · Score: 5, Interesting
    There seem to be lot of suspiciously satisfied customers just jumping out of the woodwork about how happy they are they got their iPod. Funny, how I didn't see any postings from unhappy folks.

    Back in the day, before I went on to better, more mature things, I ran some porn sites. To get traffic, I sent about 100 spams every day by hand to usenet groups using AOL. The spams said they were giving a pirated login/password to a porn site link that was included.

    Of course, the web-form that opened was bogus, people could have typed in anything and gotten to the porn. But, thinking it was a stolen password, people jumped on it. I was making 3000 or so a month at the peak, all from the same 100 or so daily usenet spams. For some reason, (maybe guilt?) people who used the "free" password were much much more likely to click on the legit banners in my site.

    Eventuanlly, after the the banner affiliate programs got complaints from the usenet police (a singularly dedicated band of activists that have way too much time on their hands) about me, I stopped getting paid. Sluggish AOL even noticed their complaints, and my accounts kept getting turned off. By then I was making much more money at a real job, but the experience a very valuable look at the dark side of net and human psychology.

    It would be really interesting to look at how many of these slashdotters posting about how they got a "free iPod" somehow all set-up their accounts in the last couple of hours or so ... Also, those folks with sigs linking to the iPod offer will also have realized the potential this story offers.

  26. I'll stick with my... by MadAnthony02 · · Score: 4, Funny

    FreeDryerLint.info

    I created this site to put in my sig on various sites after getting annoyed by all the freeipod referal links)

  27. Re: Time is money by kinzillah · · Score: 4, Funny

    yes, but the hard part is creating the 5 street addresses, birth certificates and credit cards.

    --
    Douglas P. Price
  28. Because most people WON'T get an iPod by Peter+Cooper · · Score: 5, Informative

    Let's do the math. I'm not going to double check the figures, but I believe you refer 5 people, and once they all sign up, you get a free iPod. Rinse and repeat.

    Okay, so one person hooks up five people, they all sign up (making the company $50 * 6 = $300) and a $249 iPod is sent out to the first guy. Profit so far is $51.

    Each of those five hooks up five people for a total of 25 new people, so 25 * 50 = 1250. Five iPods = 1245, not much profit this time.. so this shows that at $50 there's no real profit for the company at each generation, until...

    25 * 5 * 5 * 5 * 5 * 5 * 5 * 5 * 5 * 5 * 5 = 2.5 billion.

    At this point you've exhausted everyone on the Internet, as you can't sign up more than once. So where's the money?

    As in ANY pyramid scheme, the money is in the last generation of the scheme! Free iPods will reach a point where they have several million on their books, and those several million can't find anyone to sign up! So.. several million * 50 = $A LOT OF PROFIT. And those guys won't get an iPod. Cha-ching.