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Who Benefits from Spam, Anyway?

Elbowgeek asks: "I've noticed that the vast majority of spam emails I receive are barely literate, to the point that in some cases one can hardly discern the product or service being advertised. Since most people are savvy/jaded enough to detect these entities that are not filtered automatically, just where does the profit motive from these messages come from? Is it simply the theory that if you send enough spam messages you're very likely to hit enough gullible recipients to make an acceptable amount of money? Does anyone have any insight on this dark underbelly of Internet advertising?"

13 of 109 comments (clear)

  1. To many stupid greedy people. by jellomizer · · Score: 4, Insightful

    Well you can assume that some of the Spam is static used to detrain spam filters. But for most cases Spammers make money in sending the Spam, Not selling the services that goes with it. So say they charge $10,000 for a Million emails. So unexpecting company or some poor smuck think he is going to get rich quick with this stuff will pay the spamming companies so much to give the link to their website and sell a product. But there is no promise that they will sell the product they only promise to deliver a million emails. So what normally happens the Smuck goes bankrupt and the Spammer gets the money. If the Spammer can get past the Spam filters then they can promise better visibility.
    There is basically an endless pot of Smuck who think they can get rich quick by selling sex toys, Investing in stock tips...

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    1. Re:To many stupid greedy people. by John+Hasler · · Score: 4, Insightful

      > Investing in stock tips...

      Many of the stock tip spams are attempts to pump a stock. I suspect that they often work.

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      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    2. Re:To many stupid greedy people. by Pharmboy · · Score: 3, Insightful

      Many of the stock tip spams are attempts to pump a stock.

      Although not my experiences are more anecdotal than imperical, I HAVE taken the time over the last year to track at least a couple dozen stocks that I have received spam for, up to a week after I received the spam. (finance.yahoo.com) About half the time, I have seen quick pops followed by quicker declines, indicating enough people purchased to drive the stock up 5%-10% (or a little more), followed by a decline within 24 hours pushing the same stock to the original price or a little lower.

      Maybe 30-40% of the time, the price didn't seem to change much (maybe not enough emails were sent) or the fluxuation was inline with the stock's trends, so it couldn't be determined if the spam did anything. The remaining 10%-20 it seems the stock simply slid in price (say, 3-10%) with no rise at all.

      So I can see how someone could pump up stocks and on average make money from spamming but it isn't always a sure thing. I have NOT heard of the SEC or any other agency arresting anyone for this, which seems to be clearly illegal, spam or not.

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  2. The short answer by jone_stone · · Score: 5, Insightful

    The short answer: yes. Send out a million emails and get a .1% response and it's more than worth it.

  3. Not everyone makes a profit... by Total_Wimp · · Score: 4, Insightful

    It's just like every other business out there. Some people don't know how to run them. Unfortunately, with spam, these idiots are able to make a major anoyance of themselves with their ill-concieved, badly run catastrophies.

    Trust me, the illiterate folks really don't make any money. But they're only part of your spam. The one where, you know, you can actually find some information on how to buy a product? They're doing ok.

    TW

  4. Don't you read Slashdot? by tommertron · · Score: 3, Insightful
    http://it.slashdot.org/it/06/08/09/1523207.shtml

    Apparently a lot of the 'gibberish' spam not trying to sell you anything is just there to try to untrain the spam filters so the next one that does try to sell you something might slip through. Or it negates the spam filters' effectiveness so much that people have to start looking in their spam filters for actual messages.

    Personally, I think there's a lot less of a greed factor right now than there is an 'us vs' them' factor. I really think it's just getting to be an elaborate game for these spammers now - all they're trying to do is thwart the filters, and they've forgotten all about trying to dupe people out their money.

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  5. There are two layers at work by MarkusQ · · Score: 3, Insightful

    There are two layers at work; the spammers and the "vendors" they spam for. The spammers are paid to spam, but they don't really care if the product sells or not. It's just like any advertising--magazines are paid to print your ads, but if they ads don't work, it's not their problem.

    If you extrapolate normal advertising out by a few orders of magnitude (dumber, cheaper, wider distribution, etc.) you get spam. If you don't extrapolate out far enough (and find yourself in direct mail or telemarketing), no worries. Just keep going in that general direction a while longer, and eventually you'll come to spam.

    --MarkusQ

    1. Re:There are two layers at work by WedgeTalon · · Score: 2, Insightful

      That's right, to a point. If, however, in your example, none of a product's ads produce sales, they likely won't be advertising in that magazine again. So it is somewhat of a concern to spammers that their clients actually end up getting some sales. Thus why we get the constant war of spammers trying to get past our protection schemes.

    2. Re:There are two layers at work by MstrFool · · Score: 3, Insightful

      Not so, and he didn't say that none of the adds sold anything, he somply said that the spammer doesn't care if they do or not. Just as there are large numbers of people that do reply to spam, there is also a large enough group of people willing to pay spammers to spam for them. You get $10,000 from one guy and it cost you next to nothing. How long would you be willing to wait for the next sucker to ask you to spam for them? So the first guy got nothing and went broak, a little sweet talking and waving of numbers and you have a new person willing to pay you. Do that 10 times in 1 year and that's a nice $100,000 in your pocket for doing less then a days worth of work all year. In time, people will stopp falling for it, but by then the nest generation of idiots is jumping to pony up the cash. Some times I hate having ethics... I could really use that money my self.

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  6. Re:My theory by pilkul · · Score: 4, Insightful

    Um.

    1. Spam has never been used to advertise respectable products.
    2. The motive for virus writing nowadays is profit, same as spam. Viruses let you put up adware and create zombie hordes for spam forwarding or DDoS blackmailing.
    3. In the past, the motive for virus writing was not to hurt other people, but simply a kind of power trip or experiment. For proof, look at how very small the proportion of viruses that intentionally delete data is. The psychopathic "hurt as many people as possible" mindset is extremely rare.

  7. Re:WTF? by dimfeld · · Score: 2, Insightful

    You're probably right about zero response from those who actively filter spam. But many people have spam filtered by their ISP or webmail service, and aren't even really aware of it. I think they are the main targets of spam filter evasion.

  8. Re:Which of course brings up the question . . . by xxtensen · · Score: 2, Insightful

    No spam: no spam blockers. No drugs: no war on drugs. No terrorism: no war on terrorism...

  9. Re:Spammers benefit by generic-man · · Score: 2, Insightful

    3. Collect list of stupid people's e-mail addresses, which you now know are good
    3 1/2. Sell list of e-mail addresses to other spammers
    4. Profit!

    Just a theory.

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