Have you ever been surfing the net and come across a website that claims to be giving away ridiculously expensive products? You probably dismissed it as a hoax, but this is a new industry unto itself and free devices like the new iPad are really being given away, so this article will explain the truth behind this process.

There are plenty of advertisers who will pay for someone to get a free iPad if they, in turn, provide them with a service or two first. Basically, the premise of this is that big companies with massive ad budgets, companies you’re familiar with, like NetFlix, that regularly advertise on TV, have started to advertise online, but not in the obvious way, like when you watch an advertisement or a banner while browsing a website. Their massive advertising budgets allow them to buy high-priced electronic devices like an iPad or iPhone and give them away for free to ordinary consumers like you or me in exchange for giving your company something in return, like trying your product or service for free.

For example, using the Netflix example, they may ask you to sign up for a one-month free trial of their service in the hope that you’ll enjoy it and get hooked so you start paying for their service. They give you a huge incentive to try Netflix by sending you free devices like an iPad, usually through a broker site. That’s an extreme example, though. More conservatively, typically with big-ticket items like a $500 iPad, you’d have to honor multiple offers like that from various companies. They as a business get more exposure by putting their product or service right in front of you and in exchange for this style of direct mail they pay for a piece of that iPad and when you make a series of offers like that it all adds up to you get a free iPad.

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