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Free I-Pod Give away michael.hale 05-02-2007
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Posted by Mark Lloyd on May 3, 2007, 1:24 pm


On Wed, 02 May 2007 23:48:52 -0000, Tim Smith

>> Whats the catch ?
>
>The catch is that while what you have to do to get your free iPod
>*sounds* simple, it actually turns out to be very hard.
>
>Here's the deal: you have to sign up for an offer from one of the
>companies they are promoting, *and* you have to get 5 other people to
>sign up for an offer.

So I was pretty much correct when I said "pyramid scam".

> Then you get your iPod.
>
>The offers will be things like signing up for a one year subscription at
>audible.com for $15/month. Note that is worth nearly $200 to Audible,
>and so Audible is probably willing to pay $20-40 for that to the site
>giving away the free iPods.
>
>So to get your iPod, you have to complete an offer ($20-$40 profit for
>them), and get 5 other people to do the same thing. That turns out to
>be very hard. The typical person who tries this only ends up getting
>maybe one or two other people, if that many, to sign up. The result is
>that in most cases, they never have to give away the iPod, and they end
>up with the $20-$40 they got for your offer, and similarly for the one
>or two other people you bring in.
>
>Occasionally, someone does actually get 5 other people in. Then the
>company does ship out the iPod. So in that rare case, they don't make
>money--but even there they don't lose much. They'll get $120-$240 on
>the 6 completed offers, less whatever the iPod costs them. And like I
>said, that is the rare case--in most cases they don't have to cough up
>the iPod.
--
Mark Lloyd
http://notstupid.laughingsquid.com

"Unlike biological evolution. 'intelligent design' is
not a genuine scientific theory and, therefore, has
no place in the curriculum of our nation's public
school classes." -- Ted Kennedy

Posted by Tim Smith on May 3, 2007, 5:32 pm


>>Here's the deal: you have to sign up for an offer from one of the
>>companies they are promoting, *and* you have to get 5 other people to
>>sign up for an offer.
>
> So I was pretty much correct when I said "pyramid scam".

I'd say not. In a pyramid scam, basically everyone early gains, at the
expense of those who come in later. The later people lose because the
pyramid reaches its growth limits, so they can't recruit new people.

In the iPod giveaway, there isn't that kind of bias toward the early
participants. The early participants have just about as difficult a
time fullfilling the conditions as the later participants do.

It's basically just a commissioned sales system, where your commission
is an iPod, which you get if you make 5 sales.

I'd also say its not a scam, as the things they sell all seem to be
legitimate things at legitimate prices. They are simply things that are
expensive enough that they can afford to give away an iPod as a
commission on 5 sales. They are taking advantage of people
underestimating how hard it is to sell 5 expensive items.


Posted by Mark Lloyd on May 3, 2007, 6:32 pm


On Thu, 03 May 2007 21:32:14 -0000, Tim Smith

>>>Here's the deal: you have to sign up for an offer from one of the
>>>companies they are promoting, *and* you have to get 5 other people to
>>>sign up for an offer.
>>
>> So I was pretty much correct when I said "pyramid scam".
>
>I'd say not. In a pyramid scam, basically everyone early gains, at the
>expense of those who come in later. The later people lose because the
>pyramid reaches its growth limits, so they can't recruit new people.
>
>In the iPod giveaway, there isn't that kind of bias toward the early
>participants. The early participants have just about as difficult a
>time fullfilling the conditions as the later participants do.
>
>It's basically just a commissioned sales system, where your commission
>is an iPod, which you get if you make 5 sales.
>
>I'd also say its not a scam, as the things they sell all seem to be
>legitimate things at legitimate prices. They are simply things that are
>expensive enough that they can afford to give away an iPod as a
>commission on 5 sales. They are taking advantage of people
>underestimating how hard it is to sell 5 expensive items.

The "scam" part of it is in the pyramid.
--
Mark Lloyd
http://notstupid.laughingsquid.com

"Unlike biological evolution. 'intelligent design' is
not a genuine scientific theory and, therefore, has
no place in the curriculum of our nation's public
school classes." -- Ted Kennedy

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