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Free Gift Cards: Are They A Scam?

By: Gabe

Are Free Gift Cards Really Free?.

Technically yes but there are strings attached. The gift cards are a reward provided by promoters to inspire you to buy into their program. This is where the "Program Participation Required" clauses are important.

"Program Requirements"
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Usually the programs have three levels. The 1st level is usually trivial. The second level will require a purchase of something larger. The 3rd level will typically require the purchase of one or more items that are significantly more expensive than the reward.

First Level

In the 1st level the promotion will require you try out one or more free trials from Sony, BMG Music, Columbia House, etc. Alternatively the program will ask you to join something like the University of Phoenix. Typically you can pass the first level without a purchase but not always. When a purchase is required at the 1st level it is minor compared to the ultimate reward.

Second Level

The second level typically requires a credit card but the purchase is typically small by comparison to the reward offered. If you are presented with a $1000 Wal-mart gift card the second level is probably on the order of $100. So how do these promotions make profit?

Third Level

My experience is that the third level requires a large purchase usually much more expensive than the offered gift card. A few years back I investigated a free laptop promotion where I quickly likely the items on the first and 2nd level but then the third level required that I purchase a timeshare. Obviously the reward is really only worth it if I am already interested in a timeshare.

How Do These Promoters Make Money?

If you are anything like me the 1st question you have is how do these offers make profit? It is a crucial question to answer since an internet promotion that is too good to be true is probably illegal. And since not many would buy a timeshare to get a laptop, where does the money get generated?

Are they illegal?

I doubt it. I've read a lot of internet pages over the years where customers have vouched for one offer or another. These people had gotten their reward quickly and were happy. There was some words of wisdom though:

--Finish the offer requirements soon so you don't run out of time.
--Explore multiple promotions to find the best deal.

Email & SPAM

We all hate spam. Most of the offers available will ask for an email address to get started (sometimes just a zip code). I was curious if they sent spam so I recently gave a couple of the offers my email address. All I can say is that I use G mail and I haven't received any spam in my inbox. So either G mail is doing a great job of killing it or they are not spamming me. If you are interested in exploring these promotions get a G mail account and give them that address.

Sponsors

This is pure conjecture but I suspect sponsorship is how the promoters make their money. The sponsors that are part of program requirements most likely pay to be part of the program. Then as you or I review the offers and click on a few at the lower levels the promoters most likely get a kick back for each form you complete. That way if you exit before actually purchasing anything the offer still get paid.

Why Would I Join?

Believe it or not some find these offers to be a challenge. I did for a while. I was always trying to find just the right deal where they offered me a reward I desired coupled with purchases I also wanted at the right price given the reward. It's a form of shopping for the best deal like people who go from store to store to save 50 cents. It's the challenge.

When you find the perfect deal grab it fast. The offer will probably end up with more traffic than it can handle and pull the offer.

Article Source: http://bytepowered.org/articles

HubPages Article on Gift Cards: hubpages.com/hub/Program-Requirements--Gift-Cards

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