It is called referral marketing, the simple aim is to get the advertisers more customers by the offers you complete. This improves their custom and is commission based so the freebie network can afford to buy your gift. Below is a more detailed explanation of how it works and how they can afford it.
The freebie networks work on a commission based model, basically they get paid by the advertiser for every offer completed through their site, this then means that that can afford to buy your free ipad.

What sites give away free iphone then?
There are many sites out there for all different types of products.
Kudos network – Launched in 2007 there are a very well respected network and is run by Lee who is very friendly, has some of the best support times around. They feature 7 referral based sites and 1 points based site, they are: Gadgets, Apple, Consoles, HDTVs, PS3s, Mobiles,Sports, Select, Gifts and Points.

Kudos Network – Run by Lee, a very friendly and highly efficient network they have recently risen to eXceem Supported Status and won the 2008 award for best unsupported network. They are a pleasure to be a customer of and offer a wide range of gifts from their 8 wonderful sites. They include:Consoles, Apple, PS3, HDTV, Gadgets, Gifts, Mobiles and Points.
Both sites have great customer service and I can highly recommend them both to anyone.

What do they sites get out of it?
The best way to explain it is to use an example gift to show you how the system works. Say you were trying for a Free iPod Shuffle from Apple FJ (FreebieJeebies) it would mean you need two referrals.

So you sign up to Apple FJ and complete one of the advertisers offers such as Coral or Lovefilm costing you around 5, FJ then get paid about 20 from the advertising company (Coral or Lovefilm). You also get two people to sign up under you and complete an offer meaning the website get another two lots of the commission so another 40. This means they can then buy your shuffle and keep an amount as profit for themselves.

Custom Orders
All our featured sites offer custom order, this is where your gift is not specified on the normal gifts. You specially request it and they can then give you an estimate for the number of greens (referrals) it will require. All the sites offer roughly the same for custom order values, each referral you get being around 20 worth of gifts (which they can claim VAT on) or around 17 worth of a bank transfer or vouchers. Once your quote has been finalised you carry on in the same way as another gift and it is shipped in the same way.

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