Anyone browsing the internet is likely to run across an offer that promises a free $500 gift card or gaming system in return for completing a couple of offers. Most people ignore the offers or assume they're a scam (which some are). But there is actually an entire internet industry that revolves around people trying company products or services and being paid for it. This industry is called freebie trading, and it is getting larger every day.
Cash Flow of Freebie Trading
In trying out any method of making money, the first thing that needs to be understood is how it works and how the cash flows. If there isn't a logical system of benefits for all participants, the business method is not likely to last. In freebie trading, there are four parties to every trade.
The first is the company paying the freebie trading site. These companies are from almost every consumer industry: movie rentals, as-seen-on-TV offers, credit reports, free cell phone ring tones, etc. These companies pay the freebie trading site a certain amount of money for each referral they receive.
The second party is the freebie trading site. These sites, such as Git-R-Free and TRAINN, receive money from the companies and then pay people who send referrals to the site. They make money by keeping the difference between what the companies pay and what the they themselves pay the people sending referrals.
The third party is an individual who is in "method 2." This person has already completed the required offers for the site and is now sending referrals. They make money by keeping a small percentage of what the freebie trading site gives them. For example, if the freebie trading site is paying $50 for a referral, they might give $30 to the person they refer and keep the other $20.
The fourth and final party is the person who is in "method 1." This person is being referred and is going to complete offers on the freebie trading site in return for payment from the person in "method 2." Once they have completed the offers and received payment, they can then refer people to the site in return for payment from the freebie trading site. In essence, they have now completed "method 1" for that site and now are the person in "method 2."
How a Person Begins Freebie Trading
A person beginning freebie trading will probably have to join a site that is dedicated to connecting people who need referrals to those who need to complete offers. These sites vary, and some are better than others (I recommend Referral Swapper). In general, there are a few rules to follow.
- Do not pay more than $20 to join a freebie trading community.
- Insist on pay for each site you complete. Some communities try to make their members do so many sites for free before they can "move up." These are useless sites that are dedicated to only one thing: scamming people who are starting freebie trading. They are a variation of a pyramid scheme.
- Make sure the terms are clearly stated for each trade you agree to do. Most communities will have a system set up where both parties agree to the terms before anything else occurs. For example: Person A will pay Person B $40 to complete a site. Payment must be sent within 24 hours of Person B receiving credit.
After a trade is agreed to, the new person goes to the freebie trading site, and completes an offer (or offers) to receive credit. This is called "going green," as it is commonly referred to within the freebie trading community. Once the freebie trading site credits the new person, the person who referred them pays them for completing the site. The new person can now refer people to that site.
Legitimate Online Business Opportunity, But be Cautious
Freebie trading is a massive online business industry. There are thousands of individuals who make money doing freebie trading. But as with everything, be cautious. Many people start freebie trading, and spend a lot of money "going green" on various sites and seem to forget that they are supposed to be making money, not losing money. A general rule to follow is to make sure you are being paid enough for each site that it offsets the cost of the offers you are completing. Even in the beginning, when you have to complete a lot of offers, at least make sure you are breaking even. Freebie trading is a legitimate online business opportunity, but practice caution while learning the ropes of the business.
Join the Conversation