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When is a freebie offer really free?

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Free when you bait friends (aka referrals)
These sites require registrants to get other people to sign up with the Web site before they release the reward. These sites may also require both registrants and referred friends to complete product offers.

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The problem: Unless you have plenty of friends willing to pay money for you to get free merchandise, you may have to pay strangers to make timely purchases in your name. Then again, that would mean paying for your "free" product. At your own risk, you can buy and trade referrals with other freebie hunters on referral-swapping sites such as anything4free.com and referralswapper.com.

Check to make sure that by trading referrals you are not violating the terms and conditions of the freebie site. Many place restrictions on how referrals are achieved.

Example: Freeipods.com -- Users must sign up using a valid e-mail address, shipping address and age. They then must complete one of 10 offers. Then must also refer five friends who sign up and do the same within 90 days or no free iPod gets shipped.
Freehandbags.com -- After completing one product offer, users must refer 10 people who must also complete one offer, all within 90 days to get the free designer purse.

If you're going to answer an ad for free money or merchandise, it's best to play smart about which sites you respond to. Here are some tips to steer clear of the bad guys.

Before you sign up

  • Go with names you recognize. "The best way (to tell the scams from the legitimate sites) is to go with a site you've heard of before, says Naternicola. He says that if you haven't heard of the company, type the name of the Web site and the word "scam" into an Internet search and see what turns up in the search results. If it's a scam, you'll likely see message board entries or even news articles written about the company.
  • Get a reliability report on the company. Uncover any complaints that have been filed against the company by getting a reliability report from the Better Business Bureau. If one isn't available, ask the BBB to create a report for you.
  • Check for contact information. Beyond an e-mail address or contact form, look for a physical address and a telephone number that works. Try calling it to see if anyone answers. If there isn't one, ask yourself if you want to do business with a company that doesn't want you contacting it.
  • Read the terms and conditions and the privacy policy. Somewhere buried among boring details could be language that ultimately says the company reserves the right to spam you through telemarketing and e-mail solicitations. Or that they reserve the sell your personal information to third parties. Your information may be resold and repackaged in any number of ways, says Cox, so it's important to find out what they will do with your personal data.
 
 
Next: "I'd be skeptical if asked for personal information. ..."
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