freeipods.com? Legal or Illegal?

[robotx21]

Is freeipods.com legal or illegal? What makes it illegal or legal? I've seen a lot of press on this and it hasn't been connected to a pyramid scheme. However...it looks like one to me...you need a certain amount of referals whom sign up for an offer under you before you get yours. That's like me saying "get 10 people to purchase my product at $40 a piece, and I'll send you a $250 ipod!". So again, illegal or legal? What makes freeipods.com different?

[jokach]

my opinion of it is that what they are doing should be illegal because it is a pyramid scheme, just nobody has challenged them on it yet (since its still really a new thing). It can be questionable because it doesn't follow the "classic" pyramid scheme, because the model they use will leave alot of dead-ends and isolated branches on the tree it builds.

Since the site first popped up back in the early part of the year, I have started to see more people complaining (on websites) about it rather than be happy with it. The opposite was true in the beginning of the year when it started. There are many people who have been successful in getting their ipod, but it takes a lot of work.

Always follow the motto, if its too good to be true, it probably is. :cool:

[Dreamer]

I think its a legal operation. Here is why:

1. money does not necessarily have to change hands.

As far as I remember reading there were offers you could complete that didnt require paying anything. So, the argument is that there isn't the system set up in all illegiial pyrmaid systems that there is a redistrbution of money from a large majority to a small minority (those at the top).

2. The money you might pay for an offer isn't paid for the product.

Take the classic chain letter for example. You have to pay $5 - $25 (or more for some greedy bastards) for being able to put your name on the list. So, the money you spend directly goes into the program to pay off others. matrix sites are an example of this.

You can fulfill the most expensive offer there is and that money will not go into any pool to pay for a product or to give money to someone else. So, there is that middle man involved.

3. They haven't been sued yet.

While this isn't really a good argument to test the legality, and an argument many matrix supporters lean on, in this example is good. Matrix sites hasn't gotten main stream media exposure. So, many people still don't know what it is. But, freeipod has been on tv, newspapers, whatever. Much more of the general population has probably heard of this system and still thinks a matrix site is just a fan site for the movies.

So, I think its legal. However, lets take the worst case scenario.

You sign up. You get 5 friends to sign up. You all complete your offers following the letter to the law. Now your expecting your gift. Well, they paid out before, but past results doesn't guarantee future results. You have an option to sue them.

So, lets say you take the time off work, go to the courthoue and take them to small claims court. You might need to fly out to where they are located, but Im not sure how that works. AFter paying the court fees, travel fees, time off work, you get to the courthouse. Maybe they'll settle.

Maybe they'll find some obscure rule you violeted or one of your friends violated and you get nothing. Kind of like with rebate forms. They really dont want to give you the money you rightfully deserve, so if there is a smudge or something insignificient they'll just throw that away and save their money.

You are not paying for the ipod in any shape. The sponsors of the offers you complete pay for them. Hopefully.

Is it illegial? Id guess no. Will I try it? No. I know SigX tried it and got his ipod moons ago, so I know it works. But, I just wont risk if. If the ipod is that good I'll buy one myself, but i'm not impressed with it to buy it.

[robotx21]

Ok, I understand how the list system is bad. But I'm having a hard time finding the difference of selling a product vs selling advertising offers. They do claim that SOME are free, but I've done that website before and at least one of your 5 people will have to pay something. So my question is, if there is a product for sale, you purchase it and get say 7 more refferals to buy it, you get the gift. Is this form legal?

[Dreamer]

Again with my misguided logic, I think its still legal. Its legal MLM.

1. You are not paying any money towards the gift.
2. You are doing business with one of the sponsors.
3. The sponsors pays the site for referring you.
4. The site sends your free ipod based on their advertising money received from the sponsors.

Now, just because I think its legal doesn't mean its good. It was good in the very beginning where alot of people were doing it. But, now...

[robotx21]

Alright, just for my clarification for myself, here is freeipods.com default email to use when refering new customers:
Hey-

Check out this great site that is giving away totally FREE iPods!

I've joined and I think you should as well.

It's a completely legitimate offer, and this company has already given away $4 million in FREE stuff!

All you have to do is join, complete an online offer, and refer friends to do the same. That's it!

Here is my referral link. To help me get my iPod, click this exact link to join, or copy and paste it into a browser:
http://www.freeiPods.com/blahblahblah

Now my question is this, would this be just the same as above:

Hey-

Check out this great site that is giving away totally FREE iPods!

I've joined and I think you should as well.

It's a completely legitimate offer, and this company has already given away $4 million in FREE stuff!

All you have to do is join, buy their product for $40 , and refer friends to do the same. That's it!

Here is my referral link. To help me get my iPod, click this exact link to join, or copy and paste it into a browser:
http://www.freeiPods.com/?r=blahblahblah

Is that the second one the same as the first one? Is the second version a legal or illegal MLM system? Why or why not?

[Justice4all]

I've done this same freeipods.com thing, and I have recieved one recently. I'm not proud of spamming my friends and relatives, but, there are services such as ancestry.com and whichever DVD club where you can sign up for a trial period for a lesser price, then cancel before the trial period ends. I myself did the ancestry.com trial, paid approx 14 bucks at the time and paid nothing for shipping.

So, anyway... I don't agree with alot of scams, but once in a while, there's a decent 'pitch' out there. I've been taken before, so I was quite reluctant to try this particular one. I een had a problem with the unit I recieved, in which I went straight to a Mac Store and they honored my 'reciept' as well as iPod support. so, I think it's a pretty good deal, plus, I haven't been spammed by this site or any of it's partners.

[robotx21]

Does anyone have a response to my question above? I'd really like to know! thanks

[jokach]

my opinion of the two emails is that they are definitely different because obviously the wording is different, (Completing an offer vs. buying a $40 product is different) ..... whether one is more legal than the other, its hard to say. We don't have any lawyers here, so its all a matter of interpretation.

I guess i'm not sure what answer you are looking for ......... :confused:

jokach

[newbychillguy]

I think that the main difference between the freeipods program and the classic pyramid scheme is that the classic pyramid scheme is based on the notion of a complete pyramid whereas the freeipods deal is based on a broken one. In the classic pyramid scheme, you (as well as the person who started the pyramid) is profitable if the pyramid beneath you is complete (ie not broken). However, in the freeipods deal if the entire pyramid is actually complete the site will go out of business. Hence as far as business model goes, their's is actually sustainable given the past evidence that all classical pyramids break (see posts above).

[robotx21]

so a referral system is NOT a pyramid scheme? I believe that this is what freeipods.com is.

[jokach]

A pyramid scheme needs referral, thats the basis of how the pyramid gets created. Its just the way that freeipods builds its pyramid, there are many dead-ends since the odds of everyone getting the required number of referrals is near impossible, and they count on that to make profit and provide ipods to the people who can get through the program.

Again, its a question of interpretation ...

[Bob Williams]

Free Ipod.com is not a pyramid scheme, simply because you do not pay another individual, funds.

"A fraudulent money-making scheme in which people are recruited to make payments to others above them in a hierarchy while expecting to receive payments from people recruited below them."

I rest my case....

[robotx21]

So if I set up a website where I sell a product and that customer refers so many people (say 10) to do the same, they will get a free gift, that is completely legal? If that's confusing I'll break it down.

1. Purchase a product
2. refer 10 people to do the same
3. get a free gift

To me that sounds like freeipods.com, just instead of a service, it's a product. It is also based on the notion of a broken pyramid, AND people can keep coming back, unlike freeipods.com, where you only get one ipod. To me, it seems this way it could never collapse.

[webmaster]

Its a free pyramid :D

[PTVroman]

So if I set up a website where I sell a product and that customer refers so many people (say 10) to do the same, they will get a free gift, that is completely legal? If that's confusing I'll break it down.

1. Purchase a product
2. refer 10 people to do the same
3. get a free gift

To me that sounds like freeipods.com, just instead of a service, it's a product. It is also based on the notion of a broken pyramid, AND people can keep coming back, unlike freeipods.com, where you only get one ipod. To me, it seems this way it could never collapse.
Some entities are using the "70% rule", meaning if the sale of products makes up less than 70% of the income, then it is a pyramid.

So, let's say you are selling cell phones at $50, when everyone else is selling them at $45, and your "free gift" is a $40 phone card. In this instance, you are probably fine. You may not find many people buying your phone because they can buy the same thing a little cheaper somewhere else, and your incentive isn't that great. Under anyone's definitions 90% or more of your money is coming from phone sales, so you are legal. (Some may say 100%; no one could argue that less than $45 per sale comes from the cell phone, since that's what everyone else is selling them at.)

Now, let's say you are selling your cell phone for $100 when everyone else is selling them for $10, and your "free gift" is $750. First of all, the only way you will ever get someone to buy this cell phone is either 1) they are incredably stupid or B. they're looking for the $750. You are no longer selling a cell phone, you are selling $750, and the only way to get that is recruiting people. No more than 10% of your money is coming from the phone. This makes it illegal.

It appears that what FreeIpods is doing is a little bit different. You as a consumer pay nothing. Ever. You give your name to FreeIpods. They require you to sign up at several sites for free. They are paid by the sites for referring you, and the moneys from that pay for your ipod. You as a consumer have not lost anything except a few minutes of your time and a bunch of spam coming to your mailbox.

Now, let's say that I start a website called "PTV4Free". I promise you a free ipod for signing up at 10 sites that I choose, some of which require payment. You as a consumer are now paying, and the people you recruit are now paying. I have a feeling this is now becoming illegal for the simple reason that one of those pay sites could be PayForNothing.com, which I might happen to own.

Clear as mud?

[DaveyBoySmith]

nice explanation

[MatrixWatch]

Good one. And I've been noticing that these sites collect money from large companies like AOL, Time Warner for referring all of those customers to their service. Then, these companies show their investors how many more members they are signing up as a way of telling them that their company is successful.

It is interesting to me that many of these "referral link" scams and "click the email spam links" schemes are earning kickbacks from Fortune 500 companies to stay afloat. Where is the media on that one?

[Bob Williams]

I'd like to put another perspective on these types of referral based sites.

Any time you refer another person to either a matrix site or a site like FreeiPods, you are basically bringing them new business.

I feel this is a pretty common practice with most businesses. Take for example my Mobile Phone Service provider. I got a letter through the post saying that for every new customer I bring to their business, I will get £50/$100 as a reward from introducing new business to them.

I feel this business concept is not too dis-similar from most other business, whereby with some matrix sites/free ipods, they reward you with a expensive item/ipod for introducing a certain amount of new business.

At the end of the day, these types of systems/business are designed to be incentive based, you bring them more customers, they reward you. Which as far as I can see is an age old practice and completely legal.

[robotx21]

Now, let's say you are selling your cell phone for $100 when everyone else is selling them for $10, and your "free gift" is $750. First of all, the only way you will ever get someone to buy this cell phone is either 1) they are incredably stupid or B. they're looking for the $750. You are no longer selling a cell phone, you are selling $750, and the only way to get that is recruiting people. No more than 10% of your money is coming from the phone. This makes it illegal.

It appears that what FreeIpods is doing is a little bit different. You as a consumer pay nothing. Ever. You give your name to FreeIpods. They require you to sign up at several sites for free. They are paid by the sites for referring you, and the moneys from that pay for your ipod. You as a consumer have not lost anything except a few minutes of your time and a bunch of spam coming to your mailbox.

Now, let's say that I start a website called "PTV4Free". I promise you a free ipod for signing up at 10 sites that I choose, some of which require payment. You as a consumer are now paying, and the people you recruit are now paying. I have a feeling this is now becoming illegal for the simple reason that one of those pay sites could be PayForNothing.com, which I might happen to own.




I see your point. But I have used freeipods.com, and not all the offers are free. Some require you to make a purchase on say a credit card you sign up for, or pay shipping and handling for a product. It is by no means totally free...consumers are still paying to get the free ipod. In your example, freeipods isn't selling the advertising, cause no one wants it. What they do want is the iPod. The incentive overpowers the actual advertising they are selling. So wouldn't this make freeipods illegal?

[pillsbury09]

i have an ipod and its from freeipods...i paid 7.95 to video professor.

thats all

just returned the stuff within the time..and reffered some ppl using ebay..its really easy..however its harder for the other websites...

this is a really good bet compared to matrixes.

However, its harder with other stuff thats not as popular like the specific monitors.

you should be able to refer someone to the gratis networtk and be able to use that refferal on any of there sites.

[jokach]

Its unfortunate that Gratis hasn't developed a way to make their "free" items work for everybody. You should feel fortunate that you were able to get your free ipod, because I know from what i've read (and some posts here), there have been alot of people who were disappointed (even after working hard for it) ... your suggestion about being able to combine credits from different "free" site offers would be a step in the right direction, but financially, it wouldn't be possible for Gratis to make any money like that .. :cool:

jokach

[tcb1969a]

Hmm, well I will weigh in on this topic.

My feeling is, is that nothing is free. There is always some sort of advertising ploy or gimmick that has free attached to it, to lure people into buying something they would not normally buy. So is that illegal? Well, not real sure. I suppose it depends on how well you can skirt around the law or not.

I know one person who actually got a free ipod and did not pay for it, but I am sure there are a lot of people that might have had to pay something to a sponsor or what not in order to get there free ipod.

It's just like here at my hotel. We have a "Free" continental breakfast for our Guests. Which this is just a way to get people to think they are getting something for free if they stay with us, when in actuallity, it is not free. It is included in the price of their room.

Anyways, just my 2 cents....

[Matrixfool]

my opinion of it is that what they are doing should be illegal because it is a pyramid scheme, just nobody has challenged them on it yet (since its still really a new thing). It can be questionable because it doesn't follow the "classic" pyramid scheme, because the model they use will leave alot of dead-ends and isolated branches on the tree it builds.

Since the site first popped up back in the early part of the year, I have started to see more people complaining (on websites) about it rather than be happy with it. The opposite was true in the beginning of the year when it started. There are many people who have been successful in getting their ipod, but it takes a lot of work.

Always follow the motto, if its too good to be true, it probably is. :cool:

It isn't a true pyramid scheme because you aren't paying anything to them. Alot of the guys on this forum need to take the hate out their mouths.

[Matrixfool]

Lets weigh it out


pay $300 for an iPod VS. doing a little work, maybe have some of your info sold, and get it for free.

Some people are willing to do that.

[Keanu]

More Like Have your information sold, get spammed till the cows come home and keep looking at the Ipods in the shop window.
Thats a more realistic look at things.
There are around 100-300 websites doing this free Ipod scam.

Reality Check:

1. Have all these companies that have sprung up all of a sudden got a free supply of Ipods off Apple, Dont think so!! :shake:

2. Does the sale of 5 individuals email addresses cover the cost of an Ipod, Dont think so!! :shake:

3. Do the affiliate companies who's product you sign up for give these websites enough revenue to cover the cost of each free Ipod and the profits of the site owners, Dont think so!! :shake:

3. Dont you find it strange that there are so many websites offering this offer all of a sudden (Ipod nano was one of the most popular items to buy this christmas) yet just because no cash is involed on a first level basis everyone cant see the scam.
I'm surprised they're not all offering Xbox 360's as well, would'nt you agree?. :confused:

And last but not least, If I built a website and called it Free-Ipod-Paradise.com would you trust me if I said "It's not a scam, you will get your Ipod, look, here are a selection of pictures of people who have already received them. lol :D lol

Its time to smell the coffee unless you want to get suckered for the rest of your lives, the older you get, the wiser you become (supposedly) so get with the program guys. :yes:

Although some people never learn and will constantly get suckered, the majority of us have got enough brains to know that once you have been burnt, don't play with fire :flame: :yes: