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FreePay (otherwise known as Gratis) is an online marketing company that claims to give out free products such as iPods, laptops, gaming consoles and many other electronics. So what’s the catch? You need to complete one of their sponsor’s offers and refer a certain number of friends to also sign up for the same offer. This number depends on how much the product you wish to receive is worth.

Now you’re all probably expecting me to tell you this is a scam. FreePay is a scam to a certain degree in that the company is trying to get its members to sign up on multiple contracts and then forget about them after the fact, thus trapping people into paying a weekly or monthly fee for something that they do not want. Let me explain. A couple of days ago, my friend received an iPod Nano just for signing up, completing a free ringtone offer (which he cancelled the subscription straight after receiving it so he wasn’t charged the full $24 per week), getting 8 friends to sign up under him using his referral code, and getting each of those friends to also complete the same offer.

At this point in time, you’re probably wondering how FreePay can give away products worth hundreds of dollars. Well, FreePay makes its money from people completing their offers, since some people never stop their subscriptions and thus end up paying the full $24 per week unknowingly (or more). The same thing occurs when people who have signed up with a FreePay offer never reach the total amount of referrals needed to claim their product. In both of these common cases, FreePay is not losing any money, but only making it, alongside their constant pay-per-click (PPC) advertising of other sites and products (which is one of the most basic ways of making money on a website).

Some examples of items claimed to be given away by FreePay include: iPods, iPod Nanos, PlayStation Portables (PSP), Xbox 360s, Nintendo Wii systems, Nintendo DS systems, PlayStation 3s, Digital Cameras, Laptops, Apple Products and Gifts. Of course, the higher the retail price of the item you want, the more referrals you’ll need to complete offers to get that item. It’s hard to get enough referrals to sign up under your referral link. However, if you do take part in the program, based on my friend’s experience, I have some suggestions you should take under consideration.

The ringtone offers are the easiest to complete. FreePay will ask for your mobile phone number and they will send you a code. Put the code into the website and when you receive the link to download the ringtone, reply with the “stop” code to end the subscription. If you do it correctly, you won’t be charged that much and even though you cancelled the subscription, you will still receive credit for your effort. It can take up to 15 days to receive credit, but my friend usually received his within the same hour. For the small amount of money you’ll end up spending, you can turn around, sell the item you received for hundreds of dollars (for example, an Xbox 360), and do it all over again.

Here’s another idea. If you’re feeling pretty wealthy, you don’t know anyone to give your referral code to, or you have nowhere to advertise your code, there’s an alternative to finding referrals. You can create a number of different email accounts (using different names, addresses, etc.) and use them to fill up your referrals. You’ll end up spending more money signing up for offers but in the end, selling the product can usually more than make up for the initial cost.

The main problem with FreePay is that it’s strictly an Australian site, so anyone outside of Australia unfortunately cannot participate. But for everyone else, I hope you’ll give my tactics a shot and hopefully they’ll allow you to be successful at getting the product you want for a cheap cost. Just keep in mind that after you complete an offer, you must have all of your referrals complete the same offer within 120 days of you signing up with the contract. Otherwise, you won’t get that much-desired gift.