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Don't Click Here For A Free iPod 594

fermion writes "Do you wonder what all those free iPods links are about? Do you wonder why apparently rational Slashdot users would use their .sig line to push an offer that seems little more than a thinly veiled pyramid scheme? Answers to these questions can be found in this NYT article (personal information, with no free iPod, is required). The plan itself seems simple. Rat out your friends to advertisers, and get a free gadget. The firm in question, Gratis, Inc, gets a bounty on each customer. The firm claims to have a revenue of $15 million in 2004. They claim to give away 500 iPods a week. If, as the article claims, each contact earns a bounty of around $50, we might presume that 1 in 12 contacts get a free iPod. This firm seem fairly upfront. Another firm mentioned in the article, Consumer Research Corporation, seems much less so. As always, read the fine print."
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Don't Click Here For A Free iPod

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  • by BWJones ( 18351 ) * on Sunday December 26, 2004 @09:57PM (#11188278) Homepage Journal
    I want you all to read this very carefully: Nothing is free , except true charity and this is decidedly not charity. Somebody (Gratis Inc.) is making money. Let me tell you a secret.....your identity and demographic information is valuable. Individually, it means very little, but when you sell out your friends to get in on this scheme, numbers start adding up and marketing firms and companies are paying big for this information, thus the 500 iPods/week adding up to $6.5 Million US/year and the company is decidedly making a tidy profit on top of this expenditure.

  • Christmas spirit (Score:5, Insightful)

    by saskboy ( 600063 ) on Sunday December 26, 2004 @10:00PM (#11188299) Homepage Journal
    It seems common sense [to me anyway] that to get a "free" iPod from some company or person that is giving one away, they stand to gain something in return. Since I don't know precisely what they are gaining, since it isn't money from me, and I have to assume they aren't doing it in the Christmas Spirit and giving for the sheer joy of it, then it only stands to reason that they are going to loot me in some way.

    Some people might not mind having their personal browsing or comsumer habits monitored at every turn or click, but I'd rather keep some anonymity. Especially from companies which are quite obviously associated with spamming, and pyramid scheming.
  • by Anonymous Coward on Sunday December 26, 2004 @10:02PM (#11188316)
    "Individually, it means very little, but when you sell out your friends to get in on this scheme..."

    "(http://prometheus.me...b/pubx_pubx_bwj.html)"

    Hmmm...

  • by FlipmodePlaya ( 719010 ) on Sunday December 26, 2004 @10:09PM (#11188371) Journal
    Whenever a /. article is posted about some nifty little DIY project that can save you from spending a few hundred dollars on a consumer model or whatever, the value of one's time always comes into question. How much money are you saving if the project takes X hours of your time?

    I think the deal is similar here. In the end you're getting a free portable music player (I believe they offer TVs and such, too, right?), but you have to sign up for free trials and things like that. You also have to shamelessly whore yourself out to your friends and family, to rope them into the scheme. Then there's the whole personal information thing the parent mentioned. After months of your own ridiculous marketing, is it really worth it?
  • by eeg3 ( 785382 ) on Sunday December 26, 2004 @10:16PM (#11188411) Homepage
    I don't think most people care their information is being sold away. It's really not that big of a deal.

    You can spam me all you please, if you'll give me a free iPod first.
  • by theurge14 ( 820596 ) on Sunday December 26, 2004 @10:34PM (#11188509)
    Anything else sounds shady to me.
  • by LGagnon ( 762015 ) on Sunday December 26, 2004 @10:37PM (#11188532)
    Nothing is free

    This said on a web site that constantly talks about open source software. Don't get me wrong, nothing tangible is free, but but its a whole different situation with intellectual property.
  • by YetAnotherName ( 168064 ) on Sunday December 26, 2004 @10:44PM (#11188565) Homepage
    Moderations are for the content of the posting, not the signatures. If you don't like what you see in signatures, turn signatures off in your Slashdot settings.
  • by Surazal ( 729 ) on Sunday December 26, 2004 @10:51PM (#11188599) Homepage Journal
    My mom would have issues with me sending her privacy information to a nameless soulless corporation.

    Hence, you can count me in as one of many people to decline this offer. Hope that helps.
  • by NanoGator ( 522640 ) on Sunday December 26, 2004 @11:03PM (#11188673) Homepage Journal
    "If enough people start using bugmenot, these bastards just might stop requiring us to give them our life history to access a bit of information."

    NYT doesn't require anything, just a unique email address, doesn't even have to be valid. Settle down.

  • by anagama ( 611277 ) <obamaisaneocon@nothingchanged.org> on Sunday December 26, 2004 @11:05PM (#11188687) Homepage

    • I don't think most people care their information is being sold away. It's really not that big of a deal.

    I care.

    That's why I trade supermarket "coupon" cards whenever I get a chance. It is better than avoiding the cards because trading has the potential to poison the data collection. If I simply refuse, they have a valid data set on those who use the cards (most people). But poisoned data can be dangerous if used as the basis for financial decisions. I'd love it if people made card trading a regular process.

    And don't give me any lip about "improving customer service by stocking the right items". Stores have been able to track their stock - what sells and what doesn't for ages. There really is no valid reason for the store to know exactly what I purchase individually. They can get the stock right by looking at things on a storewide level.

  • by elmegil ( 12001 ) on Sunday December 26, 2004 @11:10PM (#11188704) Homepage Journal
    Lots of people care. But guess what? Chances are good, your information is already being "mined" by the credit card companies anyway. Might as well get something for your trouble, if you're so inclined. Me, I didn't like the pyramid style of it, so I didn't. But I certainly thought about it a bit, and others I know had their iPods in time for christmas. Could have been a nice stocking stuffer had I opted in....
  • by new-black-hand ( 197043 ) <nik@techCOFFEEcrunch.com minus caffeine> on Sunday December 26, 2004 @11:13PM (#11188718) Homepage
    Why are these companies always portrayed in a negative light with the assumption that they are bad? I see nothing wrong with Gratis - they are filling a need for the companies that are willing to pay up to $60 per lead. Gratis meet all their obligations to both clients and referred customers for their clients. Why must everyone then assume that they are somehow evil? They have made a lot of money doing what they do, and a lot of people have received iPods for their efforts - the owners are even willing to have their full names published in the NYT which shows that they have nothing to hide.
  • by bwy ( 726112 ) on Sunday December 26, 2004 @11:17PM (#11188732)
    It's that it's a nasty scheme to harvest contacts for junk mail, telemarketing, etc.

    Well put. Whether it is "legit" or not is a secondary concern. I don't put much respect towards people who run around spending all their time spamming themselves and friends to get things for free.

    I mean, Christ-o-Mighty, We're talking 250-300 bucks here people. Get a job and earn it the old fashioned way. If true wealth were created merely by sending emails to people or by participating in some other pyramid scheme, everybody would be rich and nobody would work again (unfortunately, it would also mean that money grows on trees.) Also, it is an iPod... we're not talking about going to these extremes to feed a family. People are doing it to get a gadget that they can clearly live without.

    This is similar to the people who continually sign up for store credit cards to get discounts or "free" gifts. Apparently, they either don't understand or don't care how their credit score is derived. I know people who live their whole lives trying to get freebies. If they spent half that effort improving themselves, I'm sure they'd get a raise, better job, or something.
  • by tsalem ( 813623 ) on Sunday December 26, 2004 @11:25PM (#11188769)
    "If anyone here is in marketing or advertising... KILL yourself..." - from one of Bill Hicks' standup routines. (Thought the quote should be credited..)
  • by NoMoreNicksLeft ( 516230 ) <john.oylerNO@SPAMcomcast.net> on Monday December 27, 2004 @12:30AM (#11189019) Journal
    Actually, I don't dispute your explanation, just the conclusion. Those people who can't do math will continue, encouraging others to try again (hey, if he's still doing it, maybe it still works!). Those people will in turn encourage others... and somehow this becomes self-sustaining.

    Truly, if this logic held, we would have been done with pyramid schemes in the early 20th century.
  • by metamorphage ( 825606 ) on Monday December 27, 2004 @12:49AM (#11189085)
    This is a newspaper you're reading. You get a free copy of one of the country's best papers, and you're whining about entering an email address and some personal info. Stop bitching, you're not paying anything and the Times doesn't sell your soul to the devil.
  • by Romancer ( 19668 ) <romancer AT deathsdoor DOT com> on Monday December 27, 2004 @01:06AM (#11189187) Journal
    One Flaw,

    Physical Property=Time * Effort * Material.

    Intellectual Property=Time * Effort.
  • by adpowers ( 153922 ) on Monday December 27, 2004 @01:15AM (#11189259)
    Reminds me of one of the Ferengi rule of acquisition #59: Free advice is seldom cheap.

    In this case, I think we can say, "Free iPod is seldom cheap."

    Andrew
  • by Anonymous Coward on Monday December 27, 2004 @01:16AM (#11189264)
    So far, I've received:
    $170 check from a free green xbox offer (now closed)
    Xbox, from another free xbox offer. (Anyfreegift)
    ipod, from freeipods.com
    $700 check, from freelaptops4you.

    I'll give you $50 to fuck your sister.

  • by Anonymous Coward on Monday December 27, 2004 @01:34AM (#11189367)
    Um, thousands of people have given tens, hundreds, or thousands of hours of their time and expertise to bring you the "free" software.

    The parent is correct. Nothing is free. We are just lucky enough to have people willing to give their time and coding expertise away for (usually) no monetary compensation.

    Time is money. If these people had even worked a minimum wage job instead during those many hours, you are still talking millions of dollars.
  • by Anonymous Coward on Monday December 27, 2004 @02:39AM (#11189598)
    They collect the data simply for "data mining" purposes. Now that technology has made it possible to retain vast quantities of data (and not just summaries,) retailers are amassing HUGE databases of customer purchasing information. Walmart reportedly has 50 petabytes [wikipedia.org] of sales history saved.

    Most of data mining today answers the mundane questions like "how much more ice cream do people buy when it's hot?" What they're going for is more esoteric links and trends. Things like: if anagama buys lingerie, then buys an EPT test a month later, perhaps they can forecast the demand for EPT tests based on lingerie sales. Or maybe they'll put anagama on a list so that in 9 months they send you coupons for diapers and formula. (BTW, diapers and formula are the holy grail of retail: if they can get new moms to regularly shop at their store for those two items, they believe they have a customer for life. New moms typically harbor good feelings about the places they trust to help provide for their children.)

    Data mining is still a very immature process, despite current marketing hype. So far, it's being used experimentally. Walmart is certainly the king of data mining, but even their latest and greatest example was simply to see what people bought before and after hurricane Charley. (Turns out they sold 7 times the usual number of strawberry pop-tarts and beer, so they shipped trucks with extra poptarts and beer to the stores in the projected paths of the rest of the other hurricanes this season.) Again, nothing that couldn't have been done with raw statistics.

    Retailers view this data as "gold ore", even though it's a lot more like the Emperor's New Clothes. It's got to be valuable, somehow, it's just that we haven't figured out how to process it yet. The people working on the "customer database" teams are quick to shout "yes, it's valuable" because if they didn't they'd be out of a job. Same with the Sun and Oracle salesmen -- buy this valuable database processing engine and mine for gold (or else I get no fat bonus check, boo-hoo.)

    Yes, I am a deeply placed insider who works for a large retailer. I see this stuff all the time, and I know how worthless it's been so far. But it doesn't stop us from trying to mine more data. And it certainly doesn't stop us from collecting it. So go ahead and poison the database it if you want, but there are three reasons why I personally wouldn't bother: first, the number of poisoners is statistically insignificant (good luck changing that). Second, as I mentioned above, the databases are not yielding the gold you might imagine. Finally, I try not to participate in those card gimmicks -- I shop at stores that don't require them.

  • Re:i love my ipod (Score:3, Insightful)

    by gl4ss ( 559668 ) on Monday December 27, 2004 @02:41AM (#11189603) Homepage Journal
    what's the insightful thing in that?

    that's like saying that a pyramid scheme isn't a scam because they paid the first 10% who got in.
  • Re:Bitch elsewhere (Score:3, Insightful)

    by Russellkhan ( 570824 ) on Monday December 27, 2004 @04:22AM (#11189852)
    If you must work for it, it's not free. You're just working, for a wage of one ipod.

    Personally, I'd put in my hours elsewhere and buy one (if an ipod was something I wanted that much) before working for some advertising company as their shill.
  • by raehl ( 609729 ) <(moc.oohay) (ta) (113lhear)> on Monday December 27, 2004 @08:35AM (#11190487) Homepage
    In this case, the money is probably in the FIRST level or two of the scheme. I already don't have 5 people who would get 5 friends to sign up; and I'd be the first level if I signed up, so they'd get maybe $60-$180 out of me and my friends, and give out *NO* I-pods.

    It's also not a true pyramid scheme in the sense that you don't have to pay any money to get in. There's a fine line between a pyramid scheme and just paying people to do sales. My company has a bunch of people we pay JUST to sell stuff. And in fact, some of the people they sell stuff too then turn around and sell it to someone else. We call those people END USERS.

    In this case, the people who sign up for offers but don't get iPods are just the end users. The people who manage to get other people to sign up and get iPods are just a cheap sales force.
  • by dunkelfalke ( 91624 ) on Monday December 27, 2004 @09:53AM (#11190748)
    i don't get it.

    my spare time is free.
    i don't pay myself for my spare time, my employer doesn't pay me for my spare time. and i definitely don't want to spend the whole day earning money because in that case the following question arizes:

    what is all the money good for if i don't have any spare time to spend it?
  • by Arcturax ( 454188 ) on Monday December 27, 2004 @01:43PM (#11192486)
    Some people are even modding down folks with that in their .sig. I've metamodded those as fair as I personally think the .sig should not be a tool for spam. We deal with enough ads already, we certainly don't need to put up with them in every .sig.

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