Here is a step by step guide on how referral sites work and why they give you FREE gifts.

STEP 1: The consumer (you) completes an offer from the freebie site.

STEP 2: The company must pay £25 every time somebody signs up through the freebie site.

STEP 3: Consumer wants a Xbox 360 (or what ever gift they choose Xbox 360 is an example), which costs £160.

STEP 4: Consumer needs to get 8 referrals (friends to sign up) in order to receive Xbox 360.

STEP 5: Company pays the Reward Site £200 as person has got 8 friends to sign up via their link.

STEP 6: Reward Site orders consumers Xbox 360, and has £40 left over.

STEP 7: Consumer's profit = FREE Xbox 360!

STEP 8: Reward Site's Profit = Around £40 or in some cases more.

STEP 9: Company's Profit = Interest in their website and money from people that stay.