Companies give out free stuff for advertisment

At this site: http://pcs.freepay.com/?r=21802852 you can get free stuff simply by signing up for a free trial or regular offer. then you just have to show ten other people the site. IT IS NOT A PYRAMID SCAM. You can read about it in bbc news here: http://news.bbc.co.uk/1/hi/programmes/newsnight/3683524.stm Free ipods is just one of the things they give away.

  1. go to the first site

  2. Make an acount (free)

  3. sighn up for a risk free trial at stamps.com

  4. refer ten other people

My question is if more and more site keep doing this arn’t the companies that sell the products that are given away going to be hurt by this kind of advertisment. I know one of the responses to my coment would be “no both companies would benefit because the company giving the free items has to buy the objects in the first place” But the companies giving away the free gifts probably buy the gifts at a wholesale price. And after the companies making the products get a decreace in profit from selling more products wholesale than retail value, i think the forthcoming products made by the companies won’t be as good quality.