FreeiPods.com creator, whose key customers include Citibank, Blockbuster, Columbia House and BMG, had 2004 revenues of $20.5 million, representing three-year growth of 2,350 percent
WASHINGTON, Oct. 25 /PRNewswire/ — After another year of explosive growth, and with annual revenues in excess of $20.5 million, Washington D.C.-based online marketing firm Gratis Internet skyrocketed up 77 places to be named the eighteenth fastest growing company in the U.S. in Inc. Magazine’s prestigious 2005 Inc. 500 ranking. Last year, Gratis was ranked 95th in the Inc. 500.
Gratis operates a network of Web sites through its proprietary free payment method called FreePay, including the enormously successful freeiPods.com. Advertisers pay Gratis for referring new customers to them. Gratis then uses those revenues to give away high-end products to its loyal user base, totally free of charge.
"We founded this company five years ago, straight out of college, on a simple principle: you can make money by giving things away. By providing consumers with a unique and valuable incentive, you can drive quality new customers to large online advertisers, and the easier you make it for people to acquire those free goods, the more people will come to your sites and try your offers," Gratis co-founder Peter Martin said.
"We have refined the model over the years to create a ‘win-win-win’ scenario for our users, our advertisers and ourselves. Our continued growth and success proves our model’s ability to go mainstream, as we promote our new international brand, FreePay," Martin said.
The FreePay network of 12 Web sites hosts advertising offers from a variety of highly rated companies including Citibank, Blockbuster, Columbia House and BMG, among others. When a visitor to a Gratis site signs up for a trial offer from an advertiser, Gratis is paid by that advertiser for delivering a customer lead. Using those revenues, Gratis pays for the items it gives away, which include iPods (of which Gratis has given away more than 20,000 in the last 16 months), flat screen televisions and monitors, designer handbags, Xbox 360s, digital cameras and more.
Thanks to the popularity of FreePay powered Web sites advertisers are guaranteed a steady stream of quality new customers in exchange for sponsoring the process and paying for referrals. For advertisers, the Gratis model represents a refreshing contrast to traditional marketing methods, such as print, broadcast and billboard ads. In the past, advertisers had to spend large sums of money up front and "hope" it produced results. With Gratis, advertisers only pay for new customers delivered.
"We’re very proud to see Gratis Internet recognized again in Inc. Magazine’s ranking of the fastest growing companies in America. It’s an honor to be in the top 20 and we look forward to bringing even more consumer-friendly innovation and quality to our network of Web sites in the future," said Rob Jewell, co-founder, Gratis Internet. "If you’re looking to acquire high-end goods, completely free of charge, simply for trying online offers and referring friends who do the same, we encourage people to visit freepay.com to learn more."
To be eligible for the Inc. 500, companies have to be independent and privately held through their fiscal year 2004, have had at least $200,000 in net sales in the base year 2001, and $2 million in net sales for 2004. In addition, their 2004 sales had to exceed 2003 sales. Companies are ranked on averaged year-over-year sales growth. Inc. verifies all information using tax forms and audited financial statements from certified public accountants and by conducting interviews with company officials.
About Inc. Magazine
Inc., the only business magazine dedicated exclusively to owners and managers of fast-growing private companies, delivers real solutions for today’s innovative company builders. It provides hands-on tools and market-tested strategies for managing people, finances, sales, marketing and technology. Inc. is the premier publication that focuses on small to medium-size businesses, which are responsible for more than half the nation’s gross domestic product and 75% of its new jobs. And Inc. looks beyond work to address the entrepreneurial lifestyle. Inc., a Gruner + Jahr USA publication, inspires and informs, with cutting-edge coverage that reflects our readers’ energy, brashness, and imagination.
About Gratis Internet and FreePay
Gratis Internet was founded in 2000. In just over five years the company has grown to become a premier internet marketing firm, specializing in online pay-for-performance customer acquisition, in addition to becoming a recognized leader in the affiliate marketing arena. The company has several top producing media properties that are powered by FreePay and millions registered users. For more information, visit http://www.freepay.com and http://www.gratisinternet.com .
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