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Gratis Internet Climbs to #18 in Inc. Magazine's Prestigious Inc. 500 Ranking



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 -- 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."