Posts Tagged ‘free shit’

The Economics of Lockerz

July 4, 2010

Like many others, I am excited about Lockerz, and I am sure you are too. For those that don’t know, Lockerz is a site where you earn PTZ (points) by answering questions and surveys, watching videos, and even just logging in. PTZ can be redeemed for great prizes. It took me almost no time to amass enough for an iPod Touch 8GB.

The PTZ Place with everything out of stock

The PTZ Place with everything out of stock

However, here’s the catch: everything appears to be out-of-stock. Lockerz restock once a month, and everything goes almost immediately. Recently, they have started calling these restocks “Redemptions”, as they are the only chance you will have to redeem PTZ, and they are pretty short lived.

http://lockerz-scam.com/ insists Lockerz is a scam. Often cited as a reason is the lack of a “24/7 PTZ Place”, where you can redeem PTZ 24/7. Zgore thinks that this is a necessary feature of Lockerz. However, I think it will never happen, and here’s why:

For this business model to work, the prices of prizes in PTZ must be proportionate to their real price. For example, an iPod Touch 8GB costs 400 PTZ at the moment. However, Apple are selling it for $199. If Lockerz were to allow anyone to buy an iPod Touch 8GB at any time, they would obviously need to make $199 for every 400 PTZ, and still turn a profit. It is very unlikely that they do.

Instead, consider this business model, which I believe is what Lockerz are currently doing: Lockerz let everyone earn PTZ by filling out surveys and watching videos with advertising. They earn money from this. When they amass enough money for a redemption (say, for 1000 people to get a prize), they order the prizes for the redemption, and distribute them (this happens roughly once monthly). Not everyone who has enough PTZ for a prize will get their prize, but many will, and Lockerz make a nice sum of money.

The sustainability of this business model is arguable, but in my opinion, it scales well. If more people become interested in Lockerz, and start earning PTZ, generating revenue for Lockerz, Lockerz will have more money to order prizes for the redemption, and they can order more of them. However, there will still only be a small percentage of people getting their prize.

In conclusion, I disagree with Zgore in that Lockerz is a scam. While it may not be as easy to earn a prize as it is made out to be, it is still quite possible, and the idea is excellent. If you would like a Lockerz invitation, please leave a comment below.

Off-topic: this is my first blog post in a while. I’ll be posting more soon.

Free iPods, iPhones, and iPads

March 24, 2010

Today I found a too-good-to-be-true-but-still-true website: iPodMeister. They allow you to exchange old CDs for iP(?:od|hone|ad)s!

They are a legit site, and were mentioned in the NY times.