How is this Possible?
This is a form of online marketing called affiliate marketing. When people sign up and complete an offer, the company who's offer is completed pays the websites a fee for each referral that completes the offer, some of this is used to purchase your free gifts, and the rest is profit for the websites.
For each referral you get to complete an offer, the websites will pay a commission to the freebie networks. This varies from offer to offer, but is usually in the range of £30-£50.
So if you get 9 referrals then the network will get at least £270 so if you were to order an ipod touch, which costs £179, then they have plenty money to buy your gift and still make a profit.
With most large advertising campaigns costing millions, this is a more cost effective way for the companies to find new customers. A TV advertising, although the message reaches many people, there is no garuntee that many people will try the product. These days, people are becoming desensitised to TV adds, so they are becoming less effective, whereas with this form of marketing they may be paying you to try their product, but it works out more effectively as the consumer is forced to try the product.
