Clopper the idea would go as follows.
Most of the offers pay the affiliate $50+, but take only $7.99 or so off you, because a lot of people end up liking the service, etc.. etc..
Its like those affiliate programs who pay you $150 CPA, cost per action for someone signing up with a free trial or spending $10 on credit for live cams, like pussycash.com for instance, they pay $150 per signup and the person only pays like $15 or so, but they end up getting adicted.
So the company doesnt get $10 another bigger company like the offer owner themselves pay the affiliate even more, cause most stay with them, like the DVD thing, ive done that offer on something else, and i like it now but never knew about the company before, and ive got loads of dvds from them just cause its handy
Now say you do an offer on the freeiphone site the people giving the iphones get like say at the least $30 per person, thats $420, plus the people who give up half way, its all profit, most people cant get 14 referals so its a win win.
They can also further promote things later on which is more money.
So its a winner situation for both the person who lands the free iphone and the affiliate program.
And you can get unlocked iPhones now for well less.