hostgator affiliate program: LOOPHOLE? it seems too easy

ok so to make this simple.. here is the hostgator affiliate pay chart

[TABLE="class: table"]
[TR]
[TD="align: right"]1-5 per month [/TD]
[TD] ????? [/TD]
[TD="align: left"] $50 /signup[/TD]
[/TR]
[TR]
[TD="align: right"] 6-10 per month [/TD]
[TD] ????? [/TD]
[TD="align: left"] $75 /signup[/TD]
[/TR]
[TR]
[TD="align: right"] 11-20 per month [/TD]
[TD] ????? [/TD]
[TD="align: left"] $100 /signup[/TD]
[/TR]
[TR]
[TD="align: right"]21+ per month [/TD]
[TD] ????? [/TD]
[TD="align: left"] $125 /signup

SEEMS way to good to be true. i mean.. my main coupon allows me to give one month for a PENNY. $0.01 So what is to stop me from PAYING people on here to sign up for what is basically FREE. And collection 50-125 a per sign up! WHO'S IN? YOU SIGN UP TONIGHT I PUT $ IN YOUR PAYPAL. THAT EASY! YOU CANT GET SCAMMED BECAUSE IF I DIDNT PAY YOU. YOU WOULD JUST CANCEL RIGHT AWAY. RIGHT? can someone explain why this wouldnt work? im sure im missing something.

[/TD]
[/TR]
[/TABLE]

I think they must sign-up for more then 2 months or something like that.

The accounts have to be active for like 60 to 90 days before you get credit for the sign-up, so they would have to pay more than the 0.01, but still less than you would get for the referral. The problem is that say you have 20 scammers sign-up it I'm sure it would be a huge red flag when they go to check the accounts before paying you and see that none of them have set-up a single site. So to make that look realistic you would need these people to actually host sites on there which obviously involve purchasing or transferring domains and actually building a site, which is more money and more time. Once someone is putting in this much effort to scam a few dollars they would probably be better of redirecting that time and energy into getting real referrals.

I might be wrong, that is just my thought on it.

you make a lot of sense. i knew it seemed wayyy to easy. lol