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Old 01-11-2006, 04:33 PM  
NinjaSteve
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Join Date: Dec 2003
Posts: 11,089
Here's the catch and how it's free:

Found the info here:
http://www.snopes.com/inboxer/nothing/free411.asp

How can Free-411 afford to offer free directory assistance service? It works sort of like commercial radio or television ? businesses pay to sponsor it in exchange for presenting their advertisements to customers. The funding of Free-411 is typically explained thusly:

The service is made possible by thousands of national and local businesses who sponsor this service with brief valuable audio advertisements that are played to callers who request businesses in their yellow pages category. This advertising model allows businesses to acquire new customers over the phone, cost effectively, with little or no risk. Meanwhile callers get free directory assistance, potentially saving each of them thousand of dollars per year.

The way it works in practice is that a caller who requests a business number is first presented with a short (about 12 seconds) audio advertisement for a sponsor who operates a competing business in that area; the caller is then given the option of being connected to either that competitor or the business he originally requested. If no sponsor operates a local competing business, then the caller hears no advertisement at all. (In the latter case, if the caller accepts the option to connect to the desired number, the business receiving the call hears a short message at the beginning advising them that the call was placed via Free-411, and a Free-411 salesman may follow up with them a few days later to solicit them as a potential advertiser.)
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