It may be the largest work-from-home scheme you’ve never heard of, and while many decry it as a scam, many are also managing to make a significant amount of money doing it.

It’s called freebie trading, and I’ll be honest, I had never heard of it. Tens of thousands have though, and many of them are able to spend their free time making extra money, or even a sizable monthly paycheck.

Emily B. is just one of many Americans who have discovered Project Payday, an online moneymaking scheme based on something called “freebie trading.” Although Emily B. doesn’t mention it in her two-minute video, freebie trading involves using online forums, personal Web sites, YouTube videos, and other marketing techniques to drive traffic to special Web sites that advertise various products and trial offers all in exchange for a fee. What distinguishes freebie trading from traditional forms of affiliate marketing is that it is based on a trading model whereby individuals agree to buy products from these special Web sites on one another’s behalf in exchange for a cut of the resulting commission.

In the last few years, freebie trading has grown into a multimillion-dollar industry in which work-at-home professionals generate incomes of as much as $5,000 a month. As conditions continue to lag in the U.S. labor market, more and more people are turning to this controversial work-at-home business as a source of extra income. But behind the video testimonials and success stories lies an industry plagued by fraud that many insiders believe may be on the verge of collapse.

Great article from Doug Dowson, writing for Slate.com. Check it out on the ABC News Website.