Some people might think there's a catch when they see an offer for a free cell phone, but it's really just a matter of knowing one key piece of information: Wireless providers such as T-Mobile and Verizon make the vast majority of their money on monthly service rates - not on the phones they sell.

For example, if you pay $59.99 a month for a basic calling plan with T-Mobile, that adds up to about $720 a year (far more than the one-time price of a new phone)! Compare that to a new cell phone priced at around $200 and it's easy to see where they make their money - monthly subscriptions... not phone sales.

Can you see now why they're so willing to hand out free phones?

When considering where to look for free cell phone offers, you can go directly to a wireless service provider or look for an authorized wireless reseller.

  1. Direct through Wireless Providers
  2. Wireless service providers like T-Mobile make a lot more money from your monthly subscription than from the sale of a phone - so much so that they're always running promotional sales on brand new phones, complete with free shipping.

    Wireless from AT&TYou get to choose the monthly plan that works best for you, and you can carry over your current phone number from another wireless provider.

    AT&T also has some free phone offers worth looking at, such as the Nokia 6085. It comes with a free bluetooth headset, case, and car charger - perfect for the back to school student, or the business professional.

  3. Authorized Wireless Reseller
  4. If you'd like a little more variety in your choices of phones and providers, then look for an Authorized Wireless Reseller.

    An Authorized Wireless Reseller is a company like KoolPhone that markets all major wireless phone carriers and offers some attractive incentive programs. The advantage of going through a reseller is a much greater range of choices: you get to choose from any wireless provider, and any service plan, and you usually will have a wider selection of free cell phone offers to choose from.

    For example, you can get a free Motorola Razr from Koolphone plus free shipping with activated service plan. You can choose from AT&T, Nextel, T-Mobile, Verizon, and other wireless service providers.

Remember, wireless service providers are still making a lot of money on your monthly subscription (which is the same regardless of whether you paid full price for the phone or got it for free - but personally, I'd much rather get the phone for free, and get some cash back along the way).

I haven't paid for one in over 6 years by finding free phone offers every two years, after my wireless provider contract expires - and I love getting a new phone every couple of years too.

I hope that after reading this article you'll never have to pay for a new cell phone again either.