Elliot is CEO of eMax. eMax is trying to build excitement for their company by giving away a VERY SMALL amount of stock to people who talk it up to other people. Whereas other companies give you a month of free service or $5 credit to your account when you refer a friend to their product or service, eMax gives a few shares stock– it’s very “Silicon Valley” (if you are from the area you’ll understand this because so many folks here get paid at least partially in stock). This is a simple marketing concept based on “social networking.”

Like all corporations do, even small mom-and-pop ones, I’m sure eMax corporation has authorized HUNDREDS OF MILLIONS of shares of stock of which I’m sure 99%+ will be held, of course, by the founders/investors. A tiny fraction will be given away via this marketing program and there is no way that anyone will “get rich” (slow or quick) from this. It’s just a clever way to incent people to spread the word.

It’s understandable that these days people are SO suspicious that they don’t want something even for free, but since there is NO COST to do this, I can’t see how their innovative refer-a-friend marketing program could be considered a “pyramid” scheme. Even if the company goes belly up and the stock remains worthless, what have you lost? Zip, zero, nothing!

So, if you like the idea of watching what happens to an upstart company because you own a few shares and you might win an iPod for your effort, then sign up (you provide only your name, email address, and what your favorite store is). If you you don’t want a few shares of stock for free or to possibly win an iPod, then just don’t sign up and don’t mention it to anyone.

My real name is Steve Rumberg, my real website is http://www.SteveRumberg.com and my real email address is steve@steverumberg.com. Feel free to contact me if you like.

Max Levchin is the name of a PayPal co-founder ?