I'll try and clear this up just a little bit.
I have used this system both ways. You can have a proxy server (that they provide for free) that watches traffic. And in turn redirects traffic destined for their retailers. Or you can go the DNS route, which essentially does the same thing.
In either case, it doesn't care about the traffic destined any where other than the companies we both get paid from.
Why does it have to be a "scam" when it works. Just because you are skeptical, doesn't mean it's a scam. I get a check each month... Do you? My service isn't slowed down, or act funny when it's on. My customers (for the most part) don't care about it. So what's the problem?
I have referred a hand full of companies to use this system as well. I have no problem trying to explain it. Because, again, I get paid using it, AND I see no issues with it. Be it privacy, or anything else.
From what I understand, it logs an IP, and the retailer. A third party keeps track of the purchase totals so you get paid appropriately. From what I was told, it is simply advertising revenue that is reversed to the networks where the customer comes from. They are trying to track what areas of the country buy what and from where, and if the retailers advertising is working in that area. In turn we get a check.
It has averaged about $.50 per sub per month if it matters to any of you. Real money, for next to nothing on our end, or costs.--