Giffgaff to pay out to 40pc of base


Community-run MVNO Giffgaff has launched after six months’ beta testing, and reckons it will pay out ‘rewards’ of cash and credit to 40 per cent of its 6,000-base this month.

It said it has already built a base of 6,000, with around half topping up their phones on a monthly basis.

O2-backed Giffgaff operates on the premise of ‘community spirit’, with users rewarded for helping other members with general queries, having opinions on how the network should run and introducing friends to the service. Members are rewarded with points, redeemable as cash, credit or as charity donations.

Giffgaff said users earn £4 a month on average, and that rewards will be issued bi-annually. The first payback is to occur in June and will reward super users with £200 each.

Giffgaff chief executive Mike Fairman said: “Twenty per cent of our users are actively involved in our forums, and 40 per cent are to get something back through the payback scheme. We are happy with the level of engagement.”

It has started a national advertising campaign, following launch of a series of price bundles, known as ‘goodybags’, ranging from £5 per month for unlimited UK texts to £35 for unlimited UK voice, text and mobile internet for a month. It is also launching a number of social media tools to get growth via viral marketing.