Mobile Website Guide > Mobile Phone Articles > The mGinger Mobile Money Maker Phenomenon: Scam Or Not?

The mGinger Mobile Money Maker Phenomenon: Scam Or Not?

Here is a novel concept: Use your mobile phone to pay for itself by making money directly from its use. mGinger promises to allow its country’s mobile phone population to do just that.

The premise is simple: Allow this Indian company to send through a maximum of 10 permission-based SMS ads per day, targeted for your particular interests, and receive a small payment. In addition, each ad you share or refer will add to your earnings.

Although legitimate and backed by $200 million in funding from investors, the company only started in 2007, and initially seemed to be having problems getting ad sponsors. Several people complained in blogs or forums about only getting one or two SMS ads, total, after being signed up for at least a month. But when you consider it takes the average offline business a good two years to make any impact at all towards functionality, their concern was perhaps premature.

If you visit mGinger’s site today, however, you will see a professional, well-designed portal with links and stats supporting their stated potential and goals. You can read their ongoing press and media coverage, as well as press releases.

A scrolling list of “top earners” shows the maximum payout (as of this date of writing) at 7,404 Indian Rupees. (That works out to $155.494 US Dollars.) It’s a far cry from “real internet wealth”, but hey it just might pay your mobile phone bill and data plan. And you get free games and coupons too. (You receive your first payout check when your account has accumulated 300 rupees.)

mGinger lists itself as an “opt in permission based marketing portal”, and has proactively added incentives like “mCoupons”, showing that the company is innovative and marketing-oriented. Their staff is openly listed, and in February 2009, mGinger won a Global Youth Forum’s Star Youth Achiever Award (ages in the company range from 25 to 36 years old). Appearing in Indian media often, including newspapers and television, mGinger practices better transparency than many companies, with founders Veerendra Shivhare, Chaitanya Nallan and Anil Sharma highly visible in all news coverage.

mGinger was actually started when its founder hit upon a brilliant way to combat the sea of spam flooding Indian mobiles. By accepting only ads targeted to your own interest, you actually receive information which is relevant to you, good coupon offers and discounts and “a bit of pocket money.”

mGinger fights spam in a more direct way too, encouraging its blog readers to call the National-Do-Not-Call list every time they receive a true spam SMS (the 500 rupee reward is an incentive too.) The benefits of this policy for mGinger is twofold:

* Put real spammers out of business
* Get everyone in India signed up for mGinger, to receive targeted advertising and offers they actually want to read about

mGinger openly admits there is a direct relation to how many people you know and send messages to, and how much you earn. In other words, if you’re a recluse who only phones your mother once a year, you’re not going to earn anything. But if you’re like the average Indian teenager or twenty-something, and spend several hours a day texting and chatting on your mobile to a flood of acquaintances, the chances are that it’s worth your while to join.

And why should North Americans care about mGinger?

Well, if nothing else, this company provides a wonderful model of successful marketing, in the way they work the media, practice transparency and social problem solving, get funding and turn a mobile phone problem into a money-making solution for all and sundry.

Anyone feel like starting something similar over here?

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