The headline offer might say "£300 per referral" but i imagine that there are numerous hoops to jump through: they might have to sign-up for specific products and stay for a specified time before you get your money.
Considering 1&1 put so much into advertising and bought Fasthosts for £60m not long ago, I have a hunch they're making money. If only their service was so much better, they'd have no need to spend so much on advertising - it's not unusual to see 6,8,10,12 page spreads dedicated to 1&1 in computer magazines these days. Their average cost per acquisition must be huge.



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