It would seem that the idea is for you to fly skydivers etc and as a result not to have to pay the costs of the flight yourself. Yet while he says this is within the rules, I don't think it is as far as the ANO reads. It says something along the lines of a pilot who does not hold a commercial rating has to pair his "share" of a flights costs. Ie: five People including the pilot will split the costs five ways. The crucial thing is that the pilot has to pay his share. It is illegal if he does not as far as I understand it.
I may be wrong and usually am so someone who is more familiar with such matters would need to comment on what I've said.