Introduction
As you all have read, the world had come to an end on October 13 with the death of Redbird (at least for my buddy @Mastermind85.) For me though, it had already died a month earlier. The reason for that is now there are only 3% cards (except if I decide to jump back on the Wells Fargo 5% card.) To me, 2% profit (3% minus 1% fees) just isn’t worth my time and effort. That meant my hourly MS profit (assuming a $2,000 VGC purchase and liquidation) was only worth $40/hr. Sorry, at that point, I’d rather watch next season’s “The Bachelor” in my pajamas.
So what now?
Easy. Back to reselling I go! The way I see it, let’s say you had 10 RB/BB/Serve cards and thus were running $50K a month through them. With a 2% profit, you’re taking home $1,000 a month. Now let’s say I can buy $5,000 of products to resell a month. At a 20% profit, you’re making the same $1,000 a month. And I don’t have to deal with driving to the Armpit of America. Sure, I’ll have to deal with returns (FBA) and some customer service issues (eBay), but that’s synonymous with dealing with a hacked gift card or losing one (gasp!) My point is, to me, MS was already on its last leg and this is the last nail in the coffin. Sure, I’ll still convert all of my Serves and get subaccounts to take advantage of AMEX Offers, but I won’t be fully loading them up every month. Or maybe I’ll finally get off my ass and put more time into flipping houses…
PS – I don’t how how the picture relates to the post; I thought it was cute and I MileNerd’ed it!
what happened a month ago – did your OBC or some other 5% CC get axed?
also the WF 5% card is churnable? can you have multiples open at the same time?
another 5% play got axed. The WF is tricky; I read you can get it again if you close everything down and start over in a year, but ymmv.
Gotta wait on that one haven’t had my current discover for a year yet.
What’s the 3% card? I’ve got college expenses to pay and have had terrible luck reselling.
Discover Miles
Definitely see your point, but for me I like the very low risk that comes with MS. I was curious, how many Serves and Redbirds do you have? Not counting subaccounts.
Ehhh…. have you ever met a Mormon Viet?
I know a Mormon Vet, does that count? 😉
wow, now that’s a unicorn!
Hi Vinh,
I agree with you in some points, but for me, reselling can’t be compare to MS. In reselling, you have to deal with cash flow when your items are not be sold. You also deal with returns and customers as you mentioned but there is no limited. Checking things to buy and ship them to Amazon or direct to customer cost time than buying and loading gift cards. Lately, you have to deal with tax in some points.
I likes to resell online as well as MS but for some people, reselling is not just what you and me thinking about.
Love your blog!
Very valid points. And I hope it deters others from getting into reselling too. =)
Ha!
Its a full time job…
I was once over 100 WPM =)