A $10,000 purchase would net 4,500,000 GoldPoints. Let's just say that Goldpoints is getting a 99% kickback from Valuemag (even though it must beless than that, the magazines cost something). That would mean that Goldpoints would receive from valuemag $9,900 in commission.

If Goldpoints is exchanging 4.5 mil points for 1,125,000 in airline miles, can one assume that they buy the miles from the airlines for ~.01 each? If so, those would cost Goldpoints $11,250.
Summary
For every 10,000 in magazine sells, Goldpoints is losing at least $1350.

This just doesn't make sense.

Comments?