<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pointman:
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?</font>
I dunno about anyone else, but I don't like the math either.
I'm getting my points out as quick as I can and redeeming my miles to boot.
Edited to add:
If for some reason you believe that Gold Points will be around for a while, there are a number of other partners who offer 150-225 points/dollar, which gives you a per airline mile range of 1.7c to 2.67c per mile. Better than a buck a mile on your cc.
[This message has been edited by Mikey likes it (edited 12-20-2001).]