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The Points Guy: We never accept free flights [merged TPG discussions]

The Points Guy: We never accept free flights [merged TPG discussions]

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Old Mar 7, 16, 11:00 am
  #406  
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Originally Posted by Raffles View Post
The rumoured sale price for the site, which I was told by an industry exec, was $15m so easily seven figures.

You think seven figures is a lot but it isn't. Assuming $100 average card commission you only need 30 applications per day.

Put another way ..... TPG, on his readership numbers, would make $1m per year from Google Adsense alone if he bothered to put it up - which he doesn't. That is based on a direct extrapolation of my Adsense income to his.
I think the original poster was saying that Brian makes seven figures a year.

I was saying that The Points Guy website definitely has revenue of seven figures a year (especially if sold for $15M, would indicate annual revenue ballpark figure of $1.5-2M), but I don't know if Brian makes seven figures a year himself from the website, after paying hosting fees/bandwidth/contributor payments/advertising/paid airfare for reviews/etc.

But I'm sure he does quite alright. I doubt he's out in line at Walmart or elsewhere every day doing manufactured spend just to try to get more miles. And I'm not too concerned about whether he makes $500k, $1M, or whatever per year. I'm sure he does well, and he surely has that website sale amount in his back pocket anyway.
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Old Mar 7, 16, 3:51 pm
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Originally Posted by LPDAL View Post
What would really humor me is if he started an extension of his existing site called "The Bankruptcy Lawyer Referral Guy". No doubt a large chunk of his readers probably need that by now.
Signing up for (many) new credit cards does not force someone into bankruptcy. I know many that never defer payments, always pay in full. In order to be effective at churning (and this game), you can't carry balances anyway. That would hurt your utilisation and make it more difficult to keep getting more cards.
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Old Mar 7, 16, 11:16 pm
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Originally Posted by baccarat_king View Post
I know many that never defer payments.
Payments can range based on the terms of the contract. For example, paying the minimum balance every month is approximately 50-80% interest (even worse in some cases) and 50-20% actually taken off the balance.

The credit card industry rakes in billions (trillions?) in interest every year, people who pay the balance in full every month are not in the majority. That is why it is big business. Credit cards would have been dead long ago if the majority of the customers paid in full every month. But they don't, because satisfying instant gratification is lucrative.

-LPDAL

Last edited by LPDAL; Mar 7, 16 at 11:25 pm
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Old Mar 9, 16, 9:38 am
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Originally Posted by LPDAL View Post
Payments can range based on the terms of the contract. For example, paying the minimum balance every month is approximately 50-80% interest (even worse in some cases) and 50-20% actually taken off the balance.

The credit card industry rakes in billions (trillions?) in interest every year, people who pay the balance in full every month are not in the majority. That is why it is big business. Credit cards would have been dead long ago if the majority of the customers paid in full every month. But they don't, because satisfying instant gratification is lucrative.

-LPDAL
People signing up for 20 high annual fee credit cards aren't a majority either.
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Old Mar 9, 16, 1:45 pm
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Originally Posted by LPDAL View Post
What would really humor me is if he started an extension of his existing site called "The Bankruptcy Lawyer Referral Guy". No doubt a large chunk of his readers probably need that by now.
Wouldn't someone have sued him by now if a large chunk of his readers were in need of a bankruptcy lawyer?

It's a semi serious question though: Can they be held responsible for their services as a 'credit card broker'? I've seen that Raffles from headforpoints.com has a disclaimer stating that he's technically acting as a credit card broker. (Of course it's a UK based site.)
A lot of sites have some sort of credit score guide which often includes basic advice on credit card utilisation (pay your balance in full every month etc.) and I'm not convinced they're doing it because they care.
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Old Mar 9, 16, 2:19 pm
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Originally Posted by paulqle View Post
Wouldn't someone have sued him by now if a large chunk of his readers were in need of a bankruptcy lawyer?

It's a semi serious question though: Can they be held responsible for their services as a 'credit card broker'? I've seen that Raffles from headforpoints.com has a disclaimer stating that he's technically acting as a credit card broker. (Of course it's a UK based site.)
A lot of sites have some sort of credit score guide which often includes basic advice on credit card utilisation (pay your balance in full every month etc.) and I'm not convinced they're doing it because they care.
Under current US law, no. Theoretically, the CFPB could regulate it, but too much pushback.
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Old Mar 9, 16, 2:46 pm
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Originally Posted by Adam1222 View Post
Under current US law, no. Theoretically, the CFPB could regulate it, but too much pushback.
Anyone can be sued for anything. Does TPG have the money to defend a class action lawsuit? Not sure. I doubt he has director's insurance.
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Old Mar 9, 16, 6:21 pm
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Originally Posted by TMM1982 View Post
Anyone can be sued for anything. Does TPG have the money to defend a class action lawsuit? Not sure. I doubt he has director's insurance.
Of course anyone can be sued for anything, but it is difficult to obtain contingency representation without identifying a relevant law.

He would not be sued in his individual capacity, but as an employee of Bankrate. (Director's insurance is irrelevant since he's not a Director of Bankrate.) Bankrate has in-house counsel, and can afford representation for frivolous litigation.

Note that the threat of a case being a "class action" isn't very meaningful here. At the stage at which a case with no legal basis would be dismissed, the costs are the same between a class action and an individual one.

Last edited by Adam1222; Mar 9, 16 at 6:35 pm
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Old Mar 9, 16, 9:16 pm
  #414  
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The One-Bonus-For-Life-Per-Credit-Card rule will probably hurt these sites. I doubt that there are many first time visitors each month. I bet it is mostly recurring visitors.
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Old Mar 9, 16, 10:38 pm
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Originally Posted by Dieuwer View Post
The One-Bonus-For-Life-Per-Credit-Card rule will probably hurt these sites. I doubt that there are many first time visitors each month. I bet it is mostly recurring visitors.
His site is for newbies... and the cards newbies are interested in are usually different flavors offered by Chase.
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Old Mar 10, 16, 4:08 am
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Out of curiosity, I had looked at his youtube video yesterday and it only had 500 views. Today, not 24 hours later, it has 45,000 views. How much is he paying in advertising to get those views???
With Youtube showing views publicly, it is probably very important to him to get those up if he wants to gain the interest of a network, would that be correct?
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Old Mar 10, 16, 8:21 am
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Originally Posted by paulqle View Post
Wouldn't someone have sued him by now if a large chunk of his readers were in need of a bankruptcy lawyer?

It's a semi serious question though: Can they be held responsible for their services as a 'credit card broker'?
No, that doesn't make any sense at all. By definition of most credit card contracts, the debt incurred is the responsibility of the cardholder except in cases of fraud and/or identity theft .

I can't imagine someone going into court and blaming TPG because they maxed out their credit card that Brian's website suggested they sign up for and are now unable to afford payments on. Again, that doesn't make any sense at all.

-LPDAL
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Old Mar 10, 16, 9:31 am
  #418  
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Originally Posted by runfit View Post
Out of curiosity, I had looked at his youtube video yesterday and it only had 500 views. Today, not 24 hours later, it has 45,000 views. How much is he paying in advertising to get those views???
With Youtube showing views publicly, it is probably very important to him to get those up if he wants to gain the interest of a network, would that be correct?
Gotta spend money to make money!
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Old Mar 10, 16, 10:22 am
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Originally Posted by kokonutz View Post
Gotta spend money to make money!
Gotta make money to spend money!
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Old Mar 10, 16, 10:47 am
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Originally Posted by runfit View Post
Out of curiosity, I had looked at his youtube video yesterday and it only had 500 views. Today, not 24 hours later, it has 45,000 views. How much is he paying in advertising to get those views???
With Youtube showing views publicly, it is probably very important to him to get those up if he wants to gain the interest of a network, would that be correct?
I don't think he's spending too much... probably a few $100's per video. Which is probably a drop in the bucket compared to the cost of producing the video.
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