How do the "miles for cash" businesses work?
 

I've seen a number of sites advertise that they'll buy your miles. They seem fairly schlocky, so I was wondering if (a) they were real, and (b) what the business model is...

•.http://getpeyd.com/
•.https://flipmymiles.com/
•.http://www.miles4money.com/

Are they just the back-end to travel agents, who are using the miles to buy business and first-class tickets for less than the listed price, and then pocketing the difference?

Try using that and you're risking getting your accounts suspended and your miles forfeited.

I don't actually want to use them. I just saw an ad for one of the sites, and then was wondering how the business worked...

is there a site to buy not sell? and could you risk closure for buying?

There are no 'good' sites for buying or selling miles. The owner of the site makes a nice profit and you risk having your acct. shut down.

I'd suggest investigating the sites and seeing how they scam the public. :)

Actually...
 

One of this site's ad sponsor, JetNSave, offers some "award" tickets in order to get their "up to 70% off International Business and First Class tickets " deals. These "ticket brokers" have been around for decades, buying miles low, selling award tickets high. So, just the usual business model. A lot of risk involved, as once the ticket broker is busted by the airline, they usually open the books and show all, then you get a call or notice your account is frozen with a message to call them. Not a great idea.

Most recent discussion:

http://www.flyertalk.com/forum/miles...ilability.html

There are reports that some of the customers of these businesses are getting award tickets for people here illegally. Also for unsavory forms of human trafficking.

You really do not want to have your miles account linked to such activities.

Not worth the risk! I read about an Aussie who used US DM Share miles to plump up his account, then he redeemed an award for a personal friend of his and got not only his account shut down but his family's as well.

Sounds biblical -- old testament sort of thing! Could it really be legal these days?

I call BS on this one. The guy had to be doing something shady. Taking part of the share miles promo is encouraged by US and redeeming awards for a friend is perfectly acceptable under the TOS. If he was sharing miles with himself then redeeming for a "friend" for some type of (track-able) payment, that's a different story.