Objective: By the time you finish this course you will have determined if gift card reselling is for you and which of the two methods we cover is best for you.
Most people who get into travel rewards do so because they really like the idea of traveling further, traveling in luxury, or even just traveling more often.
We’re talking about that special Hawaiian honeymoon with all the frills.
Or that grand aspirational trip, not just on international first class, but an actual suite in the sky.
And we’re talking about being able to visit family across the country any time you want to.
All that, for pennies on the dollar.
There’s just one thing that is standing in the way, and that’s the need to build a treasure trove of travel miles and points.
The quickest way to do that is to earn the bonus miles and points that come with meeting minimum spends on new credit cards. Need to learn more? We highly recommend the TravelMiles101 course by our friends Brad and Alexi.
Note that we said “quickest”, not easiest, because we’re talking about spending several thousands of dollars here. Even more if you have ambitious travel goals!
This complementary course to TravelMiles101 is designed to show beginners how quick and easy the task of meeting minimum credit card spend can be when you buy and sell gift cards.
But before we dive into the course, let’s look at a low-hanging fruit that almost everyone can pluck for their first credit card minimum spend.
Meeting minimum spend organically
The best way to meet your minimum spend is through organic spending – using credit cards to pay for things that you’re going to pay for anyway, preferably with no or low credit card transaction fees. This includes things like car and health insurance, utilities, tuition, and taxes. In fact, consider pre-paying for several months ahead if you have the money available.
Once that is done, you may want to consider gift card reselling.
Why is that, you ask?
- Unlike manufactured spending, which may cost you 1-2%, you can usually break even with gift card reselling. Done well, you might even make a small profit. More on that later.
- After you meet your minimum spends and earn your bonus, gift card reselling is the most sustainable and accepted method of continuing to earn miles and point .
- When you resell gift cards, you are engaging in good old fashion commerce – trying to buy low, selling it higher for a profit, and reporting taxes if needed. This allows you to treat the endeavor as a business, and makes it possible to use some of the expenses you incur to offset your income. CAVEAT: We're not CPAs, so if this is something that you want to find out more of, you'll need to speak to smarter people than us!
- It can be done from home, or even when you are traveling internationally.
That sounds great and all, but is gift card reselling really for me?
Why learn about gift card reselling with us?
While your course authors are bullish about the future of gift card reselling, we understand that it can get quite complex and intimidating at first. We know. We felt the same way when we got started.
It may also seem like a risky financial endeavor – and that can be true. As with anything to do with credit card spending, things can go very wrong if you get overextended.
Well, the “good” news is that we have probably made every mistake in the book.
We will show you how to successfully find, buy, and then sell your first gift card. And we’ll help you avoid the pitfalls.
That said, this hobby is not for everybody. If you are someone who can’t be financially responsible, this is not for you. Just like with travel rewards, you can get into a lot of trouble if you are reckless.
You should never carry a balance on a credit card. Being financially responsible includes having an emergency fund and contributing toward retirement. If you’re unable to absorb an unexpected expense, then gift card reselling is not for you.
Who is gift card reselling for?
On the flipside, gift card reselling might be perfect for you if:
- You’ve exhausted all the ways to meet minimum spend organically.
- You do not want to risk losing all your travel rewards because you met minimum spend through manufactured spending.
- You want to make a little profit and earn the maximum number of points through category bonuses, while meeting minimum spends in a way that is predictable, reliable, and easy.
- You want to apply for business credit cards and don’t want to get creative about your business details during application. By starting up a gift card resale business, you could use a legitimate business for those applications.
If this sounds like you, welcome! We’re going to do everything we can to help you succeed in gift card reselling.
At this point, you can choose whether you want to go the bulk buyer route, or the gift card marketplace right. It’s up to you!