I don't know much about Credit Card Insider, but they seem to like me

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Background: Using a Balance Transfer Offer to Pay Off Credit Card Debt
Background: Best Travel Credit Cards for Airlines, Hotels, and Gas

A few months ago, one of my long-time readers reached out to me with a sort of tentative offer to write some guest posts on a website she works for. That hasn't ended up working out, but it did lead to an unrelated gig writing guest posts for a website called Credit Card Insider. I've now written a couple posts for them (above), and while no one has asked, I thought I would preemptively answer a couple potential questions my readers might have if they stumbled across one of those posts.

I have no idea what Credit Card Insider's business model is

A cursory examination of the way they insert application links into my posts suggests it probably has something to do with credit card affiliate links. But that has never entered into any discussion I have had with anyone at the site.

I get no cut of affiliate revenue (if any)

As I explained last month, I have no affiliate links here on the site (although many of the signup links for cash back portals, useful services like Venmo, Plink, and Uber, etc., do give me some nominal referral bonus – and thanks for using those links if you're so inclined!), and 100% of my remaining revenue comes from subscriptions, one-time gratuities (thanks Thomas!), and book sales.

In other words, people who like my work and want to see me continue cover my expenses, and I only answer to my readers.

Credit Card Insider pays me a flat fee per post. I find it fair and I consider it good publicity for this site.

And hey, if anybody else wants to sponsor blog posts, you know how to reach me!

Credit Card Insider exercises no editorial control over my content

There's a small group of folks at the site who come up with general post topics and assign them to writers. But no one at any time has implied that there are certain cards that need to be included in any given post, or that some cards need to be pushed harder than others. Frankly I suspect they had never even heard of the BankAmericard Cash Rewards card, which offers a healthy 3% cash back at gas stations. Good card!

Of course that could change at any time, and I'd certainly stop writing for them if my voice was ever compromised in that way.

Further, my feelings about cards like the Sapphire Preferred are well-known, so I'm not going to write a post on some other website praising its value or flexibility or whatever.

Credit Card Insider comes up with the headlines

The one piece of "editorial control" they do exercise is over the headlines. For example, my column "Best Travel Credit Cards for Airlines, Hotels, and Gas" is about thinking about your spending patterns and travel needs before deciding on the credit card that's right for you. In fact, I probably would have titled it "think about your spending patterns and travel needs before deciding on the credit card that's right for you."

But that's why they get paid the big bucks.

I suspect our audiences are very different

When my reader first suggested I write some guest posts, I worried about diluting my web presence by writing in bits and pieces in various places all over the web.

But if you visit Credit Card Insider you'll see that broadly speaking they're aimed at a very different audience than I am here. My blog has, over time, grown increasingly focused on a fairly niche subset of travelers: those who are seeking to maximize their value and minimize their costs when traveling — and who are willing to put in some serious work to do so.

While I try to write without the jargon and codes so many people in our hobby use, the techniques I describe are frankly inaccessible to the vast majority of the population, whether it's from lack of interest or lack of time. So I don't think I'm cannibalizing any content that I would post here by writing guest spots for Credit Card Insider. That is an issue I'm sensitive to, however.

With all that out of the way:

Those are the answers to the questions I had before I started writing for them. But if you have any specific questions about the situation (or anything else), the comments, as always, are open.

A quick note on comments

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For some reason, I've never experienced any problems with "trolls" in the comments on this blog. I think I've only deleted maybe 3 or 4 comments since I started blogging, twice at the poster's request and once or twice for a comment that was double-posted.

That doesn't mean I've never come under criticism in the comments. On the contrary, my comments are full of people telling me I'm an idiot, a terrible blogger, and a lousy travel hacker. 

But that's not trolling; what if they're right? It would be pretty irresponsible for me to delete those comments and deny my readers those dissenting views. 

Anyway, all this is just to say that I had a good laugh reading through the comments to my "Unleash" series from September of last year as I went through and retagged them this afternoon for ease of reference.

To this day, those are some of my most popular posts, and among the most heavily-commented-upon.

And it sure seems like I did not make many friends that week!

Reader m commented:

"agree with others- better to keep mum just because if you add the minor wrinkles re incompetent cashiers, split tender, customers asking too many questions, words like "using GC" instead of "using deb card"- throw it all in the mix, results in too much scrutiny and it dies. which is why bloggers should leave it alone and just go about their business.
have been a fan of yours, but disappointed that you chose to blog about this one."

Reader Piecerate commented:

"Can't say I'm happy to see you blog about this. I think this a deal that many know about but it is not utilized by enough people to draw unwelcome attention. Let's hope this doesn't go south."

Of course, history has been kind to my decision to go to press with the "Unleash" series. Over 6 months later, I've liquidated hundreds of thousands of dollars in PIN-enabled debit cards, and my readers have no doubt liquidated many millions more.

I sometimes refer to my readers as my "force multipliers:" if one of my blog posts kills a deal 1 month early, but 100 of my readers get to take advantage of it for the remaining 8 months, I don't lose any sleep over the lost month.

So this is just a quick note thanking ALL my commenters for your feedback and for reading this blog, whether you love it or use the opportunity to decompress your angst at the whole messy world of travel blogging.

Mid-week roundup from around the web

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I periodically like to clear out my RSS reader and pass along the most interesting news that has recently crossed my desk:

  • Marriott's April 8, 2014 devaluation sucks, putting the Courtyard Portland City Center and Residence Inn Portland Downtown/RiverPlace in Category 6 and therefore out of reach for Megabonus and annual free night certificates;
  • Frequent Miler makes me laugh, since I can't bear to spend any money on Amazon unless I've redeemed Plink points for gift card credits;
  • Chasing the Points reminds us to not just manage hard credit pulls, but also utilization ratios;
  • Frugal Travel Guy wants you to sign up for a card that offers just 50,000 HHonors points and a $50 statement credit, and that you'll never use again (don't do it);
  • View from the Wing wants you to sign up for a card that offers 75,000 HHonors points and has a $75 annual fee. Instead, apply for the no-annual-fee version and then upgrade the card to Surpass and earn a total of 90,000 HHonors points for the same annual fee;
  • Frugal Travel Guy gets upset about your whining;
  • Milenomics does the shuffle;
  • PFDigest tells you to watch what you write in your PayPal message boxes (I usually go with "March rent").

Good work today, team.

This blog is not free

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I started blogging over a year ago because I was growing more and more serious about travel hacking and was disappointed with the quality of the blogs I was reading. After just a few months I had already noticed a lot of problems within the blogging community:

  • Blogs are repetitive. There are many more-or-less permanent features of rewards programs, and I was reading post after post repeating the same information. The Southwest Companion Pass is a great deal, but it's also a deal that hasn't changed in years: it doesn't require a new blog post, it requires a working search function;
  • Blogs are boring. I love reading about tips and tricks for booking award tickets, but I have an incredibly low threshold for staring at pictures of every meal a blogger ate in Milan;
  • Blogs are shills. In the United States of America in the 21st century, the finance industry is an all-consuming behemoth, swallowing everything it touches — and blogs are no exception. Credit card affiliate links are so lucrative it is simply impossible for a person of average quality to resist the kind of payday aggressive pitching of those links can provide.

That last point brings me to a post I read today on Matt's blog over at Saverocity. Matt asks the question:

"Can we create a new paradigm, where bloggers put the readers first, cut out the affiliate companies altogether, add value, and everybody wins?"

Why blog?

Obviously, there are a lot of people who think the travel hacking community would be better off without blogs and bloggers. While they undoubtedly have some legitimate concerns about blogs targeting people who don't have the financial responsibility to make it lucrative, those concerns are usually mixed with a self-interested belief that the fewer people who know about various techniques, the longer those techniques will remain viable for those in the know.

Personally, I blog because I want as many people as possible to have the same opportunities I do to travel the world for next to nothing, stay in 5-star hotels for the price of youth hostels, and make money taking advantage of credit card rewards programs. If 100 people find out about a technique thanks to my blog, then each month that technique continues to exist is worth 100 months of my taking advantage of it alone. My readers are my force multipliers.

This blog is not free

It's natural to think of everything available on the internet as "free," and that's certainly something I'm guilty of from time to time. But it's not true, and that's the fact underlying Matt's argument. If you want to read fresh, original content, someone has to be paying for it:

  • It might be Google or another display advertising network paying the blogger for your surfing and click data, as well as any personal information stored in your cookies;
  • It might be a credit card company hoping the blogger will provide less-than-objective analysis of a product if the payout is big enough;
  • Or it might be the blogger paying for it by donating their money to pay hosting costs and their time to produce the content you value.

In none of those cases is the content free, just because access to it is.

Pay for content worth reading

Over 500 readers visit this site each day, and hundreds more follow me on Twitter, through my RSS feed, or receive e-mail updates with new posts. That's how they find out about techniques I've covered in detail, like:

I don't currently have display advertising, and I don't have affiliate links, and I'd personally like to keep it that way. That's why rather than having Google pay for my content, or have the credit card companies pay for my content, I introduced the unprecedented opportunity for my readers to support the site directly by signing up for PayPal subscriptions.

A weekly or monthly contribution of $2, $5, or $10(!) goes directly to keeping this site proudly independent.

So if you've learned any tips or tricks from this site that have increased your ability to earn money and generate value, please consider signing up for a subscription or making a contribution directly to freequentflyer@freequentflyerbook.com (also accepted: Amazon Payments contributions!).

If each of my readers made a contribution of just $2 each month, that would guarantee this site's sustainability and independence for years to come. That's my goal, and I hope you'll join me in getting there together.

To subscribe, just visit freequentflyerbook.com and look for the drop-down box that looks like this:

And thanks in advance.

Weekend roundup from around the web

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Here's the stuff that's been cluttering up my RSS reader:

  • Chasing the Points says the Chase Amazon Visa has the same 20,000 point, $335 airfare redemption as the Chase Freedom, which makes it a 2.68% cash back card at gas stations;
  • View from the Wing wants you to redeem Virgin Australia miles for one-way Delta flights;
  • Running with Miles buys and resells electronics for fun and profit;
  • The Points Guy wants you to leave points in your flexible accounts as long as possible;
  • but that's where the banks can get them. I say transfer as soon as you have a reasonable guess of where you'll need them.

Enjoy the rest of your Sunday!

What's in my wallet?

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Reader Winston has asked what credit cards I personally carry, which I think is a great way to keep a travel blogger honest. Of course, it's slightly more relevant for bloggers who pepper their posts with affiliate links, but what's good for the goose, etc.

US Bank

US Bank is quietly a powerhouse of lucrative credit cards. I carry three cards they issue, and put spend on all three each month:

  • Cash+. 2% cash back at drugstores, with no minimum redemption;
  • Flexperks Travel. Double Flexpoints at gas stations, worth up to 4% cash back in redemptions for paid airline travel;
  • Club Carlson Business. 5 Gold Points per dollar spent everywhere.

Chase

Lots of old standbys here. The Freedom is actually the result of a product change from Chase's great Slate product, which I got back when I carried balances:

Bank of America

My oldest credit card, which I put spend on once a year or so:

  • Cash Rewards. 3% cash back on up to $1,500 on gas stations quarterly.

American Express

Three great cards:

Barclaycard

The Arrival has a $89 annual fee, so if I can't have that waived in April I'll be closing it. Lucrative, though:

  • Arrival World MasterCard. 2.22% cash back everywhere, when redeemed against travel purchases;
  • US Airways. Signup bonus.

Citi

Citi's a slum: you only visit when they have something you need. I'm actually waiting to receive the Dividend Platinum Select, which I product changed my formerly 5% cash back ThankYou Preferred card to a few weeks ago:

Discover

Fidelity

  • Investment Rewards American Express. 2% cash back everywhere.

And now my cards are on the table.

APR and APY are irrelevant concepts in the world of manufactured spend

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When lawmakers decide to crack down on payday lenders, they invariably cite the extortionate annual percentage rate, or APR, charged by those lenders. Wikipedia helpfully provides this example:

"For a $15 charge on a $100 14-day payday loan, the annual percentage rate is 391.34%."

You won't find a bigger defender of consumer rights and economic justice than your humble blogger, but I have to confess that I've grown increasingly uncomfortable with the concept of APR and APY (annual percentage yield) as applied to my own lifestyle.

The important thing to understand is that APR and APY aren't laws of nature: they're accounting identities that are based on the idea of compound interest: if the fees you pay, or interest you earn, is added to your original balance on a daily or monthly basis, then you'll end up paying (or earning) more over the course of a year than you will if you simply multiplied your first month's balance by 12 times the monthly interest rate paid (or earned).

How, then, to account for manufactured spend? Am I earning interest when I take out a "loan" for $1007.90, with a "rebate" of $20.16, then use the proceeds to pay off my loan during its 20-50 day grace period? If so, what's the relevant time period to extrapolate over the 12 month period required for APY calculations?

The Barclaycard Arrival World MasterCard allows immediate redemptions of earned miles, meaning the total turnaround time between earning and redemption might be as little as 3-4 days; using APY calculations I'd end up with something like 202%.

What I'm trying to say is that while this sounds like an epistemological question, it's actually the opposite: it's the question of how to account for certainty.

That's why I'm increasingly inclined to think about manufactured spend not as an investment, with concomitant risk and return, but as a job. It has a more or less guaranteed return depending on the time and skill you devote to it.

You should think about APR when deciding on a mortgage lender, and APY when deciding on a retirement fund, but when thinking about manufactured spend the much more important concepts are revenue and cost.

Personally, my rule of thumb for the bulk of my manufactured spend is that every individual transaction has to be worth it. Of course I run a lot of experiments for the sake of my readers —I redeemed 8,000 Ultimate Rewards points for a roundtrip to Philadelphia on Saturday, and I don't expect to turn on a profit on those points! But if I pay $17.68 for $44.76 in travel redemptions with a Barclaycard Arrival card, I'll call that a $27.08 profit without losing too much sleep over what time period it should be calculated over: a 60% discount on my paid travel is good enough for me, without claiming to have beaten the market with my brilliant "investments."

Breaking: internet censorship, or, is Capital One history's greatest monster?

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How low can you go? Try Capital One, whose agents allegedly sent a letter to Personal Finance Digest's hosting provider telling them to remove his site from the internet.

It's unclear from PFD's post whether the letter was a "takedown notice" within the meaning of the Digital Millennium Copyright Act, the abuse of which is a violation of federal law ("Any person who knowingly materially misrepresents under this section—(1) that material or activity is infringing...shall be liable for any damages...incurred by the alleged infringer...who is injured by such misrepresentation, as the result of the service provider relying upon such misrepresentation..."), or merely a threatening letter. However, based on the agent's admission — in writing! — that:

The website in discussion did not host, nor hosting [sic] fraudulent content against Capital One.

It seems to me that PFD has an airtight defamation case at least against the "RSA Anti-Fraud Command Centre," whatever that is, and Capital One if RSA was actually acting as their agent in this case.

I don't have any Capital One cards, but if I did I'd shut them immediately and tell the CSR why I was doing so. In the meantime, I'm removing all links to Capital One from my permanent pages until I see an explanation for this abhorrent behavior. It's not much, but it's what I can do to show solidarity with PDF on my little corner of the web.

Read Personal Finance Digest's post for all the gruesome details.

Housekeeping: coming site layout changes

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I want to drop a quick note that this weekend I'm going to be fiddling around with this site's layout and formatting. This doesn't affect you in any way, and there shouldn't be any downtime, but some objects may be moved around the site so you may not be able to find everything exactly where you're accustomed to seeing it.

If you listen to any podcasts you may have heard ads from Squarespace, who happen to be my website's host. Since there's no other reason to know anything about Squarespace, let me give you my unvarnished review in one sentence:

Squarespace is pretty good at what they do, and terrible at everything else.

The main problem I have with the service is that they obviously have no sense of the ways that people actually design and build websites. If you think this website looks even halfway like a real website, it's because I hacked it together that way myself.

The key thing to know about the service is that all websites have to select a "template," of which they have quite a number to choose from. However, there's no way to know how a template actually works until you select it and start building the website. If it turns out that it doesn't suit your needs, you have to start over from scratch and rebuild the site. Content is saved, but that's small comfort – for me at least.

Anyway, that's how I'm going to be spending this weekend, so if I don't reply to e-mails or comments immediately, it's because I'll be swearing loudly at my computer.

Now, back to your regularly scheduled programming.

Thank You, Blog Readers and American Heroes

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I've always thought of this blog as a kind of collaborative project between me and my readers: I love sharing my new schemes and discoveries, and some of my best ideas have been contributed or inspired by readers. Today I want to continue opening the books on the project, and share with the curious some details on the support my readers have provided to the site.

Book Sales

It occasionally comes up in comments that I'm always trying to sell books.

I sure am!

Between the day the book first went on sale on Valentine's Day, February 14, 2013, and December 31, 2013:

  • 142 readers bought or borrowed the book through Amazon.com;
  • Another 118 people downloaded the book for free during the week-long promotional period I launched the book with;
  • I make about $2 per book that's purchased or borrowed, and earned a total of $263.44 from Amazon book sales in 2013.

Signup Links

While I don't have any credit card affiliate links here on the site, there are a few referral links scattered around, and I occasionally get a few dollars from those referrals:

  • Plink. 14 referrals; 100 Plink points, worth $1, per referral. $14.
  • Uber. 7 referrals (1 complete, 6 pending); $20 Uber credit per referral. $20 ($120 pending).
  • TopCashBack. 3 referrals; $10-15 per referral. $35.
  • Venmo. 1 referral; $1-5 per referral. $1.
  • BigCrumbs. 0 referrals.
  • Fat Wallet. 0 referrals.
  • Discover it. This is a "refer a friend" signup link for the Discover it card, which is also the only way to get the $50 signup bonus for the card (if you sign up for the card directly there's usually no bonus). 0 referrals.

PayPal Subscriptions

About a month ago, readers who visit the blog's website (rather than using an RSS reader or e-mail subscription) noticed that there was a new box in the righthand column, giving the option of signing up for a "PayPal subscription." As I explained last Friday, this is a way to continue supporting this project by making a small weekly or monthly contribution, if you feel like it's made a difference in your effectiveness playing the game.

  • PayPal Subscriptions: 1 (thanks for your support Ben!).

Conclusion

I don't have any terribly exciting conclusions to draw from this data:

  • This website is a labor of love, and my main reward is getting feedback from the amazing readers I've been able to help;
  • It means an incredible amount to me when readers buy the book, use my signup links, and of course signup for PayPal subscriptions to provide continuing support for the site;
  • Keep reading, keep writing comments, and keep the feedback and suggestions coming. The tips and tricks you guys suggest get multiplied through this site and help hundreds of people every day make or save thousands of dollars every year.

So here's to another year of travel hacks: new, old, and crazy! I do hope you'll stick around.