Can you clarify your question?OK, the good news, I do not need manufactured spending. The bad news, as any small business, I struggle paying all my bills sometimes. Nonetheless, manufactured spending would seem to attract the crosshairs of many federal (and local) entities. Any thoughts?
I second this statement. If you can't pay your regular bills, avoid MS. You need to have some type of comfortable float in this hobby. Things change at a whims notice and if you don't have a backup plan or can float that money, you will be SOL.Only get into it if you are positive you can pay your monthly bills in full 100% of the time. Otherwise, avoid this hobby.
Thank you for the request for clarification. I am a physician, and I should probably put "struggle" in quotation marks. The bills do get paid always, some months the cash flow is slower than others, so, my whole tightly knit small office will all breathe a collective sigh of relief when the insurance companies checks finally come in after multiple b.s., delays and denials. Guess any business of this kind is similar, and/or seasonal.Can you clarify your question?
Why do you not need manufactured spend, but go on to say you struggle to pay your bills?
It's not making sense to me as put.
Perhaps your interpretation of it is unduly skewed? It certainly has enough publicity to be on the radar for such inquiries, if it isn't receiving them then maybe they view it differently than you do?But, looking from the outside in, MS would seem to be magnet for IRS/Homeland Security type inquiries, I am almost surprised we do not see stories about some inquiries more often.
I have been in the miles and points gig for over 30 years, and it has been an enormous blessing in my family's life and mine. Ultimately, it is a fabricated world with fabricated currencies which we have learned to use.Perhaps your interpretation of it is unduly skewed? It certainly has enough publicity to be on the radar for such inquiries, if it isn't receiving them then maybe they view it differently than you do?
I think he's saying that through his business he has enough regular spend that he doesn't need to manufacture transactions to generate extra points.I'm a little confused by this thread, as I still don't get the connection between "struggle to pay the bills" -> "we need MS". Are you looking at cashback via MS as a way to be more comfortable in your situation?
My view on this is that if you don't need to MS, don't. It is just another job. If you have enough points to achieve your travel goals, go travel.I think he's saying that through his business he has enough regular spend that he doesn't need to manufacture transactions to generate extra points.
To me, just like stripping, MS comes in all sorts of selectable levels. You can MS big-time or MS-lite. I used to only MS-lite where I only did GCs and such to cover minimum spend. I've since expanded towards the other side, then contacted ... and repeated. I have specific goals that don't require too much MS and I typically MS only for strategically placed miles. I've got a few folks at work into starter credit cards and when they tell me they are worried about meeting min spend (CSP at $4k in 3 months), I tell them to do what they can for 2 months, and then buy gift cards to make up the difference. Use the gift cards at their leisure over the course of the next 5 years, if needed. It may not be MS, technically, but it's the same principal and perhaps MS slow/starter with training wheels.My view on this is that if you don't need to MS, don't. It is just another job. If you have enough points to achieve your travel goals, go travel.
No different from stripping.
I think MS and this hobby in general has been a great enabler for me,not just the obvious benefit of travelling I have picked up some significant life lessons along the way. Sometimes you need to take some risks/ step out of comfort zone to get an extra mile. As long as you are not doing something inherently illegal like structuring there is no law that forbids / outlaws MS, it may however appear to be illegal. I think I would rather have few minutes of awkward conversation at Walmart or be questioned at airport (if it comes to that) if it provides me an opportunity to travel as much as I want to provide a steady supplemental cash back.Different strokes for different folks. Don't do it if you're uncomfortable with it.
Money laundering is a pretty simple concept. If you received money for doing something illegal, and you move that money around in order to make it appear that the money came from legal sources, that is money laundering. If you aren't doing anything illegal, or trying to cover up where your money came from, there's no money laundering.Whenever I have asked for clarification as to what might be considered "money laundering" from "experts" or Federal Agents, their responses seem ambiguous at best... What would be our protection if we should ruffle the wrong feathers?
Is reselling really that profitable? The more I read, the more I see people barely break even, especially with returns, reselling fees, etc.Newton FTW. I am not a big fan of the MS runaround, because I don't enjoy running around for pennies.
I much prefer the reselling angle, because then the running around is lessened (buy online) and the pennies become dollars become hundreds become thousands, if you use the right combination of risk and caution.
Of course, the thousands can become tens and hundreds, as well. (Talking monthly). I'm not sure if I'm headed that far north. But at least I have a compass.
Reselling is reselling. Wholesale or retail arbitrage, doesn't matter, if you pay attention and get good to decent ROIs.how much of this is truly "reselling" ie: just finding great sales and then reselling, vs finding ways to purchase products wholesale, and selling at retail?