The relaunch of InsideFlyer last week, supplanting Milepoint and a number of international affiliate sites, includes a massive promotion for buying LifeMiles. Arguably the largest promo ever offered but it also comes with a hefty price tag and a bit of risk.
The promo is for a 150% bonus on buying miles. That’s a massive number and bigger than anything LifeMiles has offered previously. But there’s a catch: It requires a minimum purchase of 100,000 points at a price of $3,894. Yes, the payout is big – buying 100k nets 250k at a price of 1.56 cents each – but that’s only slightly better than some of the direct sales LifeMiles has had and those typically do not require the massive investment.
I’m generally opposed to buying points without a specific redemption lined up and known to be available. Beyond that there is the risk associated with potential devaluation of the LifeMiles points. It has happened before and it may happen again. Sitting on a large pile of points from a program with such a history is not a risk I’m particularly keen on.
The promotion also requires relatively immediate execution. Registration is required before executing on the deal and said registration must be made by 6 October 2015. After that there is what appears to be a 24 hour window to complete the purchase. Or maybe only after 24 from registration and until the 12th of October. The language on the LifeMiles promo page seems to contradict itself on that front.
Either way, the short term nature of the promo and the challenges of liquidating that many points quickly, not to mention the significant cash investment required, are factors which give me pause. Plus, I don’t have $4k laying around with nothing better to do.
So, yeah, nice to see the folks at Milepoint/InsideFlyer/House of Miles trying something new. But I’m not yet sold on the new layout for the forum and the very, very small potential buyer base for the promo makes me wonder if this is more about the noise of a promo than actually something they expect to be converted on.
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