Gift Card Margin Hacking: What it Is and How to Do It

March 30 2016, 5:32pm

There are a myriad of ways to make money online. I've found success with some of the apps I've created, referring traffic, and ad networks. One new model I've explored recently is gift cards.

Gift cards might not strike most as an opportunity to make a profit online (especially when I explain that the process involves buying and exchanging gift cards). Stay with me for a bit as I explain how this works.

In business, you buy low and sell high. The process isn't too different here. In gift card margin hacking, money is made in the percentage that is saved when buying a gift card from services like Raise.

If you buy a gift card, valued at $10 for $5, for instance, that's a 50% margin. You're ahead $5.

We can take this savings a step further.

In states like California, gift cards that are purchased can be exchanged for cash if their value is less than a determined amount—currently $10 in California. Typically, you can also break up larger denomination cards into smaller ones. Thus, that $100 gift card that you purchased for 10% off, can potentially net you $10 in return.

I recently purchased this department store card and in the same trip as when I was doing groceries, exchanged it for a cool $10.

I've practiced gift card margin hacking a couple of times to save bigger on the things I buy—for instance, getting a free item when purchasing a $25 gift card (these types of sales often pop-up during the holiday season).

This could be done at a larger scale to earn a nice amount of revenue. If anything, buying a gift card for less, especially for places you would normally frequent or things you already are going to buy, is a no brainer.

Have you practiced gift card margin hacking before? What were the results?