Today I’d like to suggest you are not really in the business you think you are in. Or at least you shouldn’t be. Here’s what I mean:
A few days ago, I flew Turkish Airlines. I was pleased to see they offer free WiFi on board. Well, free in exchange for signing up for their frequent flyer program, Miles&Smiles.
Miles&Smiles. No doubt.
Because I found out today that frequent flyer programs are really the heart of how airlines make money.
For example, Delta’s frequent flyer program is worth $26 billion, according to an estimate last year by the Financial Times. At the time of that estimate, all of Delta as a company was worth $19 billion.
Did you catch that math? Let me break it down, step by step.
Delta is not really in the business of getting you from Tulsa to Truth or Consequences. That part of Delta — planes, stewardesses, Bloody Mary’s — was worth -$7 billion last year. Yes, negative seven billion dollars.
Delta’s real business is doing lead gen for banks. Delta manufactures points. It sells these points to banks. The banks then use the points as incentives to get you to use their credit cards. That business is worth $26 billion.
Of course, Delta is not unique in this. Other large airlines work the same way. And it’s not just airlines either.
AAA and AARP offer low-cost membership programs in exchange for some nice perks and services. But how they really make money is lead gen for other industries. AARP was even started by an insurance company.
You could make the case that magazine and newspaper subscriptions are more of the same.
My point for you — well, I told you my point right at the start. So instead of beating a dead horse to water, let me just announce my new frequent reader loyalty program.
It’s called Insights&More.
Insights&More will offer rare behind-the-scenes footage of me, sitting in a cavernous Airbnb in Istanbul and writing this email.
It will also offer points, which you can trade in for mentorship, coaching, or sales funnel optimizations.
And finally, Insights&More will include free access to our suite of virtual lounges. Eat all the virtual croissants you like, and mingle with other classy and influential people who read these emails regularly.
Applications to become an inaugural member of Insights&More are being accepted now. Simply follow the instructions here and then let our customer service team know why you think you’d be a good candidate.
Oh. One last thing.
If you happen to own a bank or other large institution that profits from the hope and movement of human beings, get in touch. I have a business proposal I’d like to run by you. It could be beneficial for us both.