Maximizing Inventory Spend ft. BowTiedBum
Get more rewards on stuff you already buy
Today’s free guest post is from BowTiedBum, who specializes in credit card rewards.
Given that Amazon sellers use credit cards to spend lots of money on inventory every month, there’s plenty of synergy between our niches.
If I didn’t plan on buying a house next year I’d be all over this stuff so please take advantage of it.
BowTiedBum here. BowTiedMahi did an incredible job showing you how to launch your own Amazon FBA biz. I’d like to show you how you can parlay that knowledge with some credit card tactics. For every $100K in spend, we should expect around a $15K return on our spending by signing up for credit cards in a strategic fashion.
Let’s get right into it.
For those that don’t know me, I write a Substack and have a Slack community that discusses how to use credit cards to generate lucrative returns. My Substack outlines exactly which credit cards to get, which order to get them, how to generate spend to make sure you get the signup bonus, and my Slack Group helps you answer any questions you have along the way.
Almost all of the members in my Slack Group are on track to earn $10K+ credit card rewards their first year in this game. They can expect to earn an additional $10K each year of their membership, by using these tactics.
Basic Overview of BowTiedBum Tactics
Quick high level overview. Credit card issuers love to compete for your business, and offer lucrative signup bonuses as a way to do so. You’ll often see credit card commercials showing a couple vacationing at a lavish resort or sipping a frozen cocktail while lounging on the beach. The credit card issuers can afford to do this for two reasons. First, they charge merchants a processing fee for each transaction. Second, they know that many of their customers will get sucked in, thinking they can get a free vacation, but will fail to pay their bills on time and rack up tons of debt at high interest rates.
Here’s how it works. Banks offer a signup bonus for premium credit cards (usually between $500-$900) after you hit a certain minimum spending requirement (usually $3K-$5K). Once you complete the spend requirement in the time period (usually 3 months), you get the points deposited in your account.
Again, they offer this knowing that many people will go into debt, will not hit the signup bonus, and just be overall irresponsible with their spending in general.
The banks are playing a game where they try to hook you in and trap you, like a fisherman using bait.
My job is to help you rob the banks and beat them at their own game!
Chase Business Cards
Business cards often offer more lucrative sign up bonuses than personal cards.
That’s great news if you’ve been following BowTiedMahi’s guide and have started your Amazon FBA business! If you haven’t? There’s still hope!
A common response I get to this is, “I don’t have a business though.”
Many issuers (particularly Amex and Chase) are very lenient in who qualifies for business cards and will issue them to basic sole proprietors. To be clear, if you sell anything online such as baseball cards or furniture on Facebook Marketplace, you can often qualify for a business card.
My favorite card is the Chase Ink Business Cash, because with a few tricks, you can generate 8% back on all purchases.
It also has a $900 bonus after spending $6,000 in the first 3 months after opening.
That’s a 15% return on $6,000 spending. Best of all, this card does not have any annual fee, so you can keep it open forever.
Good news! There is also an additional no-annual fee Chase business card that also has a $900 sign up bonus. The Chase Ink Business Unlimited also offers a $900 bonus after spending $6,000 in the first 3 months.
Chase usually makes you wait 30 days in between applications, but many people in the BowTiedBum Slack group have had success applying for (and getting approved) for both in the same day!
*Note* In the Slack Group, we have a shared spreadsheet that tracks all approval data points to help you make informed decisions.
To be clear, if you apply (and get approved same day) for a Chase Ink Cash, you can also apply for a Chase Ink Unlimited that very same day!
It gets better (we’re just getting started).
If you have a spouse, significant other, etc. (we refer to them as Player 2 or P2)…You can have them apply as well for the same cards and get the same bonus.
Here’s what $24,000 of business spending looks like following the BowTiedBum tactics:
With $24,000 household spend (2 Chase Ink Cash’s and 2 Chase Ink Unlimited’s), you’d generate $3,600 cash back. Worth SIGNIFICANTLY more if redeemed for airline or hotel travel.
This is simply from just two cards each. Note that after a month or two, you can apply to the same cards and get the bonuses again (refer to the spreadsheet in the Slack group for data points), and many Bums have been doing just this.
Additionally, there are multiple other cards to get, and the Substack/Slack outlines the order so it takes all of the guesswork out.
*Note* If you get denied for any of these cards, make sure to call the reconsideration line. Often times, they just need to verify some basic info like your address. The Slack Group has a 90%+ approval rate after calling the reconsideration hotline.
The first question I always get is “but I don’t know how I’ll spend that much.”
We have two options. Either spending with your own Amazon FBA biz (by far the best option). Or manufactured spending (purchasing cash equivalents or items that can easily be converted to cash)
Let’s have a look at the first and best option. Your own biz. Amazon FBA and BowTiedBum credit card hacks pair perfectly together, as Amazon selling requires a lot of spend. If you have any other biz that requires spend, that works too, and will make this game much easier.
If you still aren’t convinced to start your own biz, you’ll have to do manufactured spending. Some of the popular manufactured spending techniques in the BowTiedBum community are gift card reselling (don’t do this during the signup bonus period though), buying groups, and paying rent.
Buying groups are very straightforward and one of the first MS methods that newbies start with. You sign up for a service like mysbuyinggroup.com or BuyForMeRetail, and you purchase products to send to them from retailers like Amazon, and they send you a check or ACH payment in return. Why do they do this? They purchase in demand items that usually have quantity limits, so they get people like you to send them those items, so that they can resell them later. *Hint* If you’re a hustler, oftentimes you can see which items are in demand and either sell them yourself either locally or online. This works extremely well with consoles.
8% Back Play
Before giving away too much sauce, I’ll leave you with a bonus gem. You might have seen it in my Twitter handle, but I get 8% back on every single purchase.
Here’s how I do it. I put all of my spending on my Citi cards (either Citi Double Cash or Citi Premier). This gets me 2% or 3% back. I then buy no fee gift cards online that code as 5X (for office supply category with Chase Ink Cash). I can use these gift cards as “debit cards” to pay off my Citi balance, to generate 2% + 5% for a total of 7%. After, I can use Chase’s PayYourSelfBack feature to redeem my Chase points at 1.25 cents per point.
What 100k of Business Spend Looks Like
While there are multiple paths to take in this game, to get a solid return on $100,000 spending, my favorite is to start by loading up on Chase Business cards. This below example assumes you have a Player 2 playing this game with you.
CIC P1: $900
CIU P1: $900
CIC P2: $900
CIU P2: $900
I would apply to these cards three times (with each player) in the following 12 months, waiting at least one quarter to do so. (Example Q1, Q3, and Q4 apps)
$10,800 cash back
In the addition to the above, I’d grab a Citi card (either Double Cash or Premier) to unlock the 8% play.
I’d sit tight and wait until one of the Amex cards (Gold or Platinum Personal or Biz) was back at an all time high Sign up Bonus and grab it then.
If I see one of those back at their all time high, I’ll make sure to post it on Substack.
Q4 is a fantastic time to join, because the Buying Groups have lots of Black Friday and holiday deals, so it’s the easiest quarter to generate manufactured spending. As always, if you have your own business that is significantly better!
Conclusion and Action Steps
I realize this sounds a bit overwhelming at first, but most people get over the learning curve after they spend a few weeks in the Slack Group and read the Substack articles. I provide all the spreadsheets you need to stay organized and on track.
While it sounds time consuming, once you get over the learning curve, it shouldn’t take more than a couple hours a week max. You could do 95%+ of this game on your phone during your lunch break at your W-2.
The Slack Group is a great place to ask any questions and get a quick response.
If interested in getting involved, join the Slack community by DMing me on Twitter with the email you used to sign up for Substack and make sure to read the “start here” post.
Additionally, make sure to check out the https://www.bowtiedbum.io/p/stop-paying-out-of-pocket-for-your to quickly pay for your membership.
I’ll answer any questions in the comments below, and look forward to helping you guys rob the banks!
Remember, Banks are Zeros.
Feel free to ask any questions below.
Disclaimer: None of this is to be deemed legal or financial advice of any kind.