Transcription
This is a private jet that my credit card company gave me for free. Well, at least that's what they brainwash you to believe. So, I pay for this with my credit card. I get the jet for free, right?
I'm on a mission to expose how credit card companies brainwash you to spend money that you never should have. And today, I'll be showing you the five tactics that they use. Starting with tactic number one, the comfort trap.
We're at the airport with my undercover spy glasses headed to the Centurion Lounge, a private lounge strictly reserved for Amex card holders. But to get inside, I have to make it past the gatekeeper at the front desk.
"What card do you need in order to get access to this lounge?"
">> Yeah, it's just just you."
"There are over 1500 of these lounges around the world. And the free access seems like a nice perk on the surface, but what they're doing here is a bit more sneaky than you might expect."
">> Probably tea soap, and some other stuff,"
">> luary stuff."
">> Also, you get to like drink like different champag."
This guy is coercing me with bits of free luxury to make up for the thousands of dollars in annual card fees that I pay to access this lounge. And what about with the platinum?
">> No alakart."
">> Okay. Just with everybody else, all the plebs. Okay."
They don't just hijack your spending. They hijack your environment by engineering comfort in places that you are most stressed. Take for instance the airport. It is very chaotic. There's lines. People are usually highly stressed. So what do these credit card companies do? They provide you a port in the store. They are selling you luxury and all the biggest credit card companies take full advantage of this.
But this is just the start of it. I enter the lounge and honestly it feels like I've just escaped the madness of the airport. I load up on the free buffet, grab some of the finest sparkling water, and check my flight time to LA, which leaves in 52 minutes. But while all of this looks nice on the surface, this is just the tip of the iceberg that keeps the masses poor.
So, here's how you can specifically apply this to your own business. You want to absorb all of the hard things that for your customer so that when they're working with you, it just feels like life on easy mode. And we call these things comfort modes, cheat sheets, swipe files, done for you word for word scripts that they can literally just pick up and plug directly into their business to get them that benefit a whole lot quicker and without them having to do any of the heavy lifting.
Okay, enough theory. I figured a video all about credit cards called for some big spending. So, I'm off to LA to expose the exact tactics that these brands use in the wild and rack up enough points to get on a private jet.
12 hours later, I hop off the plane. And thanks to my card, I'm greeted by a private driver who takes me across the tarmac and straight to a ridiculous hidden terminal with Lamborghinis parked outside.
">> Oh, wow. They gave you a great lunch set."
">> Oh, right. You like the swag."
And inside I had to take a second to aura farm because this place was baller. A huge reason why this all works is because it taps directly into people's need for status. And the first step with engineering status is to make something feel different. And the best way to make something feel different is by having a hero mechanism. Something that is unique that separates your product or service and the way that it enables the benefit to your customers. And I have created a software that will literally create you a hero mechanism in the click of a button and it's called Kong. You can get a free account on the link in the description below.
I get to my hotel to check in and I need to see if I can leverage my card status to get a free upgrade to a penthouse suite.
"Do you guys have any perks with the AX?"
">> We do work with American Express. If you go through them directly, you can get really cool food and beverage credits and 400 p.m. checkout and things like that. Okay,"
Turns out the only way to really get these free upgrades is through their highest tier of cards. And it's extremely unlikely that you'll actually get the special treatment unless you're invited to their private program and pay upwards of $5,000 per year and a $10,000 initiation fee just to get access to the card.
Which brings us to tactic number two, the tier trap. Tears make people feel like there is always another level to unlock. And it keeps your customers on the focus of ascending up in value. And the reason that it works is because it moves the decision from being a binary one, yes or no, to which card should I choose? And people will naturally anchor themselves in the middle. And when you do this, it just increases your average order value. You always want to have three packages that it is that you send. Not only do you get the bump in day one cash, it also increases the lifetime value of a client. And you will find that by having a high tier package, a middle tier package, and a low tier package. If you sell to the middle, by default, 20% of the people that you sell to will take your higher end package. When you get into some kind of price negotiation, then you've always got a lower package to default to, and it just doesn't leave you pulling your pants down on price. and completely eroding your profit margins.
And these credit card companies have figured out something that is so much more powerful than points.
Which brings us to tactic number three, status engineering. And to put this one to the test, I'm heading into the head office of one of the most exclusive gyms in LA, Equinox.
"Hey, you have been a member of those in the past."
">> No."
This place is known to be crawling with celebrities like the Kardashians and even The Rock has been spotted here. And would you look at that? Listed as a card holder perk is a $300 credit to this very gym. Let's see what the fuss is all about. And more importantly, if I can actually get inside.
"I saw that like there you guys are going to tie in with AX."
">> Yes."
">> Okay. And am I able to go to the current one and do a day pass and see if I like it and then come and do all of that?"
">> Um, technically yes and no."
">> What?"
">> Like surely I'm an AMX member. I get like some kind of data cuz it says on there I get like some $300 credit or something."
">> So, it's just a credit in the drawing."
">> Okay. Right."
Turns out the $300 credit is typically only applied to a full 12-month membership which will run you just over $5,000.
"Am I able to go in and do a day pass?"
">> Technically, we don't allow day passes right now."
">> Yeah."
">> When did you want to go?"
">> Like tomorrow or something? I mean"
">> um just for yourself."
">> Yeah. For the both of us."
">> Both of you. Um, yeah, probably."
Human beings are status-driven creatures, and these credit card companies know that if they can tap into your identity, then they can control your behavior without you even realizing it. From the unboxing experience to you requesting an invitation to be a member and actually have the privilege to get one of these credit cards. Even the cards themselves are metal so that when you touch it and it falls on the table, you hear that clink which associates quality and luxury with the card itself. And if that wasn't enough, recently Amex has removed the credit card number from the front of the card so that people can literally flex on social media and show their credit card without giving away their credit card number. And this has become an entire wormhole on Tik Tok. There is a corner of the internet that is literally just full of Gen Z people flexing their cards.
">> Oops, did I drop that?"
Their entire ecosystem is wrapped in luxury. That's why they give away things that are always perceived as luxurious. They are not utility. For instance, their gym membership. They're not just partnering with any old gym. No, they partner with the black label, the most expensive gym that there is, Equinox.
I head inside and scan my one-time pass to make it past the front desk. I hit the treadmill before heading over to the weights for a diabolical pump. I torture my cameraman's forearms for a bit before finishing off with a couple of circus tricks. The gym itself was all right, but it's clear from the little things like the eucalyptus towels to the steam room, the sauna. These guys are relying heavy on status and exclusivity to make this place work.
">> I would be pissed if I paid like $400 US. I I think it's very mid. I've been to a few gyms out here. Like my hotel gym is infinitely better than the Equinox. That isn't nowhere near compared to my Lux gym back in Australia. $300 perk for Equinox for running it up on the AX. That is definitely not a perk to write home about. Like, don't get me wrong, it's good to be able to hit it if you're on holiday and you don't have access to a gym, but you can't even do that anyway because this is $300 off a membership. I I definitely would not sign up."
So, they are always moving you up that association because they want to make sure that the association that you have with their brand is a positive one and they always want to be going up and not be going down with those brand associations.
So, here's how to apply this to your business. Every single purchase either elevates somebody's status or not buying it lowers their status. And that is exactly what it is that you want to sell. You don't want to sell your products. You do not want to sell your services. You want to sell the status that buying it unlocks. When you start doing this is when you start playing chess while everyone else is playing checkers.
These credit card companies, they don't just sell luxury. They sell access. They sell you things that you can't actually buy with money. The appeal is simple. By getting this card, you get to access things that normal people can't.
Which brings us to tactic number four, illusion of access. Skipping the line or getting access to a soldout restaurant activates the dominant circuitry in the brain. But even when it comes time to redeeming these perks, it doesn't always happen the way that it's been advertised. For instance, I was trying to get a table at last minute through No, and I called their phone concier.
">> on your card. We actually no longer serve lifestyle over the phone for dining reservations, but as a oneoff, I can certainly try and help you. I just wanted to let you know that it's not a normal um process though, but I can certainly try."
Anyway, she put me on hold, tried to get me a table, and she was like, I can get you a table in 6 minutes. And I'm like, I'm an hour away. It's not going to really help. Is there any other tables you can get? Is there any other table in the restaurant, please?
">> Sorry for the wait, but can I only do 3:45 p.m. which is very scary."
">> Yeah, I'm not going to be able to time travel there that quick now. I'm probably 45 minutes out."
"Let me head there myself and see if I, the internet daddy, can get myself a table and if there are any available."
">> Let me cook."
">> I'm good. Um I called up before. I don't have a reservation."
">> Yeah. Would it be possible to get a pass with food?"
">> Yeah. Right now that we do have available um inside available"
And what do you know? I managed to get a table.
">> Thank you."
">> Round two. Mr. Wonderful. Thank you."
So even when they are advertising that this is a luxury, this is a benefit that I get from being a member of this prestigious card, I don't even get to unlock those perks and enjoy them. But even when the concurge fails, the belief around maybe next time I'll be able to unlock this perk. It keeps you loyal.
And the way that you can apply this to your business is to provide access to the clients that work with you. You just want to think about what are some perks? What are some things that me as the business owner, as an operator within this niche has access to that I can grant that access to my customers or clients that they can't actually access without those connections. And then you want to use this access to create miracle moments in your business. Whether it's a certain person or a contact that you introduce them to or some kind of press or access to something that they can't conventionally get access to. These miracle moments, they engineer years of loyalty for a client.
I grab the bill and ding the credit card once again, racking up even more points, inching us closer to the private jet. Now down to their mac daddy of tactics. This is their master plan and that is tactic number five, status addiction. They have fundamentally changed the way that you live and the way that you perceive yourself because you are now keeping up with the Joneses. At every single turn, they are getting you to upgrade your lifestyle from the way that you get to airports to the way that you be in the lounge to the type of food that it is that you eat. They are literally changing your behavior and your status. You are simply trying to get all of these points to live this certain lifestyle and you get wrapped up in a frenzy of acrewing all of these additional balances, even paying interest on those balances to unlock these small and mere perks.
So, here's how you can use these principles in an ethical way to sell more of your products and services. Every single thing that somebody buys creates an association. And so what you want to do is you want to associate your brand with luxurious experiences. Have masterminds and getaways in exotic locations. Partner with brands, whether it's massage clinics, hotels, or the finest restaurants, and offer that as perks for people doing business with you. And send them personalized awards for when they hit certain milestones. Whether it's a certain amount of time that they spent with you or a financial achievement. take that moment and acknowledge that and send them a milestone, an award and a plaque that they can put out there and broadcast and they can feel a certain way about it and they intentionally just automatically increase your spending limits as a psychological target.
Okay, now that I can spend 150k per month, let me run up the credit card and acrew these points. And nowhere could this be seen more in black and white than using your points to acrew enough points to justify getting a private jet. I've been swiping my credit card all week in LA. Five-star hotels, ridiculous restaurants, places that feel expensive just walking through the door. And after all of that, I'm still nowhere near having enough points to book a private jet. I'd need to spend another $2,445,000 of real cash. Credit cards sell you this fantasy that everyday spending turns into insane rewards. Flights, upgrades, luxury. But when you do the math, it's kind of a joke. It's a perfectly engineered illusion. Spend money feel smart. Chase points never quite get there.
Just as I'm thinking, "Yeah, this is and I'm ready to fly back to Australia." I remember something. I don't just use my credit card for dinners and hotels. I use it for my agency expenses on a different account. So, I check it and what I see immediately floods my brain with dopamine. Over 29 million points just sitting there, unused, forgotten. Years of spending I never paid attention to. So, I do what any sane person would do. I immediately book a private jet to New York with points and head straight to the airport. Let's go.
All righty. So, this is the jet. First things first, none of that cheap plastic water bottles. We got the Saratoga baby in glass. No microlastics. Oh, yeah. We need to We need to whip out the laptop on this thing. Get some in the air on the grind shots. Do you see the golden sink in here? Flying freaking Saudi Arabian air. So full on situation here where you can run a desk. Look at this. Bang. We know you're handling business. You're the internet daddy in the sky. We still handle business. Snacks. Any protein bars in here? No. What do we got here? Harios. Now this is a very unique feature. It's a toilet without a door. Privacy is not a thing in the air. You're not sharing this with any other people, baby. So, you sit on in here. First things first, we've got a little golden tub here. Does the water run out of this thing? Oh my god. No water. All right. We don't We cannot wash our hands in here. But then I not. Look at this. There is a toilet that is under here. Please tell me that this door closes. Oh, what do we got here? You can tell I haven't been on this jet before. Push. Oh, there we go. This can also double as a bed, right? You can just get your chill on over here in case you need to after doing these intense masterminds. You can just sit back, chill, relax. The whole thing is we fly lower than commercial here, right? So, you get to even see better view. You're not above the clouds, you're below them. See small these small details. Look at it. Look out the window though. Look how high up we are.
So, we just touched down on a flight completely free of charge. All thanks to credit card points. And if you like this video, you're going to absolutely love this one that I did on Rolex. Like, subscribe, and I'll see you in the next one.