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uTango (sounds alot like uPromise :) has just launched a coalition rewards program where singles, engaged couples and newlyweds can earn points for their online purchases with the eventual goal of cashing out. | |
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... for get this ... $2500 to $1,000,000 ten to thirty years in the future. The way it purports to work is that couples earn six "tango dollars" for every one dollar they spend online at participating merchants. If the couples spend a minimum of $5000, $10,000 or $20,000 per year at these merchants they can earn $2500, $5000 or $10000 after ten years or $250,000, $500,000 or $1,000,000 after thirty years. Let's dig in and see if the math makes sense. | ||
If a couple spent $20,000 per year and earned a 10% kick back (high, but not insane, by today's affiliate marketing standards) and then invested that money and earned 10% (a good but not great return) a year they would earn $361,000 at most over 30 years. And this is using the very generous assumption that the couple spends their yearly $20,000 on Jan 1 and earns interest on the full kickback for the full year. So how are these guys able to offer $1,000,000.
Well maybe they are expecting a higher yearly interest rate ... but just how high to get to one 1 million. The answer is 15.1 %. If they can generate 15% returns year over year for 30 years, then more power to them.
They are also counting on breakage - namely that you won't remain eligible for the program by staying married (I'll make fun of this later) or that you won't consistently meet your spend threshold. For example you might spend $20,000 per year for 16 years and then miss on the 17th year.
So now let's get around to discussing the rather odd program rules. It is only available to singles, engaged couples or couple that have been married for less than three years. And, you have to remain married in order to earn your cash-out 10, 20 or 30 years later. Is this a right-wing conspiracy? I'm surprised they haven;t attached a birth qualification and stipulated that you haven't any abortions along the way. And what about gay and lesbian couples who belong to a legal civil union - do they qualify.
My take aways are two fold ...
1) you have to stretch the math almost to the point of breaking for it to make sense
and
2) these guys are weirdos with their marriage requirement (maybe it's a nascent marriage cult)
... so therefore I would recommend using ebates, upromise or some other coalition rewards program and investing the money yourself.