Starbucks Money-Making Secret..

0:00Like a good coffee, Starbucks is there. Starbucks was able to get thousands of everyday people to loan them 1.7 billion dollars to do whatever they wanted with it. You know how they did [music] it? They offered them gift cards. And so when you buy a gift card, you essentially loan money to a business. That business can take that money, it can invest it, it can do other things with it in the meantime before you redeem it. And when you do buy a gift card, you're not even really giving that much money that they're going to have to spend on you. You're giving them that much money in gross profit that they'll spend later. Let's say a $100 gift card at Starbucks might only be $5 an actual cost for them. So they can immediately take that money and use it. They can even sit in a treasury and start making interest on your money. No matter what, if you're a business, offering gift cards is one of the smartest things you can, and that's why there's laws around them because they're so powerful.