One of the most overlooked ways to maximize your advertising efforts has to be the credit card used to pay for advertising.
Depending on which company you choose, you can see rewards in the form of cash back, points for travel, and some even include nice sign-up bonuses. Another added perk of using some of the cards we list below is that they tend to help with increasing your spending limits in your ad accounts much quicker than if you were not using them.
Now, who you decide to go with depends on a variety of factors. Are you looking to pay employees? Travel for free? Or, maybe you’re just looking to organize your finances? Whatever your goals may be, if you’re spending a nice chunk of change on advertising, whether it be Facebook, Google, or the like, it is definitely in your best interest to choose the card that is right for you.
Below we listed several of the cards we both use ourselves, and have considered using in the past. This is in no way financial advice. This is just simply something that we feel is worth looking into, and it is a decision that can help you take your business to the next level.
Credit Cards to Use if you Travel:
These cards come with some awesome benefits, and from what we’ve seen on the market, these two cards have the best travel perks around. Right now they’re offering 50,000-75,000 sign up bonus points, 3-5x points on pretty much all business expenses, and there is no annual fee for the first year. These cards also come with a ton of additional benefits like travel insurance, damage protection, priority flights and hotels, and much more.
Credit Card for Maximum Cashback:
Next up, and this for those folks who maybe do not have the need to travel, but are still looking for the maximum benefit, we would recommend the Plum Card from Amex. This card comes with a nice 1.5% cashback on all purchases and allows you to pay off the full balance each month, or carry it for 60 days interest-free.
- Chase Ink Business – 80,000 signing bonus, 3x points on all business expenses, low annual fee.
- Capital One Spark Cash – $500 cash bonus, 2x points on all expenses, low annual fee.
There are definitely perks to each one of the cards listed above, and as long as you’re taking advantage of one of them you’re well ahead of others who continue to use payments methods without the added perks. This is essentially free money, and all you need to do is fill out an application, and start using your new business card for your advertising and business expenses. Basically, what it all comes down to is figuring out which perk will be most beneficial to you and your business and giving it a go.
Choosing Between Travel & Cashback
Cashback is great if you don’t travel much, and while travel is deductible for business, the value you get with points (when used properly) is far better than the value of the cash back or the travel write off. For instance; you get 1.5% cashback with AMEX Plum. If you had 1-3x miles (depending on the card) used on international business/first class flights, you would end up getting just about 4-8% “cash back” or 4-8x the value of cash back.
Let’s say I spend 100,000 in advertising on Facebook…
- Plum: $1,500 cash back
- Gold Card Amex: 300,000 points
- Platinum Amex: 100,000 points
For the sake of argument, let’s go on the low end and just use the 100,000 points as an example. You can transfer those 100k points to Virgin Atlantic for a one-way ticket from US>Europe and it will only cost you about 80,000 miles give or take. That ticket if you purchase it is about $8,000. Even after tax deductions, it comes out to a net cost of $4,000 to you that could have gone in your pocket assuming a 50% tax rate which is high. Using the points though thats $8,000 value you get instead of the $1,500 cash back. Almost 8x! 🙂
Obviously, if you dont travel internationally much then you won’t get the benefit of this. But, for people like me who travel a LOT, the points come out to be a WAY better deal for international travel.
The bottom line, these credit card companies make it easy for you to earn points, redeem your rewards, and make necessary business purchases. This one small decision can add a tremendous amount of value to both yourself and your business alike and we highly recommend you take a look at your options and start reaping the rewards today!
Pro Tip: To increase your credit card limit quickly, max it out, and pay it off as fast as you can multiple times a month. This is seen as a favorable practice for financial institutions and they will reward you for it relatively quickly.