McFarland’s source of inspiration
McFarland was inspired by the desire to own an American Express Centurion card. He came across this card while having dinner with his friends. This desire prompted him to develop a card that pays the bills and grants one access to exclusive clubs and restaurants.
According to The Guardian, after that dinner with his buddies, Billy McFarland set out to find a way to implant a magnetic strip on a metal card. In an interview with CNBC, McFarland revealed that his company connects a credit card to the Magnises card through data transfers. When the transfer is complete, the Magnises black card is used as a formal platinum card. McFarland’s company also set up a mobile app. This app serves as a guide to exclusive events at discounted rates. Since it was launched, Magnises has attracted over 10,000 members in Washington D.C and New York City. McFarland’s goal is to conquer other cities on the West Coast.
Magnises’ membership and profitability
According to McFarland, Magnises membership is by referral. Before a person is considered a member, he/ she is invited to a Magnises event and is vetted by the other millennials. Magnises members get to decide if a person is social and fit for the club membership. After the vetting process is over, a prospective member is required to pay a registration fee of $250.
A Magnises card is not prone to legal risks since all the transactions go through the bank. Additionally, Magnises is not a credit card but a brand that networks people. McFarland further elaborated that his startup generates revenue through membership, organizing events, and the Magnises Club, and brand partnerships.
Magnises spends at least $70 on each member annually. Magnises partners include Samsung, Tesla, and Virgin. These partners contribute to the Magnises’ revenue by paying a licensing fee. Within the past year, this startup has raised a record $3 million in revenue.