The Rise and Fall of The Magnises Card

What Happened to the Magnises Card aka The Millenial Black Card

The Magnises Card, considered the Millennials Black Card with a $250 a year annual fee, went up in flames because of the Fyre Festival Disaster. But before we go deep into how the card unraveled, it’s probably best we explain everything that lead up to the end of Billy McFarland’s business and what the concept behind a movement that gained 40,000 active users was and why it was so intriguing in the first place.

The Beginning of The Magnises Card

The starting of the Magnises Card was actually made out of a bit of both desperation and inspiration! It’s well known how exclusive the AMEX Black Card is, being an invitation-only Charge Card American Express offers members for hitting certain spends estimated to be $250,000 annually, and for Billy McFarland and his friends this card seemed to be a champagne dream but with draft beer pockets an alternative needed to be found.

After searching for suppliers McFarland managed to find a provider in China that could embed magnetic strips from your creditor into the Magnises Card- and the Magnises Card was born.
To make this clear this wasn’t truly even a credit card at all, it was more akin to a skin for a magnetic credit strip; and altogether just another odd start to something meant to be a “poor-man’s AMEX Platinum/Centurion Card.”

After the first batch of cards was completed McFarland began marketing this service to others, very similarly to AMEX Platinum, with an invite-only membership that included having to show up at the Magnises Townhouse. The Magnises Townhouse was actually a private residency McFarland rented and used for business and before he relocated his business to an office in Chelsea, a lawsuit was opened by his landlord for the cost of damages of up to $100,000 for parties thrown in the townhouse and the violations caused by McFarland for using the residence as a headquarters to conduct business out of.

The Benefits of The Card

The benefits of the Card were made to mimic those by the Black Card, be these lofty benefits are ultimately what ended up causing the cannibalization of the entire business. The Magnises card claimed that it would offer Discounts to certain events, dinners, or stores– much how AMEX offers.

Magnises also set up their own Concierges service that would help members get tickets to events and festivals, although the service lacked in comparison to what American Express has to offer. The reason Magnises Concierges service just couldn’t compete with AMEX is because of capital. Whenever there’s events, plays, etc most of the time American Express actually has deals with the major entertainment providers and have tickets exclusively reserved for cardholders– put simply there are times where tickets are sold out to the general public, but still available to AMEX Platinum Black Card Holders because AMEX has a pool of exclusive tickets reserved for them.

That said the card still did deliver some very exciting benefits, and as much as the card was written in the history books as one of the worst cards at all times, it was actually their eagerness to do something great that caused their collapse.

VIP Events were offered to cardholders and notable events were Johnny Walker Tastings, Tesla Test Drives, Magnises Fashion Shows that brought in Richard Fortus from Guns N’ Roses, an anniversary in Ibiza with Ace Hood and Juelz Santana, and a Brooklyn party with the appearance from the rapper Rick Ross, just to name a few of the perks. The American rapper Ja Rule was even heavily involved with the business and allegedly was a major contributor to the design of these events.

The Controversy

In November of 2016 Magnises released a statement to the press in Portugal that they had 100,000 card users, just 2 months after a press release claimed the card had 30,000 members. During this time complaints started piling up about Magnises with members claiming failed refunds and the Better Business Bureau grading their business an F.

But the movement had gained more momentum than ever and McFarland was about to set a lofty goal that would cause his downfall in what would be one of the most shocking experiences that would start press releases around the world to cover the story.

The Disaster

In April of 2017 the business came crashing down with a massive $100 million lawsuit that was soon to follow. But how did this happen?

Well, it became very hard for people to make sense of what they endured when Fyre Media LLC (run by McFarland) promised one thing and delivered something totally different. Taking place in the Bahamian island of Great Exuma, Fyre Festival was sold as the festival that was “on the brink of your wildest dreams/ virtually impossible”. The sales pitch showed models in plethora, with the promise of luxury accommodations, gourmet food, and the hottest music acts over a two week period.

What happened was, unfortunately, the exact opposite; people spent thousands of dollars just on the plane ticket alone to reach an island that was filled with disaster relief tents for shelter, and styrofoam boxes with sandwiches, while music talents such as Blink 182 canceled because of poor production and orchestration on Fyres end.

In some of the last days of Magnises, Billy McFarland attempted to sell his business and came clean that he only had 4,000 active users and 40,000 members at the peak of his business.

Rumor has it that Billy McFarland is still looking to put together a new business along the same lines and may actually release a new card, but compared to cards like AMEX Platinum with their Concierge service and Centurion Lounges, Select card, and Founders Card with 3 months of free travel on Jetsmarter, competition looks fierce as it has always been.

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