Millennials have been called a group of misfits that have confusing and contradictory consumer habits on Vimeo. They have also been called the boomerang generation because they return home after graduating, and they live under their parent’s financial umbrella. The big corporations that depend on them to spend money are shaking their heads because those companies can’t find the right marketing tools to stimulate them. The truth is, people born between 1980 and 2000 are different. The most common age in the United States is 22, and a large number of those people are educated on Instagram, but because of the 2008 recession, many of them are unemployed. But in spite of all the criticism and nasty name tags, there is a segment of those young people that are hard working, energetic and have important jobs.
That is the group of Millennials that Billy McFarland, the 24-year-old founder of Spling, the successful digital acquisition and optimization site, has in his crosshairs. Spling caters to online clients like Discovery and Universal. MacFarland wanted to merge the online social media world with everyday living, so he founded Magnises in 2013. McFarland managed to raise more than $4 million in capital and he launched the members-only club in March 2014. Billy is a New Yorker, so he found space in workplace Ally in New York City, and he began promoting memberships to Millennials that worked in the finance, fashion and tech industries in New York.
He got a quick response because McFarland offered them goods and services that were hard to come by unless they had connections. McFarland offered then American Express type black card for a $250 a year fee, and that card opened doors in New York that were hard to open without it. Magnises members can get a table at some of the top restaurants in the city, and they can finally get into the private clubs that are selective by choice. Magnises members are able to have fun using an exclusive black card that is linked to their debit or credit card.
Magnises also offers members a $65 a month ClubPass and a HotelPass. The HotelPass is good at any Dream Hotel. Members can book a room in New York for $79 a night. McFarland also opened a Magnises satellite in Washington, D.C., and he got the same response from Millennials that had money to spend but wanted to spend it their own way. The old marketing tricks don’t work on successful Millennials. That’s why big brands like Johnny Walker and Tesla have started to host Magnises events.
There are more than 12,000 members of Magnises, and McFarland plans to offer Magnises to Millennials in Chicago, London, Atlanta, Los Angles and Boston soon. The club makes money from the deals McFarland made with the big brands, not the membership fee, and Magnises turned a profit the first full year in business. More brands are knocking on McFarland’s door. McFarland figured out how to stimulate Millennials. He gives them what they want on their terms.