How Does Bilt Make Money: A Complete Analysis

Bilt Rewards is a loyalty program designed to reward renters for paying rent.

Bilt makes money through many sources, including interchange fees from its credit card, referral fees from its real estate partners, merch sales, and investments from other companies.

This first-of-its-kind loyalty program for renters was launched in 2021 by Ankur Jain. Since then, it has taken the credit card world by storm for offering rewards on something never rewarded before, rent payments.

But how does Bilt make money off this seemingly generous setup? This post will provide a revenue breakdown of Bilt Rewards’ business model and how exactly their rewards program works.

Key Takeaways

• Bilt Rewards makes money through credit card transaction fees, referral fees, and strategic investments.
• The Bilt Mastercard and real estate partnerships are major sources of revenue for the company.
• Bilt also offers luxury rental properties, data insights and analytics, and technology and platform services to generate revenue.

What Does Bilt Do?

Bilt Rewards targets renters with a unique credit card and rewards program.

You can use the Bilt Mastercard for everyday purchases and earn points, but the real perk is the ability to pay your rent directly through the platform and still rack up points.

This eliminates the need for a separate transaction for rent which has always been a common pain point for renters who can’t typically earn rewards on their monthly housing cost.

How Do Bilt Rewards Work?

Using Bilt is straightforward.

Once you’re approved for the Bilt Mastercard Credit Card, you can link your bank account and your rental property’s payment portal within the Bilt app.

Then, you can choose to pay your rent using your available credit line or debit funds directly from your bank account – all while earning points towards travel, gift cards, or even a contribution to your down payment on a future home.

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How Does Bilt Make Money?

Bilt Rewards earns money through multiple income streams, including credit card fees, referral fees from real estate partners, merch named Bilt Collection, and investments.

Let’s get through these sources one by one…

1. Transaction Fees

One of the primary sources of revenue for Bilt Rewards is transaction fees charged to landlords and property management companies for processing rent payments through the platform.

While users may enjoy the convenience of credit card rewards on their rent payments, landlords pay a small fee to Bilt Rewards for facilitating these transactions. This model helps Bilt profit from rent payments and generate steady revenue streams for the platform.

2. Points Earning Structure on Bilt Credit Card

Bilt understands that rent payments alone might not be enough to sustain its business model.

They incentivize users to use their Bilt Mastercard for everyday transactions, from dining to travel and other purchases with Bilt Mastercard.

The exact amount of interchange fees that Bilt earns from each transaction is not publicly disclosed. However, according to Forbes, Bilt aims to make money from interchange fees each time a user swipes the card for non-rent expenses. 

This suggests that Bilt may earn a higher interchange fee for non-rent transactions than for rent transactions.

The Bilt Mastercard benefits users by giving them points on different purchases. These points can be redeemed for cashback rewards, travel, and other rewards.

Here’s a breakdown of how users can earn Bilt Rewards points:

Bilt points redemption options also offer a sign-up bonus of 50,000 points after spending $3,000 in the first 90 days.

This points system expands their reach beyond just the rent rewards program and generates additional interchange fee income.

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3. Interest on Outstanding Balances

Similar to traditional credit cards, Bilt earns interest income if you carry a balance on your Bilt Mastercard.

However, it’s important to remember that carrying a balance can be financially disadvantageous due to the typically high interest rates associated with credit cards. 

4. Property Management Agreements

Bilt has signed agreements with some of the largest property management companies in the United States, such as Greystar and Alliance Residential.

These agreements allow Bilt to offer its services to renters in the properties managed by these companies. In return, Bilt charges a fee or a percentage of the rent paid by the tenant.

5. Rent Payment Processing

Bilt processes rent payments for its users and charges a fee for this service. By processing rent payments, Bilt is able to earn consistent revenue from transaction fees.

6. Bilt Collection (Bilt Merch)

Bilt Rewards offers its members an exclusive online store in the form of art and merchandise items on the Bilt Collection. Members use their points to purchase items, and Bilt Rewards earns revenue from the sale of these items.

By providing a curated selection of art and merchandise, Bilt Rewards offers its members a more personalized and engaging experience.

The Bilt Collection also serves as a way for Bilt Rewards to generate additional revenue and grow its business.

7. Equity Stakes & Venture Capital

Bilt has recently raised a $200M equity investment from General Catalyst that has taken its valuation to more than doubled and now stands at $3.1B.

The company has been attracting funding since 2022 from leading venture capital firms and investors including General Catalyst, Greystar Real Estate Partners, Berkshire Residential, and Willow Bridge Property Company.

These investments have allowed Bilt to expand its services and offerings, as well as to tap into the expertise and resources of these established players.

8. Affiliate Marketing

Bilt Rewards also generates revenue through affiliate marketing.

Bilt partners with various companies and influencers to promote their services. Users refer more users to Bilt and in exchange earn a commission on any resulting sales.

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9. Partnerships and Alliances

Bilt Rewards has formed partnerships with some of the country’s biggest real estate companies, including Greystar, Brookfield Properties, and Lincoln Property Company.

When you use the Bilt app to find a new apartment or utilize services offered by Bilt’s partners, Bilt might receive a referral fee.

This creates a win-win scenario for both parties: Bilt gains new users, and their partners potentially attract new renters.

The good thing is that Bilt carefully selects its partners to ensure that they align with their brand and values. They prioritize partnerships that provide value to their users and enhance their overall experience.

10. Data Insights and Analytics

Bilt collects data on users’ rent payment history and financial behavior.

Bilt’s privacy policy suggests that they might collect and share some data, but give you control over how it’s used for marketing purposes.

This data is valuable to financial institutions and credit bureaus who may be interested in purchasing this information for research or marketing purposes.

Bilt also uses data analytics to identify trends and patterns in user spending behavior.

For example, Bilt can notice that a significant number of users are spending money on dining out. Bilt can then partner with restaurants to offer cashback rewards to users who dine at these venues.

3 Reasons that Made Bilt a Success

1. Identify a Specific Pain Point and Solve It

Bilt Rewards’ founder, Ankur Jain, recognized that renters were missing out on earning credit and rewards points, unlike homeowners who could earn points through mortgage payments. He created Bilt Rewards to address this specific pain point, allowing renters to earn points on rent payments and redeem them for travel and other rewards. By identifying and solving a specific problem, Bilt Rewards differentiated itself and attracted a loyal user base.

2. Partner with Established Industries to Drive Growth

Bilt Rewards partnered with leading property management companies and landlords to offer its rewards program to renters. By partnering with established industries, Bilt Rewards expanded its reach and gained credibility, making it easier to acquire new users and drive growth.

3. Make Financial Services Accessible and User-Friendly

Bilt Rewards made earning and redeeming rewards points simple and intuitive, using a mobile app and clear rewards structure. By making financial services accessible and user-friendly, Bilt Rewards appealed to a broader audience and increased engagement and retention.

The Verdict: Is Bilt’s Business Model Sustainable?

While Bilt has raised significant funding and certainly has a unique value proposition, there is still some doubt about its long-term viability.

Their ability to balance user rewards with generating enough income through interchange fees, referral programs, Bilt Collection, and investments from other companies is crucial to their future success.

Nevertheless, Bilt’s innovative approach to rewarding renters with points on rent payments has radically changed the credit card industry and offered an exciting alternative to this previously untapped market.

FAQs About Bilt Rewards

What is Bilt Rewards?

Bilt Rewards is a program designed specifically for renters. It offers a credit card that allows you to earn points on your monthly rent payments. You can redeem these points for various rewards, including travel, paying rent, fitness memberships, and more.

Is Bilt Rewards worth it?

For renters, Bilt Rewards can be a valuable tool. You earn points on a recurring expense (rent) that typically wouldn’t earn rewards with other cards. The Bilt Mastercard has no annual fee and offers additional points for dining and travel. However, there have been reports of fraudulent charges, so be sure to monitor your account closely.

How Does Bilt Make Money?

Bilt generates revenue through interchange fees, a small percentage charged to merchants whenever you use your Bilt card. They may also earn interest on outstanding balances carried by cardholders. Additionally, Bilt partners with property management companies, offering them a platform to connect with renters and potentially earning referral fees in the process.

How To Use Bilt Points?

Bilt points offer a variety of redemption options. You can use them towards travel expenses like flights and hotels, pay your rent directly, and other experiences. You can manage your points and explore redemption options directly through the Bilt app or website.