I have visited them in their Orlando offices and met with the owner and sales staff, I have also toured their operation. I saw both ends of the operation in action, folks that dealt with owners like me, and the reservations staff.
The owner is a former Wyndham salesman and is an owner himself. He started by renting his own points and grew into one of the largest operations of its kind.
The op has it pretty much right ..at least thats the way the service was pitched to me.. I would pay them an initial fee, turn over my account to them, and they would pay the mf from that point forward. They would make reservations in the account and rent them out, using the income to pay my mf and for their profit. The initial fee was designed to cover my mf until they "ramped up " operations in my account...ie until the income from the rentals was enough to cover mf. If I wanted to use some of my points myself, no problem, they would rent them back to me for the cost of the mf. This would be my profit as I could continue my rental operation out of the account too.
Their profit comes from the spread between the cost of mf, and the price of the rental, and could be considerable as they play the cancel and rebook and upgrade game to the max.
I had 2 problems with the way they have structured their plan. 1) the initial deposit; From their standpoint, I understand the need for this completely. From the first of our agreement they would owe all my mf, but not have collected on a single reservation. It would take them a while to make enough reservations and collect enough income to pay my fees. especially if they were making the high value reservations 10-13 months in advance...it might be a year before things were in balance and they would be collecting enough every month to cover the fees (and profit) From my standpoint it wouldnt work however. I need a steady cash flow every month, to cover my considerable mf. I just cant pay a year in advance, which is what they wanted. 2) there was no profit potential for me..I wanted at least a little more than mf to make this worthwhile.
So we didnt do business, but I certainly wouldnt recommend against them, The way they work might be perfect for someone else....And as BigRob said, there are other services out there that work better for me.