A Federal Reserve survey from 2014 found out that nearly half of the respondents wouldn’t be able to cover an emergency expense as high as $400. When considering potential sources to cover such an expense, about 2 percent of the respondents stated they would opt for a payday loan. This leads to a very sizeable potential market and one that has the potential to expand even more, but keep in mind several states have made Payday loans illegal.
To effectively secure a place in this crowded market, anyone advertising payday loans online might consider building a reliable partnership with a payday loans affiliate program, which can turn out into multiple financial benefits. As part of this partnership, the lead generator (the affiliate) gathers the required information from the client and forwards it to the lead aggregator for a given financial reward. Using this information, the lead aggregator can find a creditor that would offer the money to the client.
There are multiple advantages to such a system. The key one is that advertisers do not have to possess the financial resources in order to make money out of payday loans. They can just sell the information to aggregators and the clients would still receive the services they sought for. In addition, making the contract with a large loan aggregator as opposed to a small creditor might result in higher rates of accepted credits, especially considering that aggregators may be better at finding loans for clients with poor credit history (due to the reliance on a bidding system resembling an auction).
Unique Advantages That Characterize A Generous Payday Loan Affiliate Network
Some unique advantages offered by the best affiliate programs are as follows:
- an affiliate receives a commission for every generated lead, even if the client is ultimately denied any loan or the process is canceled (of course, the financial reward for leads with positive and negative outcomes may vary);
- the affiliate may receive a commission each time the original client returns for a new loan. Many lead aggregators tend to conceal this income from advertisers and ultimately profit from this alone, while others choose to share their profits. This is also a wise way to motivate lead generators to focus not only on the quantity but also on the quality of borrowers (judged by their ability to return the credit);
- one obvious advantage that is of primary importance to any lead generator is the payout rate – generous aggregators may offer several hundred dollars for a single lead, depending on the sale. This is another mechanism that ensures that lead generators focus on higher profit niches;
- yet another important aspect is the possibility to grow within this partnership by forming a network of referral affiliates that you manage to bring along. Generous aggregators may share with lead generators as much as 5% or more of the profit generated by the referred affiliates
To conclude, the partnership formed can prove extremely beneficial to both sides.