Payday loan leads is one of the staple verticals in the lead generation industry. Whether you’re generating them yourself or aggregating leads and slicing off a profit before selling, there is little doubt about the demand for both payday loans and payday loan leads. When operating within a subprime vertical there are certainly many benefits for lead gen companies, but there are also a few challenges as well.
The Good Things About Payday Loan Leads
Hugely profitable: Payday loan leads are some of the most profitable leads in the industry. Additionally, because payday leads are bought and sold in a real-time waterfall method, the seller can always guarantee selling each lead for its maximum value.
High Volume: Payday leads are also a high volume vertical. Although the demand has dipped slightly as the U.S. economy has crawled out of the recession, payday loans are still requested at an extremely high rate.
Repeat Leads: The very nature of any subprime vertical lends itself to repeat lead submissions. If you're roofing your house, you probably only look for a quote once. However, if you're looking for a payday loan now, you may be looking for another down the road. Because of this, many payday lead generators get returning leads and have more success remarketing to aged leads.
The Not So Good
Legal Restrictions: Payday lending is prohibited or restricted in over a dozen U.S. states. Because of this, payday lead generators need to stay on top of the regulations in order to provide quality service and to avoid ad spend on unqualified candidates.
Extensive Application Process: As with any financial lending service, payday loan applications require extensive information from the lead itself. This includes everything from personal finance information to social security number. Because of the extensive and personal application process, achieving high conversion rates on payday forms is certainly a challenge.
Sophisticated Buying and Selling Process: As touched on above, payday loan leads are bought and sold in real-time using a tiered or waterfall system. These leads attempt to sell at the highest tier for each potential buyer. If that offer is refused, the lead then attempts to sell at the next highest tier and so on until the lead is finally sold. While this is a slightly complicated process if tackled by a lead generation company alone, lead distribution software like boberdoo.com can handle this entire process automatically.