Payday Lead Distribution
Payday lead distribution typically occurs in a waterfall structure. However, new earnings per lead (EPL) calculations can improve this process. See how.
Payday Leads Use Case
Waterfall Distribution
Payday leads are distributed via waterfall distribution. When a lead enters your lead system, it attempts to sell to the highest-priced matching filter set. However, this lead may be rejected based on a lookup performed into a payday loan database. If rejected, the lead flows down the waterfall to the next highest priced filter set. Buyers agree to multiple pricing tiers, meaning if a buyer rejects a lead at their highest tier, they may still accept and purchase the same lead at a lower tier.
The Database Lookup Problem
As a lead flows down the waterfall, the payday loan database is checked for each filter set attempted. Just like repeatedly checking your credit score can lower your credit rating, these checks can affect the lead's status within the payday loan database, making the lead less valuable. Each time a buyer offers a price and looks at the lead's payday history without purchasing, they are actually hurting the value of the lead and potentially spoiling a lead that may have otherwise been sold for top dollar.
Why EPL Matters
A lead buyer's offered price is not the sole factor you should consider before attempting to sell them the lead. A calculated Earnings Per Lead (EPL) for each filter set is a much better representation of how much money you have historically made from each buyer at each of their pricing tiers. This allows you to automatically calculate the order that filter sets are attempted in order to maximize your revenue on every lead.
*BOBERDOO IS NOT CURRENTLY ACCEPTING CLIENTS THAT PRIMARILY OPERATE IN THE PAYDAY/PERSONAL LOAN SPACE.
Payday Lead Example
Same-Price Filter Sets
Let’s say Buyer X, Buyer Y and Buyer Z each have a $100 filter set. With standard waterfall distribution, your system would alternate which buyer is attempted first. However, when sorting by EPL (total dollar amount paid / total attempts), your system reorders these filter sets to maximize profitability. If the EPL hierarchy is Buyer X ($75) > Buyer Y ($50) > Buyer Z ($10), Buyer X should always be attempted first as long as its EPL remains the highest. Sorting by EPL instead of round robin or manual prioritization maximizes the profitability of each lead.
Different-Price Filter Sets
Consider leads that were rejected at the $100 tier and moved down the waterfall. Buyer X’s second tier is $75, Buyer Y’s is $70, and Buyer Z’s is $50. Standard waterfall would attempt them in that price order. But with EPL distribution, if Buyer X’s $75 filter set has an EPL of $25, Buyer Y’s $70 has an EPL of $30, and Buyer Z’s $50 has an EPL of $45, the EPL hierarchy is Buyer Z ($45) > Buyer Y ($30) > Buyer X ($25). Although it may sound counter-intuitive, Buyer Z’s $50 filter set is actually more profitable and will be attempted first.
EPL Groups
With the boberdoo lead distribution system, you have several lead distribution logic options. These options are available to every client and can even be customized to meet your specific needs. Visit our lead distribution logic page for more information on each of these options.
If you'd like to discuss the best lead distribution options for your business, please give us a call at 800-776-5646 or fill out the form below.
Ready To Get Started?
Fill out the form below to schedule a demo with one of our lead distribution experts.