Category: Marketing Ideas

05
Jun

Payday Loan Advertising after the Google Ban

Payday Loan Advertising after the Google Ban

After Google, Bing and Facebook banned Payday Loan companies from advertising their products, direct acquisition of new loan borrowers has gotten more difficult. The move is especially troublesome for those companies with small marketing budgets, as the market leaders have built brands that enable them to continue funneling in new payday loan, installment & title borrowers without aggressive acquisition focused advertising.

The primary strategy for payday loan, installment, title and line-of-credit lenders is to build their own brand. Building a compelling marketing proposition with the creative to match, and spending considerable budget on advertising this brand, are no longer optional in order to create a long term competitive advantage.

Balance sheet lenders must bring a sense of real world legitimacy to their offerings in order to get business without relying on tactics at the bottom of the acquisition funnel. These tactics include PPC, affiliate and targeted SEO keywords that place lenders in front of potential borrowers at the moment they need access to small dollar loans. While it’s great to be there at this stage of the acquisition process, in order to build a lasting loan portfolio that doesn’t rely on one fickle media company (like Google), lender brands must literally be inside their potential customer’s head before they make their loan decision.

Payday, Small Business & Installment Loan Biz

Payday, Small Business & Installment Loan Biz

To gain this brand awareness in terms of media channels, we recommend TV, outdoor, print and direct site sponsorship in addition to programmatic marketing; of course, budget permitting. On the ‘earned’ side of media, lenders should focus on Public Relations, Content Marketing and Organic Social Media –  again to bring a sense of real-world legitimacy into prospective borrowers minds and to create brand awareness.

Lenders should also employ direct acquisition tactics, in addition to building a brand. If there is not enough budget to do all of this, we recommend focusing on acquisition. We live in the real world, and those lenders on a shoestring budget will have no other choice. For direct acquisition (those bottom of the funnel tactics) we certainly recommend lenders to employ lead generators, programmatic display advertising (RTB and Retargeting), SEO through content link building on quality sites (no shady stuff!), email advertising and perhaps even snail mail direct marketing.

[Be aware that direct mail marketing, unless well targeted, typically results in <1.5% conversions! Expensive… After reviewing 15M+ first-time customer acquisition conversion rates, CAC’s (Customer Acquisition Costs) ranged from $198 – $395+.]

One interesting detail is that payday lenders can still  use Google’s display network via Google’s Adx; one of the largest programmatic exchanges. If that continues, it demonstrates that this was merely a public relations move for Google, with their most visible property (paid search) as the only place this ban is in place.

This article was contributed by Bart Burggraaf who is a partner at MediaGroup Worldwide, a niche financial services marketing agency. Get in touch if you need any help with your marketing as a payday, installment, title, or line-of-credit lender.

Jer – Trihouse: PaydayLoanUniversity.com/

27
Feb

Payday Loan, Title Loan & Installment Loan Marketing Ideas Part 2

Part 2: Payday, Car Title & Installment Loan Marketing Ideas

This is a short followup to our previous email/Post entitled:

“Payday, Installment & Title loan Store Marketing Ideas: 101”

Every lender is whining about how to get more customers and fund more loans.

The truth is there is no magic! To scale your loan portfolio requires you to get-off your butt, do something, test your efforts and MEASURE the results.

As a result of our previous lengthy Post on “Marketing 101 Ideas,” dozens of operators called and emailed with questions and comments.

The #1 question posed to me by storefont lenders? How do I find potential referral partners?

You may recall this idea from the Post:

“Referral programs with businesses that service our demographic and need to be made aware of how we can help the merchant make more money. I’m referring to lawyers, bail bondsman, mechanics, Aamco transmission, brake shops, tire and rim companies, other PDL/title loan stores that employ different loan criteria or don’t service the same loan areas we do, tax preparers… GET CREATIVE!”

My answer? Google it!

https://www.google.com/maps [See image bottom of this Post.]
Search for “bail bonds service los angeles 90057”
Click on each of the red icons
Enter the Company name, address, phone number, website [if they have one] etc. in a spreadsheet.

Depending on your circumstances, pick at least one day every week to do the following:

  • Arm yourself with some of your company pens, pickup some donuts and GO VISIT THEM!
  • Introduce yourself
  • Share how your loan service can help them make more money.
  • Discuss your paid referral program with them. [IE: Offer them $25, $35, $50 per funded referral.]
  • Suggest they have a potential referral customer mention the Bail Bonds Company for a 10% discount on their first loan with you.
  • Pick up their business card and leave; after you leave them some of your company pens and the donuts.
  • Document who you met, what was said, what you promised… on a yellow pad while in your car before hitting your next bail bondsman.
  • Visit as many of these potential referral parners as you can that day.
  • Return to your office and enter your notes from these meetings into your spreadsheet.

Now, make certain that during EVERY inbound phone call you receive or customer walk-in, your Team asks “How did you hear about us?” [BEAT THIS INTO YOUR ENTIRE TEAM!]

Be MANIC about paying your referral partners their fees. Deliver the CASH to them IN PERSON!

Rinse and repeat… Bail bondsman, lawyers, auto repair shops…

FOLLOW-UP & PERSISTENCE will increase your income! Get organized.

This is not rocket science!

Now go make some MONEY!

payday loan, car title loan, installment loan marketing ideas

Use Google Maps to Discover referral partners for payday loan, installment loan and car title loan lenders.

22
Aug

Tax Prep Services for Payday, Title and Installment Lenders?

Just like you, the thousands of readers of this Newsletter are racking their heads for ideas and methods to increase their Financial Service Center Loan Business revenue AND survive the CFPB B.S.

One business that we’re exploring is Income Tax Preparation.

I’m speaking here from real experience with this.   I’ve offered tax preparation services in two of my payday loan stores.

Let me tell you the good, and the UGLY.

First, tax prep is a great complimentary business for financial service centers.

On paper, it’s a slam dunk.  You’re already paying the overhead. It’s the same demographic. There isn’t a huge requirement of space. And, the training is easier than you think.

Tax prep software does 98% of the work for you.

Mistake 1? 

My first year, I DIDN”T listen to my franchise training people, and I went after small business people.

WRONG!

You can’t make money on them and their returns are often too complicated.

When I shifted my focus to LOW-INCOME customers, I started making serious money.

Example? A single mom with a truckload of kids is going to get an $8000 refund from the IRS! These moms don’t cry about paying a few hundred bucks for their tax prep service. [They just want their government money FAST! And, you can expedite this for them. You’ll have the tools and the knowledge. You’ll even have a bank account that offres them $800+ in advance of their refund from the IRS!]

Mistake 2?   

I assumed that I would automatically get all of my current payday, car title and installment customers to file with me.  Didn’t happen.

You have to sell, sell, SELL!!

Drive around, give out pens, be friendly, advertise… Yes, even to the customer that you already have a relationship with! They see you as the Loan GUY (or Loan GIRL).

Here’s the opportunity:

You can typically earn $200-$250 per return.  It takes you 10-20 minutes to complete.  Not bad!

Get 250 customers through your door and you add $50,000+ to your numbers.  If you have several locations, that quickly adds up to a serious increase in cash flow for your financial services business. AND, this all happens from January 8th through the end of March!

It’s a well known fact our industry is very GOOD at customer service.  Every survey, every investigation reveals that we KNOW our customers and that we take great care of them.  [As you know, this fact really pisses off the banks, credit unions and so-called “consumer advocates.”]

Tax prep is a huge opportunity for us because the BIG names in the income tax prep business – H&R Block, Jackson Hewitt, Liberty – they hire crappy employees with a crappy attitude.

Get people in your door and you can turn them into permanent customers for ALL your financial services.

Miro, Jer and our Team are vetting different Franchise operations as you read this Alert.

We’ve interviewed a multitude of Franchisors and franchisees during the past several weeks.

We’ll present you with our tax prep recommendations in the coming week.

But right now, we have one recommendation for you:

Get an EFIN number.  

This is a special tax preparation ID number that is issued by the IRS.

It is FREE.

It doesn’t commit you to anything… BUT, it’s the government… they take 45 days (minimum) to process this application.

You CANNOT do a Tax Prep business without it.

It costs $0.00 to get it and you must have it.  But if you don’t have it, you can’t even explore this exciting opportunity.

Here’s the link to the IRS Website. EFIN

Just in case, here’s a shorter link via Google’s URL shortner: https://goo.gl/JymYjQ

Get your EFIN number and hold on to your hat.  We’re going to provide you with some real opportunities here.

Start now! Get this done! Take action today before you forget and before you get left behind.

Don’t take action today AND it’s gonna be PAINFUL!  

We’ll be back SOON! Want access to our research? Email Team@PaydayLoanUniversity.com with Tax Prep in the subject.

Best! Miro & Jer http://www.PaydayLoanUniversity.com

05
Nov

Payday Loan Leads

Payday Loan Leads

By: Team PaydayLoanUniversity.com. [Updated] The CFPB has spent considerable time exploring the implementation of new rules and regs payday loans, payday loan lead gen and internet lead generation in general. After months of meetings and discussions with consumer protectionists and lead buyers, sellers and generators, they published a Blog about their “findings.”

This is a good, basic description of the current process. The astounding element that escapes the majority of us is that the lead generation and monetization process described takes place in nano seconds!

HubSpot has some interesting lead gen stats here that are worth a few minutes of your time.

Here’s some quick lead generation stats that will blow you away:

On average, we conduct 12 billion searches per month on the web in the United States. (Comscore)

YouTube has become the 2nd Largest Search Engine – bigger than Bing, Yahoo, Ask & AOL combined. (Social Media Today)

$26-50: the average Cost Per Lead for companies with $250,000 to $10 million in revenue.

44% of consumers say that they would like brands to deliver deals and coupons to their mobile devices. (Millward Brown)

50% of all mobile searches are conducted in hopes of finding local results, and 61% of those searches result in a purchase. (Search Engine Watch)

61% of companies have created a mobile site or optimized their existing site for mobile. (Chief Marketer, Mobile Marketing Survey)

Research shows that 35-50% of sales go to the vendor that responds first. (InsideSales.com)

79% of companies that have a blog reported a positive ROI for inbound marketing last year. (HubSpot State of Inbound)

80.8% of users report reading email on mobile devices.

Last year, email marketing was cited as the most effective digital marketing channel for customer retention in the United States. (eMarketer).

Here’s the original Executive Summary of the FTC Lead Generation Workshop. You may click the link below for the original work.

CFPB: The Five Stages of Online Lead Generation

Theodore R. Flo and Christopher J. Willis

Advanced Payday loan business course

Advanced PDL Course

The FTC presented a workshop on lead generation entitled Follow the Lead. Online lead generation is an area receiving increased regulatory scrutiny by the FTC and other regulators, including the CFPB. Over the next several days, we will be presenting a series of posts highlighting key issues in the industry and likely targets for CFPB and FTC enforcement activity. In this first entry, we provide a high-level overview of online lead generation’s five-stage process.

Stage One: A Consumer “Raises Her Hand”

In Stage One, a consumer takes some concrete action online expressing interest in a product or service. Often, this consumer interest is first reflected in an online search. Various players in the online advertising market work to optimize what consumers see when they enter particular search terms. Upon viewing the search results and targeted advertisements that appear alongside or embedded within the search results, a consumer then clicks, allowing anyone with access to the click data to get a better sense of what the consumer is interested in. The consumer’s expression of interest, by itself, is not enough to generate a marketable lead, however. The interest data must be combined with a way of contacting the consumer.

Stage Two: Converting Interest into a Lead

There are several ways that this may occur. For example, after clicking an online advertisement, a consumer may be redirected to an affiliate website containing a form to fill out. An advertisement may also allow a consumer to “click to call” a live salesperson.

Online leads may also be created by aggregating data about consumer behavior in different online spheres. For instance, a consumer may visit a shopping website and search for socks. A third party may purchase the click data, incorporate personal contact information obtained from another source such as an online retailer that can link the consumer’s IP address to contact information, and create a lead that can be followed-up on by a specialty sock retailer.

Each of these different aspects of lead creation is often handled by a different company that specializes in hosting web forms, managing “click to call” phone centers, or aggregating data, for example. Once these entities have created the lead, they work to sell or otherwise monetize it to earn a profit, often through resellers.

Stage Three: Lead Resellers Package and Auction Leads

In Stage Three, lead resellers connect lead creators with lead purchasers. Lead resellers maintain networks of lead creators whose leads they buy at prearranged prices. Lead resellers also maintain networks of companies interested in purchasing leads with certain characteristics. When leads come in from the creators, the resellers filter them and present lead purchasers with leads matching their specifications.

Stage Four: Selling the Lead or Lead Data to a Purchaser

In Stage Four, purchasers buy the leads from resellers, often through a reverse auction process referred to as a “ping tree.” In the reverse auction, various purchasers set prices that they are willing to pay for leads. The reseller then presents leads matching the purchasers’ specifications to the list of purchasers with the high bidder being given the first opportunity to buy the lead and so on until the lead is sold or the buyer list has been exhausted.

After a lead is purchased, lead creators, resellers, and even purchasers may sell the lead or some data from the lead to other purchasers through a practice known as “re-marketing.” Critics of this practice say that it causes consumers to be bombarded by “unwanted” advertisements. Proponents argue that it gives consumers more choices and information which helps them make better decisions.

Stage Five: The Lead Purchaser Reaches Out to the Consumer

Stages One though Four often happen within seconds of a consumer expressing interest in the product or service. In Stage Five, the purchaser reaches out to the consumer in an attempt to close the deal. Lead purchasers do so in several ways. Some simply call or email the consumer. Others present the consumers with a series of targeted offers or buying choices through a website or “landing page.”

Potential Problems

Participants in the FTC workshop raised several consumer protection issues with this process, which we will explore in subsequent blog posts. Some view the process as inherently deceptive. They argue that the information that consumers receive from the lead purchasers is not an accurate reflection of the consumers’ buying choices because the information pertains only to a limited subset of products or services offered by the lead purchaser. Of course, by this standard, any advertisement would fail, given that none of them present consumers with the full range of choices on the products or services that could potentially fulfill the consumers’ needs. Rather, most advertisers market their own products exclusively.

Other participants raised questions about the role consumer disclosures should play in lead generation. Some said that disclosures should be made more robust and prominent. Others argued that too many disclosures cause information overload. Still others said that disclosures don’t matter because consumers don’t read them. There does not appear to be any consensus on this issue.

More fundamentally, if a balance needs to be struck on any of these issues, who should decide how that happens?

Currently, the lead generation industry is largely unregulated by the government, except through a handful of federal and state laws, highlighted a few years ago in a GAO report, and a patchwork of federal and state agencies. Right now, many lead generators submit to industry regulation through membership in the Online Lenders Alliance and its “best practices” or other organizations such as the Better Business Bureau. We know that the CFPB is stepping in to this area and will doubtless take a leading role in defining whether certain conduct is deceptive, the proper role of disclosures, and how the industry will be regulated going forward.

In our next post, we will explore the disclosure-related issues that came up in the FTC workshop and how those issues are likely to play out as the industry evolves.

Here’s a link to a CFPB complaint against T3 Leads. T3 Leads . [The Bureau’s complaint against T3Leads is not a finding or ruling that the defendant has actually violated the law.] If for no other reason, read this CFPB complaint to gain insight into what/who the CFPB is targeting.]

Here’s the link to the FTC Lead Generation Workshop: FTC

09
Sep

Title Loan lending Tactic

Here’s an interesting title loan lending tactic:

“Leap Financial buys cars from lenders that are in the process of repossessing them from their owners. The company “leases” them back to the same owners for a lower monthly payment. The lender gets more $$ back on their balance sheet than it would if it had sold the borrower’s car at an auction.  The borrower gets the car back — with a GPS-based starter-interrupter that disables the car if the customer misses a payment.” Said Condon: “We get shockingly good results.”

Title Loan lending Tactic With all the CFPB changes in business practices on the way, it’s easy to forget how resourceful and inventive lenders in the car title loan, payday loan and installment loan industry are. Demand by households continues to increase for these products. Banks are dropping like flies when it comes to servicing the credit challenged consumer.

28
Jan

7 Marketing Ideas for Payday and Car Title Loan Companies

Branding for payday Loan, Installment loans and Car Title loansSmall Dollar Credit Stores and Branding. 7 Marketing Ideas for Payday and Car Title Loan Companies

Why focus on brand building for your installment lending, payday loan, car title loan, check cashing store or pawn shop?

  • To differentiate your store from your competition
  • To position your store as the CENTER for providing small dollar credit
  • Serve as your foundation for all your marketing and advertising
  • Build customer loyalty
  • Define your small dollar financial service center in the minds of customers, employees, and the community
  • Establish a sense of trust and legitimacy with customers and the community
  • To provide your company with a sense of clarity. Who you are. Who you serve. How you’re different from the competition. What your customer can expect from you.
11
Jun

A Case Study in Unconventional Marketing: Loans

When we talk to operators, I always push UNCONVENTIONAL marketing.  Getting solid, well paying customers is hard.  Doesn’t matter if you have one store, or you have a HUGE call center and only work online.  The trouble and COST of customer acquisition is a huge part of your business challenge.

This past weekend, I stumbled onto a SWEET little marketing idea.  I’m going to show to you in this video, and I go on about how the guy could have taken it a few extra steps.  But I’m NOT being negative.  This was a cool idea, and I have to give all the credit to this small operator.

Watch and learn.  How can you apply this to your operation?

 How can you reach out through these unconventional channels and avoid the clutter of your competitors?  How is this ability to stand out so important to create that connection to the customer?

http://youtu.be/-KGlZr0MlmI