Payday loan affiliates direct customers to lenders’ websites and are paid per click or completed application. They use SEO and marketing skills to drive traffic to the lender’s site. Lenders view the partnership as a cost of doing business and rely on customers to bring in more traffic. The affiliate has low startup costs and needs a website with moderate to high traffic and an audience that would want payday loans.
Payday loan affiliates do not actually finance payday loans. Rather, they lead those seeking personal loans to a specific source of personal loans. These franchisees are paid by the lending franchise but are not actually employees or subsidiaries of the franchise itself. For all intents and purposes, the payday loan affiliate and the lender are partners.
Essentially, a payday loan affiliate directs customers from their website, which has nothing to do with payday loans, to the loan website. A website affiliated with a payday loan may use advertising or marketing techniques to get customers to click on the lender’s link. The affiliate is then paid per click or per completed application, depending on the agreement between the affiliate and the provider. In some cases the affiliate is paid, not only for the click or for the question, but also paid back for any loans actually disbursed.
Using search engine optimization (SEO) techniques, the payday loan affiliate attempts to find ways for their website to rank high among searches, which helps drive more customers to their site. This, in turn, results in more clicks to the lender’s website. Internet marketing or advertising skills can also be beneficial in driving more customers to the lender’s site.
Lenders pay a third-party company to monitor incoming customers, which means the affiliate doesn’t have to monitor traffic. The lender views the partnership as a cost of doing business because it makes more money on the interest charged to customers than it pays the affiliate and tracking company. The lender then counts on the customer to apply for more loans and bring in more traffic by word of mouth.
The payday loan affiliate has very low startup costs. Prospective affiliate must have a domain and website with moderate to high traffic. The more traffic there is on the website, the better the chances of redirection to the lender. The franchisee should also have an audience that would tend to need or want payday loans. The franchisee then contacts a payday loan franchise to initiate the partnership.
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