Cost per Lead to % share on Loan

[anshul123]

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Don't you feel that the industry trend is changing pretty fast, most of the people and banks are offering % share of Loan deals rather than cost per lead. Does that mean that we are heading towards a dead end for CPL Finance campaigns?

Is anyone else feel the same way, please feel free to add your comments.

[cyates]

if the amount per lead was greater i'd happily take CPL but im enjoying my commission on the % too much though so the CPL would have to be a LOT higher to make it worth my while

Chris

[anshul123]

if the amount per lead was greater i'd happily take CPL but im enjoying my commission on the % too much though so the CPL would have to be a LOT higher to make it worth my while

Chris

Is that reply is from Merchant point of view or Affiliate ?

[cyates]

affiliate

[Mike_M]

Does that mean that we are heading towards a dead end for CPL Finance campaigns?

Hopefully not. As an affiliate, supplying the lead is my job - it's the merchant's job to convert it into a sale. I can't imagine the amount of sleepless nights I would have having spent a fortune on Google adwords then waiting for months to see whether the merchant's call centre is efficient enough to convert my leads and give me a decent ROI.

Having worked in a financial call centre for a year I know how easily and quickly a good quality lead can be wasted by a disaffected/lazy/stupid member of staff.

Having said all that, if it was a merchant and network I knew I could trust 100% (ha!), then the returns on a back-end deal could be more lucrative and I would consider selling some of my leads for a % of the sale.

[Michael_Anthony]

We offer both right now, and the long term view is that the back end % will ulimately prove the more profitable option, especially as we are offering up to 6.5% of the loan value on completion.

However, there are cashflow implications (CPA pays almost immediately, back end is an indefinite wait, average 3 months) and many affiliates can't afford 3 months of PPC costs before they see a penny.

My own view is that there is room in the market for both, and that the highest payer, either on a back end or a CPA deal, will effectively set the standard for the marketplace. After all, a back end % is can be directly compared to a CPA with a little simple maths - if the CPA works out at 3% of the average completed loan and the back end pays more, either the CPA has to increase or the merchant will get no volume.

Both have their pros and cons, both have their supporters, which is why we offer both. Will we do so in the long term? My guess is that we will, provided that the marketplace demands it.

[123debtsolutions]

It makes me laugh, I struggled with this decision very heavily 6 months ago. We came to the conclusion that if affiliates had to wait for conversions they would be under worse pressure than me, and that's saying something.

As an affiliate you need a guaranteed payout. You have to know how much is owed to you and where/when the marketing money was spent to achieve this.

The problem percentage deals bring is you never know how much your going to get... I experienced this first hand in the IVA industry when I first started and realised very quickly that the only way to guarantee your cashflow and essentially the only way to calculate your true profit is on fixed fee deals.

Don't get me wrong percentage deals can work with the right merchant, and by that I mean that if you are producing quality and build up some consistency then the merchant will not want to lose you and you are in a better position for more.

This is one of the reasons why we implemented our affiliate program as such. I try to think of us as an extra arm for the affiliate. Our program offers a fixed price for accepting the lead and a bonus for case acceptance (Eg conversion) fee if it coverts.. This way the affiliate know what they have been paid and they also know what conversion fees are due, or estimated to be due.
Best of all they don't have to worry about ccl or calling the client or qualifying them, or even collecting more data than required... This is our job, this is what we do! And by reporting these updates direct to the affiliate they are able to understand the steps being taken and the stages the lead/client is up to in all times.

It's interesting to see merchants popping up these days with very similar payment terms..

Personally I believe there will always be a lot of options to affiliates as there are so many merchants/networks. (Allbeit only a few are worth it.)

[tuna-fish]

For an affiliate to benefit from back end deals of this nature, would they need to hold a CCL as it would seem they are acting as an introducer?

[anshul123]

Hmm.. so most of you guys are talking about CPL.. but are there enough ppl in look out for that...


% deal just don't give any comfort feel

[co-co nut]

With the right company, right deal & competent reporting mechanism a % at the backend can work very nicely. We have a few lead providers with backend % payments & because their lead quality is good the conversions are good & everybody is happy! Those confident in producing "quality" leads & look to establish a strong relationship with us, are very happy in the service we provide!

[123debtsolutions]

Hi Tuna-Fish, You don't need to hold a ccl licence if you are not in contact with the client or receiving a percentage of conversion.
With our deal all you do is generate the lead and provide it to us as normal.

We contact them and work the lead, upon pack return (which isn't conversion) you get paid a bonus fee of £150 on IVA's and £20 on DMP's.

All you need is data protection act licence which is £35pa (I think)

You don't even need this if you use the iFrame or Autofeed script.
All affiliates are assigned an account manager who is there to help every step of the way.

Let me know if you have any further questions.

[tuna-fish]

Hi 123debtsolutions, I understand it from your perspective with the debt leads. I suppose what I am questioning here is the validity of an affiliate, who does not hold a CCL, being able to take advantage of a back end commission payment on a secured loan for example?

[123debtsolutions]

yes for backend percentage deals you will need a ccl, or need to be named on the merchants ccl.

[tuna-fish]

That's what I thought. Thanks for the clarification.

[magenta]

Don't you feel that the industry trend is changing pretty fast, most of the people and banks are offering % share of Loan deals rather than cost per lead. Does that mean that we are heading towards a dead end for CPL Finance campaigns?

Is anyone else feel the same way, please feel free to add your comments.

i think it depends on your marketing methods; if you do ppc it might be better to get a % of the loan because you are likely to have a high conversion rate.