Am I reading the signs correctly?

[teabags]

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I supply 4 large secured loan companies with leads, (dependant on criteria). Since the “credit crunch” my own volumes have not dropped in any way, and the brokers have been happy enough to take the leads thus far.

Now, one broker in particular is giving me worrying signs. They have contacted me asking for more volume, saying that they have had to cut other suppliers off, due to today’s market and want they want to increase volume with good suppliers, pretty much at any cost.

This is where my worry begins, I have heard this all before. Usually, just before a company goes out of business, they will rally round their best suppliers to increase business, as it their last attempt at correcting the business model.

Am i the only one who thinks like this? "We all know that the mortgage/secured market is going through a rough patch, if a supplier is asking for more business at an increased cost. It is more than likely that they are on the way out"?

I do hope that I am totally wrong on this, as it has been a pleasure to work with them over a number of years. One thing for sure I will not be increasing their lead supply, but am un- sure whether to cut them off right now.

With hindsight, what are your experiences? What other warning signs should affiliates look out for?

Teabags

[russell cpanuk]

I can understand your concern, and you are correct in being careful.

This is a tactic that some brokers/merchants will use. I know this isn’t always possible but upfront money would put your mind at ease. Thing is, there is no way of knowing the internal workings/accounts of a broker/merchant. Often the staff that you are in contact with, will not be aware what’s going on, however tell tale signs are usually late payments in previous months or your contact being hard to get hold of (always being out or in a meeting) changes in staff etc.

It’s very easy for them once it has all gone wrong, to hide behind the administrators

[123debtsolutions]

You're right to worry but I would personally look at the relationship you have with them.
Have they been converting well?
Are they a reputable company?
What incentives are they offering to ramp the numbers up?

Most importantly have you met them? Are they good at what they do?

Remember the time of the year. I for one am under more pressure by the IP's to increase volume although I am showing significant improvements each month.

The truth is all merchants need good leads and if you can generate them then the merchant wants more and more and more...

It's a good position to be in. So see what extra you can get out of them and ride the wave and enjoy.

For what it's worth my only worry is when there is a problem paying... First sign of trouble get out fast.. Other than that your good to go.
If you're still worried why not arrange a meeting at there place and see their setup, see what they do, speak to staff members etc.

Good Luck

[steve333]

Hi Teabag,

Quick reference in regard to reviewing risk management in the form of barter and that goes for lending money or goods for future payment in any format as follows:

1. Check the local court listings covering the providers trading local. If more than two CCJs are spiking and within a 4 to 6 week period then pull the plug.
2. If your gut instinct tells you something is not right then go with it.
3. Part payment up front to underwrite any potential partial loss, if they say no then walk away.

That is why we pay our affiliates within 48 Hrs of a validated lead.

And Lee the next time one of L2U's affiliates posts on the forum eg (Great Networks & Merchants thread), please note it is bad practice to try and entice them over to your own programme.... it smacks of desperation !


Regards,

Steve333.
For L2U
Guaranteed Secured Loans : Guaranteed Financial Solutions London : Guaranteed-Uk.com : Car Credit UK, Manchester

[123debtsolutions]

Hi Steve

I don't need to entice them.
I think short form vs long form says it all.

And the fact that if the guy seriously generates IVA long forms then why wouldn't he sell them to me for £500 a lead...

Hhhmmm.... let me think...

But im sure he knows what he's doing..... lol....

Ps.. For this type of lead I would pay same day... Within 24 hours.

[steve333]

Lee,

I must admit I am slighly dissapointed in you.

We have been doing the short iFrame IVA form now for 3 months with our proven affilliates. The long forms are great for training and present that extra learning curve to higher income.

Best of luck with your £500 OFFER !

But please take on board my previous comment. If that is the nature of your character then fine, I will note the point accordingly. After all it is only business.

Good night all.

Steve333.
For L2U