Finance and secured loan affiliates this could make you more money.

[crazihos]

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Most Secured loan affiliates would earn more commission on a payment per conversion basis but prefer to take per lead payments as they offer a guaranteed income and improved cash flow.

However, we pay £40.00 for every lead - which is more than most of our competitors. More importantly, at the end of each month we total the figure you would have made with us on a per completion basis. If you would have made more on a per completion basis then this is the payment you will receive. This way you don’t have the risks often associated with per conversion payments but you increase your earning potential to the same level as our qualified financial and mortgage advisors. We even offer you an override so like them you can earn even more commission on volume performance.

Below is a typical example of the commission you could earn with our program. The example is based on our average secured loan taken of £20,000.00 and uses our typical internet introduced business conversion rate of 1 completion in 10 applications.

Paid on a lead only basis 100 leads would pay you a commission of £4000.00 regardless of completions.

However based on our typical performance the value of your completed loans for 100 leads would be £200,000.00 (10 x £20,000.00). The completion commission on £200,000.00 is 4.5% of the total so your actual commission payment for the month would be £9000.00!!

As mentioned with higher conversion values you receive volume overrides and higher commissions. Below is a table showing the different commissions available on volume completions.

£0 - £250k = 4.5%

£250k - £500k = 5.0%

£500k - £750k = 5.5%

£750 - £1000k = 6.0%

£1000k + = 6.5%

The percentage you achieve is paid on your whole completed loan figure.

This payment method will give you huge opportunities and we believe it will be the highest paying secured loan scheme available.

We would appreciate some feedback from secured loan affiliates on the above as the program is in development and we need to gauge interest. We would also welcome any suggestions you may have.

It is worth mentioning that we are supported by one of the largest secured loan providers in the UK.

Thank you everyone.

PS…its my birthday today - 28 tender years old!

[Mogga]

URL?

PS: Happy Birthday

[crazihos]

Cheers Mogga

The sites in development and I cant disclose the URL yet. If its a popular idea we may run it for lookingforloans.co.uk. I just want to gauge interest at the moment.

It looks good to me especially for the big players but would still work well for the smaller affiliates. One £50k loan going through a month would make you £2250.00

[Mogga]

Sounds good. Count me in!

[drivetowin]

I think most serious affiliates would be up for this - after all its a cant lose for affiliates essentially.

Are you planning to run it independent or through a network?

[NetNeo]

I like the sound of this too! count me in and dont forget to offer an hml form that can be placed on our sites! I find this converts better (in my experience on my own sites)

[crazihos]

I know the arguments for networks are good but for this kind of scheme an indy program would be better with direct telephone contact with all of the affiliates and completely open accounting like we would have with financial advisors.

The scheme mentioned is more a business partnership than an affiliate one and I would like to have a more active relationship with those working with me.

If the turnover proved to be sufficient then higher commissions could be negotiated. But the above is a good starting point.

Thanks for your input Mogga, Keith and Netneo -

any more feedback would be great.

Russell

[drivetowin]

Russell

While I only work with independents where there is a compelling reason to do so, in your case I think there is a compelling reason to do so

[crazihos]

Thanks for that Keith,

It really is a numbers game - the more we achieve as a group the more we can negotiate with the lenders and the higher everyone’s profits would be.

I would much rather be making a small amount from each loan but converting high numbers and putting everything else back into paying commissions as it's much more beneficial to have the continued trust and support of loyal partners something the above program would promote.

[Middleman]

Don't forget that if you are paying completion commissions all your affilliates become introducers. For that they will need a CCL (unless they intend to promote your product exclusively).

[crazihos]

Are you 100% sure on that middleman? I know of one secured loan firm that pay affiliates a per completion commission at the moment and they are one of the larger companies who would have in house expert advice on regulation?

And it wouldnt exactly be payment on commission as we would pay per lead but with a monthly on target 'bonus'.

If that failed I would organise them to come under my firms CCL or I would recommend affiliates apply for them and pay them the £110 they cost as a bonus with their first completed loan that way they wouldnt be out of pocket themselves.

[Middleman]

Hi

Yes, I'm certain - I don't think the OFT would buy the 'target bonus' rather than 'commission' idea.

Full details are at

http://www.oft.gov.uk/business/runni...siness/cca.htm

It's also worth noting that now the FSA is regulating mortgages, the OFT is dedicating more time to ensuring loans compliance.

Also, be wary of secured loans (and bridging loans) where the applicant has no current mortgage on their property - a secured loan in this case would be a first charge and so considered a mortgage. Introducers must be within FSA regulations if this occurs.

Regards

MM

[Steve Jennings]

Yes, I'm certain - I don't think the OFT would buy the 'target bonus' rather than 'commission' idea.

This would depend on how the affiliates were promoting the program, you could potentially do this without each affiliate having a CCL - But again you shoud take your own legal advice and presume that because someone else does it its OK - I'd have though this would have been looked into before you announced it on here Russell.

Also, be wary of secured loans (and bridging loans) where the applicant has no current mortgage on their property - a secured loan in this case would be a first charge and so considered a mortgage. Introducers must be within FSA regulations if this occurs.

Even a regulated agreement first charge under £25,000? Wouldn't this come under the Consumer Credit Act and so the OFT?

[crazihos]

Thanks for that Middleman -

deal only with limited companies (unless you are a credit reference agency

most afiliates deal with more than one company which is why the other secured loan company is able to offer a comission payment.

The other options still apply though (but not the target bonus one-lol) and I believe many of the larger finance affiliates already have CCL's which would of cause cover the problem.

The mortgage issue is easy to get round with a tick box for do you have a mortgage. 99.9% of our applicants do anyway so this isnt a problem.

[crazihos]

Thanks Steve,

I posted on here to get peoples reaction to the idea before I invest in setting it up. I must admit I didnt think to much about the CCL as any IFA's we normally target have them anyway.

Like I say there are options for affiliates getting an CCL paid for by myself but I dont think in many cases one would be required. Unless as NetNeo asked we went down the route of putting our xml forms on other peoples sites.

But even this is a grey area. One large finance only affiliate company do it regularly and use it as their main method of advertising. (Steve you prob know who I'm refering to).