I saw a news story last week that reminded me of something else I had recently read on Andy Jacob’s SuperCloser that I had to check out. Mr. Jacob stated that he read in the LA times a story about a San Diego Developer that was giving away a house in Escondido to whoever purchased a house in the San Pasqual Valley.

 Ironically I then heard an ad on the radio about a Phoenix builder, giving away a Toyota Prius if you purchase “green” home in Queen Creek, Arizona, or in a 55+ community in Peoria, Arizona. No other upgrades just a new Hybrid car.

 There was then a man that was trying to sell a 2 million dollar home. As an incentive he partnered with a local BMW dealership to let the buyer choose 1 of 6 of their $65,000.00 BMW’s, and the homeowner was going to pay for it.

 These are all genius ways to get their names out there to the public.  These stories have been done in the news or on the internet in hopes to generate some interest in selling some homes in this slumping housing market. Is this a new and creative way to generate interest in selling a home?  Other ways of selling the home were not successful?  I guess the logic is the more people talking and reading about this interesting scenario, the more their name or brand will get out there to people who may not have heard of them. Free advertising? …….or is it really desperate measures to get rid of a home that would not sell any other way?  I will say one thing:  very creative!  They caught my attention.

Are you wondering why Payday/Cash Advance companies refuse to take or buy leads that are active military?

Octorber 1, 2007, U.S. Congress passed the Military Lending Act that bar lenders from charging military or their family with dayday loans that will trap borrowers in debt and typically carry high annual interest rates.  The Military Lending Act will only allow lenders to charge up to 36% annually for any service members and their families.  The law says Payday Lenders cannot hold onto the service members personal checks or have electronic access to their bank accounts as a collateral for this type of loan.  This will allow active military to get loans with higher interest than a credit card but still far below what a payday loan charge.

Many companies out there are finding ways to focus strickly on Military loans to offer them other alternatives to loans.  There are many websites that are only interested in Active Military.

Many new laws are now starting to come up that are trying to restrict lenders from high rates.  My personal opinion is that a payday loan is simply just that a “PAYDAY LOAN.”  If you are interested in a longer loan (a few months term or more) then go to your nearest bank and apply for a personal loan, I can guarantee you it won’t be as easy as a payday loan and the interest will still be high.  All these laws being passed yet its not the lenders fault that these consumers are borrowing money and commiting to pay it back by their next paycheck, then become highly upset because they are not able to pay it back.  A payday loan was design just to borrow money and help you pay those important bills till your next payday.

I just wanted to let all our readers understand why there is not a strong demand for military leads.  In our marketplace however, we do have a demand for them.  If you have military leads bring them here, we have a source that offers alternative and is highly interested in that lead type!

Who are the underbanked?

Pamela Yip of the Dallas News had a very good article about the underbanked. According to Yip, The Center for Financial Services Innovation recently released the results of its study that attempts to more closely define who are the underbanked.

According to Yip, they fall into 8 categories.

•“Cash Is King” – These consumers are most likely to rely on cash for their financial transactions and are the least likely to have bank accounts. They have much lower household incomes than other segments and are more apt to be struggling to make ends meet.

•”The Next Wave” –Consumers in this segment are trying their best to make ends meet and hope to reach financial goals, such as owning a home. Cash plays an important role for them. They want to save money and are interested in earning interest but are still less likely to have banking relationships.

•”The Strivers” – Strivers take an active role in their money management. They’re active users of bank accounts and engage in many financial transactions. But some strivers don’t have checking accounts, citing privacy concerns.

•”Middle of the Road” – Middle of the Road adults are also active financial money managers. Most have bank accounts.

They are less likely to have come from families who have banked. They’re most likely to make their financial transactions in a stand-alone bank or credit union because they find the employees most friendly and helpful.

•”My Way” – Members of this group are more likely than other groups to have a bank account. But they make frequent bank and nonbank transactions at various places – including convenience stores. They want convenience. And they’re leery of hidden fees or high minimum balances.

•”The Savers” – As the name implies, saving money is their key reason to have bank accounts. Keeping money secure is also a key reason for these accounts. They make frequent transactions at nonbank places like supermarkets, convenience stores and discount/dollar stores.

•”Almost There” –These consumers are more likely than others to be part of traditional financial institutions and are more comfortable making transactions in a bank/credit union than nonbank settings. They prefer banks or credit unions that are contained within a store rather than stand-alone buildings.

•”Borrowers” – These consumers borrow money frequently. They have had student loans, personal loans, lines of credit, home equity loans, payday loans, and auto loans – all at higher rates than the average adult. They still make transactions at supermarkets and convenience stores but most have bank accounts.

The underbanked study is very good information for lead buyers and sellers attempting to increase their ROI’s.. According to Yip, there are  40 million underbanked households . For Internet marketers, this may be an incredible long-term opportunity to assist these important, and underserved customers.

What do consumers do if they do not fit the “ideal” mold of conforming lenders?  I have learned  that some consumers seek out “peer-to-peer” lending websites (p2p).  I did not know much about these sites, so I took a look around on the internet.   Very interesting concept.  These websites are set up to bring together consumers with lenders that are able to do higher risk loans (personal loans, sub prime auto loans etc).  This is a marketplace where the lenders will bid on that consumer, to be able to provide that loan the consumer is in need of.

Here are a few things I found on these types of sites.  The good thing is, I think there are certain circumstances where consumers really need a loan for one reason or another.  For instance, a consumer could have a lot of different credit cards and their rate is 20+ percent.  Getting a loan with one of these lenders could benefit them even if they are paying 10-15%.    Another good aspect is this is another form of lead generation and where lenders can provide loans to consumers that need their type of services. With lending abilities getting more strict, lenders need leads of potential consumers that are looking for their type of loan.   However, are there also instances where the consumers are taking out loans for 30+%?  Yes, there appears to be instances where this is also happening.  Consumers sometimes just think they need a loan, but really the position they are in currently might be a better position compared to where they could be, in taking out one of these high interest rate loans.  These loans are usually more than the amount of a typical payday loan (another high risk loan), and tend to have longer loan terms.  These loans are often not securitized, so this becomes a very high risk loan for the lenders.

So are these sites doing more harm or good for consumers?  As a lender, is this the best way to generate leads? It appears there could be some benefits to these sites, however the consumers need to really look at the overall picture, and decide if this type of loan is really a smart financial decision.  In some instances, it is a great opportunity, but for others it could be a bad decision. Making sure the lender that is apart of this marketplace is a legitimate lender is very important to look into.  As far as the lenders, this could be a very high risk way to lend money because the default percentage is probably very high.  Are there maybe additional ways to generate leads of consumers that need these types of loans?  

Do your homework before taking out any loan.

Choosing the right affiliate to work with in a lead marketplace is crucial!  Not only publishers but advertisers as well.  Every market has companies on the “Good List” and companies on the “Black list”.  You might be asking yourself, “why is she writing about this?” Well, its important, and yes we are on the Good list!

You have to know who you can issue a line of credit for example, or who is going to produce real quality leads and not name’s and numbers gathered from the yellow pages.  Are you laughing? No really, its time for the truth, unfortunately you will have them knuckle heads that want to make easy money and just start POSTING junk! Or you are going to come across advertisers that want their cake and eat it too, they want leads on a credit line and then disappear into thin air.

Just be careful who you choose as affiliates.  There are sharks in the water!  There are many great affiliates to work with so take this as good advice.  Just be careful who you affiliate with and ask lots of professional questions. 

Ok, say a consumer is paying about a $100 a month on their cell phone bill… how excited will they be to receive some advertising on that cell phone? Well, rest assured, many individuals and companies are trying to figure out how to tap into this mobile market. Yesterday Yahoo and Coupons Inc. forged a partnership that could bring coupons to mobile devices. Mobile coupons have already been tested in certain markets. To say there are a few things to work out, would be a huge understatement. GPS may be used in the future. Imagine you are walking near a Starbucks and all of a sudden you get text message offering a discount or special at THAT Starbucks. What if you are already in line at Starbucks when you get the text? What if you are driving 50 MPH when you get the text? Perhaps it would be better if you could click once to order your favorite drink, and have it waiting when you walk into that Starbucks. How much advertising will be accepted by consumers? Clearly, there are many questions about mobile advertising, and just as clearly there are few answers. One thing is certain: mobile advertising is on the way. How will it work for all parties?

Debt is becoming a big space in the lead industry.  Look at gas prices. The average state is paying $4 plus per gallon.  How does this affect consumers?  Simple, they are paying for gas with their credit cards.  According to an article read today Bankrate reported an average credit card interest rate at 13.42%. This mean that consumers are not only paying for the high priced gas but also interest on it.  

You see how this relates in the debt space.  Consumers are falling behind on their credit card payments as the economic headache is affecting their everyday lifestyle.  

Debt Settlement and Debt Consolidation companies more now than ever are in urge of helping these consumers with their debt.  Meaning, they are buying more leads.  The demand for leads in the Debt space is high as the consumers are becoming more buried with debt.

Good time to start spending marketing revenue on this lead type!

After reading an article today on DMnews I found it very interesting when they were discussing an additional way for business owners to monetize their websites more with an automative system.  For instance, there are consumers that navigate around on websites and would like to speak with a live person about questions or needs they have.  The product or service the website is offering is maybe not cut and dry like buying a new pair of shoes. Therefore, companies are now implementing a new telephone application system called TAP (telephony application provider).  This is a system that can be integrated with these website owners that allows them to put a “call” button on their website for consumers to click on.  This button does not ring the consumer to their office or phone, but instead it routes them through an answering system that filters the calls properly.

A phone system is a high expense potentially for business owners, however with this system it is rented by the business owner.  This saves some cost for the business, yet allows the consumers looking for help to be converted to potential sales.  So why not just get an 800# and have consumers call that number when they are on the website wanting questions answered?  Some websites might have too much traffic on their site and not be able to handle the calls themselves, and can not afford routing the calls to a call center.  Some website owners are simply that – website-owners not offices with a bunch of employees and an office full of people to take care of calls.  However, this website owner wants to not let potential clients slip through the cracks and not get questions answered if they are on the website.  This system can potentially save money for that business by directing the phone traffic correctly,  and this system will also help with the lead generation follow up.  These systems have the ability to be programed to answer some basic questions and properly direct the consumers.  Is sounds to me like an automative receptionsist, but costs the business a lot less money.

So how does this impact money made on the website and lead generation?  Businesses have websites because it is less expensive to run a business through a website, instead of through a regular office.  However, if there is business on the table and clients coming to the website, these companies will not always have the people just submitting the request to purchase the produce or service (lead).  Therefore, businesses must come up with cost effective ways to capture the attention of those that need additional help.  This system allows them to generate leads from their website, in addition help confused customers become sales also.  Some consumers would simply leave the website if there was no phone number to call or to get any kind of help.  Sounds like a great idea for the average small to midsize business with limited funds, but looking to make the most money they can on their website!  Every customer is just as important as the next……

What is an actual valid return in the a lead marketplace?  Did you know that some Companies have a certain percentage or a number of leads that you are allowed to return?  We always talk about the lead gens, but what about the companies that are buying these leads?  Are they truly returning invalid leads or are they trying to return good valid leads?

Aside from a disconnected phone number or wrong number, what is a valid reason?  It will definitely depend on the lead type.  

If your buying leads on a CPL basis don’t expect every lead to close. So you come across these companies that when they don’t make a sale they want to return the lead for any whimsical reason.  We need to be fair.  If our not buying leads on a CPS basis then take it as a cost of doing business.  Protecting publishers that are spending revenue to generate leads is also an important factor.  Advertisers must be fair in what they return.  If the lead acknowledges submitting the request but they just don’t qualify for YOUR program.  That is still considered a valid lead.

Remember that some marketplaces have certain percentage or number of leads to return.  That’s not right. If a lead a bad its bad return it.  But if its good then make the sale and buy more.  

I know that the economic crunch right now affect part of our society, but for God’s sake lets be clear on how business should be done. 

Here are valid reasons for returns:

• Not a working number
• Wrong number
• Person did not fill out request
• Bogus contact information

That’s it! Ask yourself.  Are you here to cry about the leads or work the leads?  If you have leads that are interested, CLOSE THEM! A strong company doesn’t complain they ask for more! They are here to do serious business and they need our help to increase their ROI. So get back to work an close those leads!

According to an article in CNNmoney, there are more types of loans that are concerning experts besides just the subprime mortgages.  Many feel that that industry has almost hit “bottom”, however there are other types of loans that are starting to see higher delinquencies – auto loans, prime mortgages and credit cards are all facing problems in this financial crunch.

Home equity loans and credit card accounts are falling more behind than even the auto loans.  Is that maybe because people are wanting to pay their car notes first, because they know they will need that car to get to work each day?  Are consumers having to prioritize what delinquent debt to pay first?

Bottom line is there is not one industry out there that is not somehow being affected by this credit crunch. Grocery stores, lenders, fast food chains, retail stores to resorts and hotel chains.  To add fuel to the fire, gas prices have even been rising and rising to a level that some can not afford to drive.  Employers are negotiating alternative schedules to allow employees to do a 4 day work week or paying a certain amount towards their employees gas expense.  As an employer, you must decide to make adjustments to your work force or suffer the possibility of them not being able to come to work? 

So how does this specifically impact the lead generation industry?  Consumers looking for debt assistance in some manner is going to continue to grow in popularity AND consumers wanting information about loan modification will become more demanded. These are lead types that will become even more in demand because the number of consumers needing the help is increasing EVERY day.  On a downside, lead types such as vacation, life insurance and maybe even luxuries like security system leads will be less in demand. Lead generation companies must successfully adjust to what is happening with our nations economy to remain in business.

Think of a time when you have had to call a company when the person who answers says “What do you want?” How about the last time that you went shopping or out to eat and that person ignored you? How did that make you feel? Did you want to hang up the phone or get up and walk out? Good customer service is hard to find some days, but it is something that we should all strive to do in our business and our personal lives. Should we be rude right back, or show a smile and say “Hi”?

 The simple things are what make GOOD customer service into GREAT customer service. When speaking with someone on the phone, if a smile is made it can change the whole outlook of the conversation. Also, by using the person’s name it makes it a more personal conversation and the person will remember that call and appreciate that someone remembered their name. Kindness can also help when someone is angry or irate if you just let them vent using “I understand that must be…”  No one can know what anyone else feels, however having a kind person on the other line just might make them feel better.

 Make sure that you treat the person on the other end of the phone the way that YOU wish to be treated. Who knows, some day they may be on the other end of the line when you are calling their place of business.

Ontario Payday did it right! Ohio should have followed their example.

And yes, The legendary Naigra Falls straddles the Niagara River between Ontario and New York.

According to Investment Executive,  “The Ontario government says that the new Payday Loans Act, 2008 will enhance consumer protection by licensing all payday lending industry operators and banning controversial lending practices.

 Payday Lenders will be required to include all charges consumers are required to pay, a cooling-off period; and, operators will contribute to a public education fund on payday lending”.Apparently, the Canadian Payday Loan Association (CPLA) welcomed the passage of the Ontario legislation. This looks to be a good compromise for the industry. Unlike the Ohio bill that appears to be overreaching.The Ohio Payday players should have looked to the Ohio bill as an example of a “good compromise”