Leadpile’s Blog

It seems all we ever read about is the “negative” about the payday loan industry, however there seems to be some positive momentum happening for payday lenders. Are people finally seeing that there is a need to help those consumers that are paycheck to paycheck? Americanbanker.com is reporting some positive news for the overly criticized payday loan industry.
Are lenders closing up store fronts to help cut costs, and therefore going to be utilizing the internet more to generate their business? For some, the answer it yes. Future growth for many payday lenders is probably going to be in the alternative products that many are getting into to help diversify their portfolio. Launching new products such as pre paid credit cards and bill pay services are some of the products that payday lenders are either getting into, or have already tapped into. This is great news for the longevity of the payday lenders. So what are these payday lenders going to be doing in the states where the payday loans are banned? Getting into ownership of pawn shops appears to be the direction many lenders are going in states such as WA and AZ. Lots of positive things happening, and we are anxious to see how Leadpile will be apart of the future success of the lenders.

Although there has been some controversy over the new iphone, Apple isn’t going to stop pushing out their products. Apple has new merchandise to offer their users, and many are already excited about the new options.
Starting at $69.00, Apple users will be able to purchase a trackpad that is designed to give the MacBook Pro touchpad experience. Also coming out next month is the new Apple Mac Pros desktop with quad-core and 6-core intel Xeon processors. These desktops will be selling a $2,499. The new iMac is going to be available starting at $1,999. Another product that will be available to consumers from Apple is a 27″ LED cinema display screen for $999 that is compatible with other Apple products. Many businesses such as Leadpile use Apple products and are anxious to continue use of the brand.

Lets continue the debt discussion since it’s such a large part of peoples lives nowadays.

Ever feel as if there is no end in sight to all those piled up bills? Here are 2 plans that may help you get your finances back on track.

1. Snowball Plan: The snowball plan developed by Dave Ramsey focuses on ranking your accounts by balance amount, smallest to largest. Consumers are encouraged to pay the smallest debt first while continuing to pay the minimum amount on the other accounts. By doing so consumers enjoy the satisfaction of when debt drops off, thus they are more likely to make continuous payments.

2. Negative Emotion: The negative emotion plan urges people to pay bills that generate a negative emotion. For example, Shareef Defrai from Huston used his credit card to rent a car for a friend. No big deal until his friend decided to skip town with the car, now Shareef has $16,000 in debt for a car he doesn’t even have possession of. By paying off these types of accounts first the relief of paying off the debt can be life changing.

Both methods have their pros and cons, do any of you have a special way you pay down your debt?

It looks like the payday “police” have hit Colorado. There is a proposed payday loan bill that would put an interest rate cap on payday loans. The reasoning behind this bill is that some Coloradans believe, “that excess interest rates can lead Colorado families into a debt trap of repeat borrowing”. There are three separate proposed bills. One would put the rate cap at 18%, another at 28% and another proposed bill putting the rate cap at 36%. The unfortunate thing about these sorts of bill is that the potential rate caps would hurt the payday lenders and potentially not allow them to stay in business. This would then hurt consumers who are looking for a much needed payday loan. We will all be watching the outcome of these proposed bills.

Working in lead generation it is really important to know who your client is and who you are are trying to target. Unfortunately, what happens with many networks/agencies is that they are wrapped up in generating as many leads as they can, they are not focusing on who they are targeting. Knowing the consumer that you are targeting, does it really matter that you don’t know the ins and outs of what the consumer is you are marketing to? Many would say it is not totally important, but I feel knowing as much as you can about your target market/consumer can make or break the effectiveness of your marketing campaign.
APNews seems to agree. “The independent Marketing Tracking & Maximisation Specialist also found that Marketers around the world classify ad agencies into three groups: (1) the Result-Drivers who truly believe that the primary purpose of a campaign is to deliver the bottom line results of their clients, and do whatever they can for that (35%); (2) the Result-Pretenders who claim they believe in making campaigns that deliver results, but are internally not prepared to put in place the relevant systems and processes to do so (43%); and (3) the Dreamers who still live in old “Adland” (22%).” There were also 3 weaknesses identified in those that are not truly focusing on the actual result of their consumers:
1. The customer insight is not deep enough
2. Too award driven and not enough customer focused
3. Not effectively tracking to know what is working with each media campaign

Bottom line: know your customer and what advertising is working effectively. This applies to lead generation or any other marketing techniques where you are trying to target consumers.

A new bill has passed in Virginia setting new guidelines for car title loans. This bill will enforce caps on interest rates and loan terms which is something that has not been done before. Similar to a law in Tennessee the loans are restricted to a year in length, restrict the loan amount to half of the car’s value in addition to preventing new interest being added onto the loan once the car has been repossessed. A tiered interest rate cap will be put into effect, running from 22 percent per month for a loan smaller than $700, to a maximum 15 percent for loans higher than $1,400.
Car title loans are a topic of controversy lately in a similar way to payday loans. The loans both help consumers who are in need and would not have other options, but can be at times tricky for consumers to understand if they are not taking the time to read the terms. The consumer needs to always be aware of the terms of the loan and the interest rate they will be paying. If applying for a loan, being as educated as possible can help the consumer know all options available and prepare/make a plan to use the loan responsibly.

Being in the lead generation business it is key to understand consumer trends and what they are doing. Knowing this helps to create new offers to help connect them with the service provider(s). However, are we seeing more consumers buying online now versus going directly to the store?
Permuto.com is stating that some areas of consumers purchases have gone up online, while many consumers still remain loyal to their local stores. The biggest gap I am seeing is with the drugs and health aid category. Is this a trust issue with trying to get the proper medication from places such as a drugstore versus an online site?

So how does a company like Leadpile and ecommerce sites get more people online purchasing services and items they need for their every day lives? Is there a “secret sauce” that will bring more people online, or is it simply with time more and more people will start trusting online purchasing as a safe way to get things they need?

Facebook is saying goodbye to banner ads supplied by Microsoft, and HELLO to more targeted ads. Internews.com reports, “Facebook, which counts nearly 400 million users, said its own display ads feature interactive aspects and can target viewers based on their personal information, making them better suited to its social networking service than Microsoft’s standard Web banner ads. Ad formats that feature social actions perform better and provide a better user experience since they are more consistent with the look and feel of Facebook,” the company said in a statement. This combination of targeting and social relevance is the primary driver behind the shift in strategy.”
This change will probably not affect Microcsoft, but it brings up a good question on taking control over your page and what the user experiences. Facebook is obviously concerned with the experience the consumer goes through, versus a deal they have with Microsoft. Is this something of the future where companies really pay attention to the consumer experience versus making the most money on the ads they choose to display? Leadpile has an ability to supply banner ads for it’s publishers, however a website owner caring about the consumer experience is something we are very much concerned with also. Consumer experience or make more money????? What is the answer you believe is right?

House prices have not been on the rise for six straight months in a row. Fourteen out of twenty metro areas saw an increase in homes from the month before. As of November, 2009 was up 3.4 percent from its lowest back in May, 2009. Phoenix (Arizona) and San Francisco (California) have had the highest month over month increase in their housing markets. Both New York and Chicago had the largest declines in the nation. One of the largest reasons for the increase was the first time home buyer tax credit. With the original end date for the tax credit being in November of 2009, there was a rush to purchase a new home (the tax credit ended up being extended to the spring of 2010). The tax credit was a huge incentive to purchase a home, and with the home prices in Arizona being so low, it makes sense that Arizona saw one of the highest increases in their housing markets.
One of the big questions is if the trend is going to continue to increase? Some economists believe that there is going to be another dip in the housing market because of the the high rate of unemployment and foreclosures. It is expected that we will see these results in the beginning of this year. It goes without saying that now is the time to buy. Depending on the area, people are seeing move in ready houses for as low as $50,000. That is less than a college education!
If you find that you are one of the many who are having trouble keeping your home you may want to consider a loan modification or debt consolidation. Leadpile is trying to do it’s part by matching up the consumers with lenders on a daily basis! Heck, we want the economy to be better too!

Those five words seem to be to most said that day after the Super Bowl. It seems as if people are more interested in watching the new television ads rather than the actual Superbowl (unless your team is playing or you have money riding on it, of course!). This year does not seem as if it is going to be any different. According to a Nielsen survey, 51 percent of viewers are more interested in watching the Super Bowl for its ads, rather than the actual game. The survey also shows that viewers are more likely to remember the ads that are shown in the first quarter rather then the second, third, and fourth (the fourth having the least recall, only at 25 percent). Most of the ads that show in the fourth quarter tend to have similar ratings to a regular television commercial.
So how much cash is being shelled out this year? For a thirty second spot, it will cost an advertiser three million dollars. When spending that type of money for such a short period of time, advertisers are trying harder than ever to make sure that their commercials are remembered. Companies such has Papa Johns got creative by taking this years Super Bowls roman numeral and turning it in to a new pizza offer. Super Bowl XLIV will now be a Papa Johns Xtra Large four(IV) topping pizza. Boost Mobile is giving consumers a sneak peak of their ad on YouTube, for hopes that it will create excitement and buzz before it is aired during the game. Brands are also trying to use social media more for their Super Bowl advertising. Marketers are realizing that social networks is a great way to have people buzz about a product and get the word around.
It is interesting how on a daily basis so many of us will skip through the commercials, but for the Super Bowl we sit down to watch them. Some of the big players that you will see this year will be Frito-Lay, Boost Mobile, Diamond Foods, and many more. It is very important that brands are taking the time to make sure that they are remembered and are coming up with new and creative way to advertise. LeadPile has also been working hard to create new successful offers, however unfortunately we will be sitting this one out with advertising during the Super Bowl. Wishful thinking uh?
Now the only real question is, are you going to be watching it for the game, or the commercials?

The last time I checked, everyone was still saying that we were still in a recessions. So why has there been a increase in smartphone sales and a huge push for big screen TV’s? Frankly, just because people want them. It is true that many consumers have been cutting corners here and there, but it is where they are cutting that is showing changes.
Most people find it very easy to switch from a name brand food to the store brand, or maybe hold off on that new pair of shoes that you have been eyeing in the store window. However, when it comes to electronics, it seems that consumers just don’t want to cut back. They buy the newest smartphone or upgrade to the new version without even thinking twice. This has been great for the technology companies seeing an increase in their sales even in the tough economy.
A lot of consumers are finding themselves trying to rationalize their electronic purchases. They upgrade to a large HD flat screen TV saying that they will stay in more and watch a movie, rather than going out to a movie. Even just switching from a regular DVD player to a Blu-ray player is something consumers are not thinking twice about. The next big electronic buzz you are going to hear about….3D TV. It really was only a matter of time before something like this was going to hit the shelves. 3D televisions are set to hit the shelves in most stores mid 2010, and experts are estimating there potentially to be 4 million sold this year.
The real question is if this is all really necessary? Smartphone are great. We use them at LeadPile all the time to get back to our clients when we are on the run, but a 3D television set? Really? I have a feeling they are not going to be as awesome as everyone thinks. What do you think?

With the holidays finally over and a week into January, it is about time that we get that one last present from the credit card company. What might that present be you ask? A nice fat bill. Whether you did your holiday shopping in the stores or at the comfort of your home online, so many of us just go swipe, swipe, swipe all season long. It really is the the fastest and most convenient way to make a purchase. Sometimes you do not even realize how much you have racked up until it is all down on paper. More times then not, individuals will not be able to pay off the whole bill in one lump sum by the time that the bill is due.
Below are some helpful suggestion for when you realize you have bit off more than you can chew:

1. Use credit cards that offer cash back for purchases – You can put the money you get back towards your credit card bill.
2. Know your interest rate and try to use the card with the lowest interest rate.
3. Do not just pay the minimum balance due – Often that minimum payment will only cover the interest that was charged that month.
4. Get a balance transfer – transfer to a card that offers you a lower interest rate/reward programs.
5. Create a feasible payment plan and stick to it.

In some instances where you find that you are getting into too much debt, try to not feel overwhelmed and that there is no way of getting out of it. There are several options out there to get you back on your feet. For example, debt consolidation or debt settlement might be the perfect solution. Everyday at LeadPile we are matching consumers to debt professionals who are there to help you get the professional advice that you may need. Maybe consider getting help if none of the above options really worked out for you.