One of the most lucrative and popular verticals in affiliate marketing is financial loans. Its popularity is easy to explain – attractive commission rates (up to $100 per quality lead) and high demand make it an ultimate profit-winning tool. What is more, the bank loan market is evergreen; alas, financial problems are a part of the reality we live with and they are not going anywhere anytime soon.
Here at BizProfits, we have a wide range of CPL loan offers to choose from. Before you decide which ones to start promoting, we’d like to tell you more about each subcategory and what kind of customers it is likely to attract.
One common characteristic of all loan offers is that the application process occurs online and takes relatively little time (compared to the time it takes to apply at a bank). Potential clients really like the discreetness of applying online rather than facing possible embarrassment of applying in-person.
The specific features of each loan differ depending on the offer type:
Payday Loans (AKA “cash advances”)
A payday loan is a relatively small amount of money borrowed for a short time (usually, until the next paycheck arrives). In essence, it is just a quick buck to cover rent or an emergency medical bill. Credit history of applicants is checked less frequently, which gives every customer a chance to get money. Their employment status and monthly income are subject to verification, but the qualification threshold is rather low. The interest rate on such loans is usually high.
Mortgage Loans (AKA “liens against property” or “claims on property”)
A mortgage loan is a loan taken for the purpose of buying real estate, which serves as collateral until the money is repaid in full. Mortgage loans are notable for extremely long repayment periods and individually defined interest rates. Needless to say that mortgage loans are provided only to the most financially reliable applicants.
Debt Relief (AKA “Credit Card Debt Relief” or “Debt Settlement”)
Debt relief networks match desperate borrowers with professional debt relief providers that can help them reduce the amounts they owe. In the long run it may impair their credit scores, but in the immediate perspective it helps individuals to deal with debt rather fast and effectively.
Credit Score and Credit Repair
These two subcategories make up a perfect funnel. First, customers can find out their credit scores (at any time, not once a year as available in the US credit bureaus) and then repair the scores using professional credit repair services. One’s score can be low due to various reasons (technical errors, etc.), but with credit repair they can restore their solvency in the eyes of banks and count on more lucrative interest rates.
Personal Loans (unsecured or secured)
A personal loan is usually bigger than a payday one and has a longer repayment period (typically paid back in installments). They are frequently used for small purchases, vacations, renovations and other urgent or not-so-urgent personal expenses. Personal loans can be unsecured, i.e. requiring no property to be used as collateral, or secured with collateral of a certain kind. Auto title loans are an example of secured personal loans where an applicant offers their car as collateral, which will be repossessed in case of non-payment.
Generally, to qualify for a personal loan, an applicant should have acceptable credit history and monthly income, which will define the amount provided.
For an affiliate marketer promoting this vertical, the way a commission is accrued for each of the offers is just as important as their types. Yet the mechanism is not as straightforward as it might seem at first glance.
A small part of loan offers (e.g. Free Score Finder) works under the good ol’ free trial scheme. For you to get a commission, a customer has to claim a free trial of certain professional services. Nothing complicated here.
For the rest of loan offers, to get a commission you need to provide enough leads to cover a certain CPA goal (set in a money equivalent). The quality and value of each lead are defined by the advertiser (they use a variety of evaluation factors like credit scores of applicants, etc.). Therefore, one lead does not necessarily equal one payout. If a CPA goal for a certain offer is $30, you can provide three $10 leads and get one payout OR provide one $60 lead and get twice as much.
Therefore, it is all about the leads’ quality rather than the number – make sure to take this into account.
Please do not hesitate to contact your account manager should you need more information on CPA goals for particular offers. In the meantime, we will be adding new offers and subcategories to this vertical to make sure you can engage even the least promising part of your audience.
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