Payday loan subsidiaries do not actually fund payday loans. Rather, they bring them in search of payday loans for a specific payday loan source. These subsidiaries are paid by the loan franchise, but are not actually employees or subsidiaries of the franchise itself. For all purposes, payday loan is affiliate and lender partners.
Basically a payday loan affiliate routes customers from their own site which has nothing to do with payday loans that the loan website. A payday loan affiliate site can use advertising or marketing techniques to get customers to click on the lender’s link. The affiliate then happens per click or per application filled out, depending on the agreement between the affiliate and the lender. In some cases, the affiliate is paid not only for the clicks or the application, but also paid again for the loans actually made.
Using Search Engine Optimization (SEO) techniques, payday loan affiliate attempts to find ways in which their site to rank high among the searches that help direct more customers to their site. This will again. Resulting in several clicks on the lender’s website Internet marketing or advertising skills can also be an advantage in leading more customers to the lender’s website.
Lenders pay a third company to track incoming customers, which means affiliates do not need to monitor traffic. Lender considers the partnership a cost of running a business because they make more money on interest charged to customers than they pay to the affiliate and tracking company. Lender Then expect the customer to apply for additional loans and bring other traffic from mouth to mouth.
The payday loan affiliate has very low initial costs. The potential partner must have a domain and a moderate to high traffic site. The higher the traffic to the website, the greater the chance of redirecting the journey to the lender. The affiliate should also have an audience that would tend to need or want payday loans. The affiliate then contacts a payday loan franchise to establish the partnership.