Payday Loan Industry Newsletter,
Multiple Methods of Making Money in the Payday Loan Industry
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Read a few of our previous Newsletters here if you missed them. The focus of our last few Newsletters
was :
Making Money in the Payday Loan Industry
Payday Loan Collection Services SCAN
Payday loan Convention & Developments
The Future of the Payday Loan Industry".
The National Bank Model".
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Making Money in the Payday Loan Industry
By Jerry Ayles
The majority of us are unaware of the multitude of ways an entrepreneur can make money with payday loans. Often we
are so focused on our own passion, skill and knowledge base that we fail to comprehend other methods of monetizing our
expertise and understanding of this dynamic industry. This brief discussion will discuss a few of the ways we can
develop multiple revenue streams all utilizing the payday loan product. If you and your team are uncomfortable or
unwilling to fund payday loans be advised there are a multitude of ways to make a "ton of money" in the payday advance
industry. (Note, this list is in no particular order.)
- Funding Payday Loans. Of course this is the obvious method most of us employ to maximize our returns. We form a
corporation, get a license where appropriate, we open our store, utilize advertising and signage to draw customers
and fund the payday loans ourselves. This "brick-n-mortar" model still works very well. And fortunes are still
being made with this approach.
- .Utilizing the Internet. Consumers in the USA, Canada, Australia, New Zealand, the Caribbean, England, Ireland, and
more demand access to our payday loan product. However, not all consumers have the ability to simply walk into their
neighborhood cash advance store and receive one. We are all aware of states having unfavorable payday loan legislation.
Millions of payday advance consumers are forced to use call centers and web sites of companies outside the protection
their state may offer or the "best-practices" promoted by http://www.CFSA.net and http://www.FISCA.org . And, let us
not forget the value in combining a "brick-n-mortar" payday loan operation with web sites. The "big guys" in our
industry have figured this out and purchased existing payday loan Internet companies. We perceive the major value
in their taking this approach was the fact these payday loan Internet companies had pursued and secured multiple
state licenses. In any event, it only makes sense to use a web site in conjunction with your "brick-n-mortar(s).
Fund the loan applications submitted via your web site by residents of your state/province and simply sell those
from locales you prefer not to do business in. (See Affiliates)
- .Payday Loan Leads. There are millions of dollars being made collecting and brokering payday loan leads and
applications. (See Affiliates)
- .Consulting. There is a tremendous demand by entrepreneurs to get involved in the payday loan industry. Their
thirst for knowledge regarding the software, licensing and legislation, store location, web site development,
ACH processing, stored-value and prepaid card deployment, compliance, and on and on has no end.
- .Affiliates. There has never been more money being made in the payday advance industry by entrepreneurial companies
and individuals that never fund a single cash advance! Ten's of thousands of dollars are made monthly by simple
creating a web site to gather payday loan leads and applications and selling them to payday loan companies willing
to actually fund the loans. Today, these leads and applications sell from $3.00 ea to as much as $55 each depending
on volume, filtering, quality, source, and any due-diligence performed prior to the sale. Just one example is that
of a payday loan lead generation entity selling 50,000 payday advance applications per month at an average of $9.00
each. And the buyer claims to be funding 40% of these leads! We estimate less than 10% of the payday loan web sites
on the Internet today actually fund payday advances! It is extremely easy for an entrepreneur to simply build a web
site(s), become an affiliate at http://www.cj.com to immediately begin selling payday loan leads to advertisers.
Additionally, one can set up a Google Adense account and earn approximately 30% to 50% of the income Google receives
for each click (currently $7.02 per click for position #1). Last month 294,000 searches were performed at Google for
the term "payday loan." Of course, this count does not include all the other permutations for "payday loan" such as
"payday advance", "cash advance" "payday loan cash advance", "no teletrack payday loan", and many, many more. Nor does
this include searches performed at other search engines such as Yahoo, AOL, Earthlink, MSN, etc. Our research yielded
more than 1,000,000 searches last month for the term "payday loan"!
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- .Vendors. There is no limit to the various products and services one can offer to payday loan operators and consumers
of cash advances. Creativity is the key to developing continuing revenue in our industry. Payday loan operators need
creative solutions for meeting compliance issues, creating complementary products, advertising and marketing, collections,
solidifying relationships with payday loan consumers, customer identification, customer employment validation, bank
account and ACH verifications, security, insurance, store layout, web site and software integration including
http://www.Teletrack.com and http://www.CheckDataSystems.com .
- .Investors. Astute individuals and organizations with a desire to put money to work at favorable interest rates do
exist. We receive inquiries from them daily. Those deals involving no equity typically earn returns of 2% to 5%
interest paid monthly. The key for both the payday loan operator in need of funds to meet demand and potential
investors is to research and understand the payday loan product thoroughly, develop specific criteria for the
investment or use of the funds, and a complete assessment of the ability of both parties to work together.
Finally, all agreements must be put in writing.
- .Education. Opportunities for helping payday loan operators to increase revenues and meet compliance and
legislative issues abound. Again, topics covering marketing, advertising, collections, compliance, accounting,
insurance, fraud, investing, debt servicing, complementary products and services, customer relations,
legislation ( http://www.PaydayLoanLegislation.com ) are just a few of the subjects payday advance operators are in need of.
- .Franchising. Entrepreneurs are clamoring for information regarding how to get started in the payday advance
industry. Independents desire a strong brand and well-organized operations offering terrific and timely support.
Turnkey payday advance models will yield the greatest monetary success.
- .Trade Organizations & Magazines. It is shocking to realize how many existing and prospective payday advance operators,
vendors and suppliers are unaware we have trade organizations and magazines. Visit and support http://www.Fisca.org
and http://www.CFSA.net. And, do not forget our trade magazine, Cheklist Magazine at 212-807-0148. Cheklist Magazine
maintains a list of state payday loan and check cashing associations.
The bottom line is this: entrepreneurs, training organizations, vendors, suppliers, educators, consultants, and more
all have an opportunity to earn substantial income and recurring revenue streams by participating in the payday loan
industry. Success will come with proper research, a good plan put into action, follow up and adjustments in combination
with integrity and honesty.
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Jerry Ayles is a partner with Trihouse Payday Loans at http://www.PaydayLoanIndustry.com. He can be
reached at jerjer@earthlink.net or http://www.PaydayLoanIndustry.com
This information is discussed further in depth in our Payday Loan Startup &
Training Manual. You may ORDER it NOW. Next Month a
new topic and coverage of more states.
From: Trihouse Enterprises, Inc.
http://www.PaydayLoanIndustry.com
Payday Loans
If you have comments, questions, topics you would like covered...PLEASE contact:
The Payday Guys
PaydayGuys2@PaydayLoanIndustry.com
http://www.PaydayLoanIndustry.com
1-702-889-9555 PST USA
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