Payday loan customer research - what conclusions are there for affiliate programmes?
An average borrower is a white American aged from 25 to 44, earning up to $40 000 per year. In 69% of cases, borrowers use payday loans to cover unexpected expenses like medication, car repair or mortgage. Payday loans they get are of small amounts, they are useful, though. Without payday loans they would have to delay their payments, rely on families or sell personal belongings to cover their expenses. Payday loans are most popular in the Midwest and south regions of the US. Around 8% of adult population has used payday loans at least once a year in Texas, Louisiana and Oklahoma. Other states where payday loans are taken most frequently are both Dakotas, Nebraska, Kansas, Missouri, Iowa, and Minnesota.
Affiliate programmes seem to have plenty of new opportunities open thanks to payday loans. But what the reports suggest and what we can observe from the changed laws in certain states not only concerns generating great traffic and leads.
Any affiliate programme entering the US market should take the following into consideration:
- two-level legal system consisting of federal and state laws;
- the changes in state laws are independent of the changes in federal laws;
- federal laws differ from each other in many details. These aspects will affect all the creative materials that will be used to build up databases of leads. Also, affiliate programmes will have to cooperate with the affiliates to work out the rules of conduct on this market, so that the affiliates will not encounter any obstacles from legal regulations. This will have an effect on:
- which payday loan offers appear on each landing page dedicated to a certain state;
- how the product information is presented;
- how the customer is warned of the consequences of loan misuse or excessive use (may be applicable in some states);
- how the customer’s personally and non-personally identifiable information is collected and processed.
Many affiliate programmes do well in the payday loan market, but in longer term it may be advisable to diversify operations to other industries, in which the affiliate programme is only an early but a promising stage of life cycle.