Monetising Declined Applications
As a lender, your business model will be focused on reaching the right outcome for every potential and actualised customer. Unfortunately not every loan applicant will meet your lending criteria, but this does not mean you can’t help those whose applications you have to decline.
Monetising Declined Customers
At Leadtree Global, we are specialists in monetising lender declines, as evidenced by the number of lenders who are currently sending the customers they have not accepted to us. We are always keen to work with more lenders however, and would love to hear from you if you're a lender interested in driving further revenue into your businesses.
Our close working relationships with all of our partners means that we are always searching for ways to make the most money for our network of lenders, affiliates and Authorised Representatives. We pride ourselves in being proactive and dynamic when it comes to delivering the best outcomes to our partners.
We have therefore created options for our lending partners to monetise their declined traffic - sending such traffic to Leadtree Global though an API into our lending panel, or via a decline page with a click through link.
Decline Page Example
One of the most successful ways we have monetised lender declines is through a decline page with links to other lenders. Customers can read about each product and are instantly redirected to a lender upon clicking on the relevant link.
By giving declined customers the option to look for a loan elsewhere, lenders can not only offset their marketing budget, they can also ensure that they are doing everything possible to help those who visit their site. Lenders can additionally rest assured that we conduct in depth due diligence checks with each of our partners, so once an applicant leaves your site, they are still in capable and safe hands.
Declined Customer Case Study
In Q4 of 2019, one of our lending partners achieved great success sending us their declined customers on flat rate through a static decline page.
Below, you can see that Leadtree Global's acceptance rate is above 99% of the declined customers that were sent. These results are only a fraction of what is achievable when you consider this revenue was generated monthly by monetising between 26% and 38% of the declined applications on a flat rate.
Sending Declined Traffic
When it comes to sending declined traffic into Leadtree Global’s pingtree, which is a type of lead distribution software, our lenders can see significant results. We work with a large number of direct lenders across the UK and internationally, many of which will have slightly different lending criteria. This means that customers one lender may decline, another lender may approve.
By redirecting declined traffic to our pingtree, you can help these customers get the loan they need, as well as earn a commission for passing on leads to other lenders. Our lenders currently acquire leads in two different ways:
CPA (Cost Per Accept)
The majority of our panel operate on a CPA basis, paying between around £0.50 and £75 per accepted lead. The amount will vary depending on the quality of the lead, and the type of product.
CPF (Cost Per Funded)
Some lenders prefer to operate on a CPF basis, either paying a fixed rate per funded loan, or between about 5% and 18% of the funded loan amount.
Both types of acquisition methods have seen success with our lenders, and some even choose to combine the CPA and CPF methods to find a strategy that best fits their needs.
In a recent case study, one of our partners was able to attract 30% more applications year on year since integrating with Leadtree Global, thanks to the monetisation of their declines. This included both adding a declined page and redirecting their declined traffic.
Since implementing this strategy, it has helped to achieve:
- Monetising 33% of the leads that are brought in
- Reclaiming 30% of the monthly marketing budget
- A 20% decrease in cost of acquisition
We’ve already helped multiple lenders monetise their declined applications, and we’d love to continue to grow this network! If you represent a lender hoping to make a profit from loans you’re not able to fund, simply get in touch with Leadtree Global today.
No set up fees, easy integration and real time reporting.
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