The Formula for Reducing Borrower Acquisition Costs

A Common Problem in Peer to Peer Lending

Marketplace lenders provide a valuable service by filling in some of the gaps for good loans that banks and brick and mortar finance companies can't or won't do. They have a problem across the entire industry here in the US; Borrower Acquisition Costs.

Since most of the lending platforms are small businesses themselves looking to scale up the costs are even higher at this stage of the business cycle as more is spent on marketing and operations in the name of growth.

Blogging for Lead Generation

One of the best low-cost methods for lead generation for a marketplace lender is through blogging specifically and newsletter, case studies, and other online content more generally.

Some Cool Stats

Here are some stats on the power of online content:

B2B Marketers that use blogs get 67% more leads that those that do not. (Source: Hubspot). Small Business and Real Estate lending platforms, this means you.

Blogs are more highly trusted for accurate information online than many places that might surprise you. Blogs are the 5th most trusted source of information online (Source: Search Engine Marketing). Your message goes right to your customers and their friends and they share it.

Internet users in the US spend 3x more time on blogs than they do on email. (Source: Hubspot). Potential borrowers could be using some of this time on your blog on your website and the added credibility a blog brings could easily lead to a new online application.

Between 70%-80% of users ignore paid ads and ONLY look at organic search (Source: Search Engine Journal). More online content like blogs and case studies mean higher ranking in organic search for multiple keywords.

Our Own Infographic

Some of the statistics were so telling that I created an infographic to show them off.

Lower Borrower Acquisition Costs with Online Content

 

 

From a couple of these frames you can see that content generated leads close at a higher rate than traditional marketing and for less cost per dollar than those same forms of marketing. It builds on the network effect you are already working on with your site through numerous investor and borrower logins and links from sites like this one. Anything that makes your site more visible and easier for more people to apply for a loan more easily is good for your platform.

Interested in learning more about a custom content strategy? Go here and check out examples of my work.

 

Interested in a copy of this infographic? Download here  

And when you share please link back to this site.

Whether its a blog, case study, newsletter or landing page for a specific service, quality online content builds on itself and helps you do more business.

 

 

About the author

Stu

Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending.

Check me out on Twitter, LinkedIn and Google+

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