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Why Passive Income Is So Important For Any Payday Loan Affiliate Program

By October 28, 2018 No Comments

 Teri Marin


Evolutions On The Payday Loan Market

Affiliations and mergers are a common strategy and oftentimes, a strict necessity in today’s market in order to increase the chances of survival and profit. Being part of a large network often comes with some major benefits, including resilience and predictability of the business.

This is not an exception for the payday loan market, which is increasingly being dominated by large networks with lead aggregators as central entities and multiple affiliates as cooperation partners. It is easy to argue that is probably the best payday loan affiliate program for a number of good reasons, one of which is the ability to build up passive income over time. The crucial role of this aspect is explained below.


The Importance Of Building Passive Income

        Any advertiser with a broader perspective would be highly interested not only in making immediate profits, but also in securing a future income, at least for the next decade. The best thing a potential lead generator (affiliate) would have to do in this case is to choose an aggregator that is large and successful enough to survive in the long term, but also one that manages to solidify its current partnerships by sharing both its profits and motivation/ responsibility. The concrete ways in which these partnerships can become durable have to do with building passive income.


Key Strategies To Build Passive Income

Two key examples of such strategies to allow passive income and growth of the affiliate are as follows:

  • sharing profit from return clients. A given number of return clients is guaranteed by chance, offering the affiliate the prospect of at least some guaranteed income in the future. If no special efforts are undertaken, the logic is simple – the higher the number of clients, the higher the chances of return clients. However, significant efforts might be needed to attract this type of clients preferentially. This might involve higher advertising costs and efforts for the affiliate (e.g. experimental advertising in specific niches in order to identity such clients), but given that the lead aggregator decides to share profits, the affiliate does have the motivation to experiment and invest.
  • allowing the affiliate to build its own profit network. If the aggregator shares part of the income with the original affiliate for any new partners brought into the network, then the original affiliate would be highly motivated to identify such entities. Importantly, this is very effective in overcoming fear of competition between affiliates, which is one of the main obstacles for the expansion of a lead aggregator. Thus, an expansion model is built, in which each branch seeks independently to expand and capture as much of the market as possible.


By following such basic principles, the affiliates (lead generators) that have been part of the partnership from the very beginning would feel financially privileged and secure and would also identify better with the goals of the aggregator.


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