[dave.lendio]

Lendio is setting records!

[Chambo]

You went from 3 leads to 6 leads? Congrats, you doubled....100% growth!

How abotu some REAL data instead of hype?

[dave.lendio]

Chambo is a comedian

[MCNetwork]

Fact. There's a lot of smoke and mirrors here! Caveat emptor!

[dave.lendio]

No smoke here MCNetwork. Why don't you come visit and see for yourself? We are open daily? The funny thing is that I have my phone number right on here. What does MCNetwork mean? Are you a lender? If so call me and discuss?

[JayBallentine]

Fact. There's a lot of smoke and mirrors here! Caveat emptor!

Yes there is. They have excellent product design and Dave is a great salesman. However, they haven't figured out how to generate leads yet. The problems are that:

1. They don't want to spend money on high quality lead generation.
2. Why they haven't optimized a funnel to include the Yodlee API's so as to sell completed applications where the merchants knows "ok, I'm probably going to get a 1.38" is beyond me.
2. They want to sell each lead one time, to 4 different funders.
4. Lendio needs to figure out who it's customers are. Are they the merchants, or are they MCA?

An offer was made to someone I am very very very close with to buy leads from said person at $30 each.

What's funny is that, Bank of America, Chase, Wells Fargo have zero need to buy leads from Lendio. They are doing everything in their power to decline as many deals as possible!! lol

Lendio's only market is the alternative finance / merchant cash advance. Unlike SomoLend, SmallKnot, and others, they didn't spend as much time getting to learn this industry as they should have.

While I think "buying leads" makes as much sense as showering with a raincoat, this is the only market where Lendio has a shot at turning into long-term customers. They are also misleading merchants with PPC campaigns that say; "Government Business Grants." This entices the merchant to click on said PPC ad to which they will sell YOU the lead as someone who is NOT looking for free money. You call them up, and they either don't qualify or are insulted by your offer.

Lastly, Dave is a good guy. A genuinely good guy, and a gifted seller. Many of you need to be making the guy offers so he has a golden parachute. My issue is not with Dave, it's the fact that Lendios' name should be "Joke-io."

[MCNetwork]

While I think "buying leads" makes as much sense as showering with a raincoat, this is the only market where Lendio has a shot at turning into long-term customers.

Well there is an acquisition cost for every customer. Buying a lead is no different than spending on SEO, Pay Per Click, mailers, and telemarketing campaigns. For many smaller ISOs, buying a qualified lead is a more cost effective method at getting customers than spending 25K+ a month on various marketing efforts and seeing what sticks. Even the big ISOs and direct funders out there use a multi-pronged marketing approach that almost always includes purchased leads.

[JayBallentine]

Well there is an acquisition cost for every customer. Buying a lead is no different than spending on SEO, Pay Per Click, mailers, and telemarketing campaigns. For many smaller ISOs, buying a qualified lead is a more cost effective method at getting customers than spending 25K+ a month on various marketing efforts and seeing what sticks. Even the big ISOs and direct funders out there use a multi-pronged marketing approach that almost always includes purchased leads.

I totally understand where you are coming from. However, feel free to private message me your e-mail. I'll send you some hard data on Lead Generation. In the mean time, check out this study: published by InsideSales and conducted by MIT: http://www.leadresponsemanagement.or...lrm-survey.pdf. The takeaway is that leads go bad after 30 minutes. The best leads (highest converting) are contacted within 5 minutes.

You make solid points about guys spending gobbs of money on stuff that don't work. You should also note that there IS NOT A SINGLE COMPANY in MCA is executing on ALL of the basics. The basics drive down lead generation costs, enhance quality, and response times. The basics include doing ALL of the following:

1. Separating your web site from your landing page. Your landing page should have very few words. The best landing pages feature a video. Your landing page should be optimized to convert. Here are some examples; http://cash.cashpickle.com and http://www.paramountmerchantfunding....FUQw4AodaVMASQ - Please do not take my word for it. Measure their page performance on Compete.com

2. E-mail / blog marketing. It costs about $50 a month to keep a list of 25,000 e-mail addresses where you can send as many as you'd like. You can even use pre-designed beautiful templates. No need to pay a designer or CSS guy. Sending merchants quality information - which can simply be links to useful content, depending on merchant type is pure ROI. It keeps your brand in front of the merchant, whether they need the money at that moment or not. When they do, they'll CALL YOU!

3. Video - The data is in, video is king, especially on mobile devices as text is increasingly harder to read. RetailCapital.com is the only one to nail this. Now think about having someone on your staff, take their iPhone go into their office and record weekly video casts featuring useful information that your employee found on the internet.

4. Long tail PPC and Long tail SEO - There are a ton of long tail words no one is buying PPC on. Think about what the human is searching for. They are searching for a solution to their problem. So they may not put in "small business loans" or "business loans" all the time. There are a few dozen keywords that have little to no competition, where guys can get top position for less than $2 per day. Not $2 per click. $2 per day.

5. Connect first. Close first. - It takes on average an hour for MCA guys to get back to leads. You buy PPC, and pay $50 for that click to respond an hour later? It's insane. So that's why we make that connection automagically, in 20 seconds.

Lastly, the most effective / cheapest way to qualify a customer is to dominate math. As of Monday, for a big dog in the game, we will be delivering 500,000 voice mails at one penny each to auto repair, plumbing, and similar businesses. Our attention to detail is such that:

1. We target those businesses by those likely to have a simple answering machine.
2. Include in the message a local phone number which forwards to whatever phone number our client has designated.
3. Using voice talent that sounds local. In other words, southern calls will get messages left by professional southern voice actressess, who are leaving what sounds like a local number for the merchant to call back.
4. Messaging is targeted to the three regions where all the search activity for "business loans" and "small business loans" is coming from.

Messages get delivered at 1 penny a pop. A half of one percent response rate is 2,500 in bound calls out of 500,000 messages. This particular client has data that suggests they convert 7% of their inbound calls into closed deals. If that holds true, they have generated 175 deals for an upfront cost of $5,000. This is why I personally feel like buying leads makes as much sense as wiping before you squat. I am completely biased.

I dont think this particular client will ever spend more than $5k per month on marketing again.

[Sean Cash]

A lot of interesting data is being thrown around in this discussion. Jay, I was wondering if a lead dies in 30 minutes, how do you handle all those merchants cruising the internet from 10pm to 2am for business loans? Is waiting until the morning to contact them too long? I'm not being sarcastic. I am really curious as to what your answer on this would be.

[MCNetwork]

They are also misleading merchants with PPC campaigns that say; "Government Business Grants." This entices the merchant to click on said PPC ad to which they will sell YOU the lead as someone who is NOT looking for free money. You call them up, and they either don't qualify or are insulted by your offer.

Yes you can definitely generate 10,000 leads this way. Too bad they're all worth jack!

[Sean Cash]

Let's not all gang up on Lendio here. I know several companies that are very happy to be working with them and find their leads to be profitable.

Lendio didn't get to the size they are by peddling junk. Just because it didn't work for somebody, doesn't mean it doesn't work for everyone else.

Jay does have a unique perspective on everything and I think it's good to hear an opposing view on how best to acquire customers. There's no need to battle for turf though. In case you haven't noticed, every ISO and funder in this industry is looking for ways to do more deals so you can peacefully co-exist.

It's the guys with hotmail addresses that talk about steaming hot leads and there being "1 spot left" with a paypal address in the philippines that are deserving of our wrath.

[MCNetwork]

Hey...quit hating on the Philippines!

[Sean Cash]

Indonesia better? Nigeria? China? Malaysia?

[Scott Williams]

If a lead companies leads were that incredible....they would set up their own retail sales division and close their own leads and make a lot more money.

[Chambo]

If a lead companies leads were that incredible....they would set up their own retail sales division and close their own leads and make a lot more money.

Truer words have never been spoken

[Capital Stack]

Lendio was actually formerly FundingUniverse and they had a sales force of 40 guys. they know how to sell and market. After the company took on a few VC's they deployed their technology and changed the business model.

Ive been down to their office twice, and know all the principals personally. They are great ppl!!

[dave.lendio]

Jay,

We are not where we are without our clients seeing success! While I appreciate your comments regarding me and I echo them about you, it concerns me when people assume things based on incomplete information about us. The fact is, at the end of the day there has to be an effective ROI for your marketing spend that gives you an effective cost per acquisition. If this model that we have nearly perfected works for the largest lender in the market, and it works for the smallest lender in the market, well then I am sure we can handle most, assuming that they have a competent sales-team.

There is an effective metric for lenders to make each dollar spent with Lendio an effective campaign, and what we see is that with the majority of our lenders, that metric in relation to their sales ability and our lead-flow's effectiveness does in fact work. Otherwise we would be unable to renew clients and further keep them for years. (factual statement as some of our lenders have been with us from the beginning spending thousands of dollars per month)

I appreciate your knowledge and i think many points are valid. I do not profess to know all there is to know about this industry, and I am learning every single day. I do know that the vast majority of my clients are happy and are renewing.

Appreciate your feedback!

[dave.lendio]

Thanks David! We appreciate your business!

Lendio was actually formerly FundingUniverse and they had a sales force of 40 guys. they know how to sell and market. After the company took on a few VC's they deployed their technology and changed the business model.

Ive been down to their office twice, and know all the principals personally. They are great ppl!!

[MCAVeteran]

Jayballentine- PM me your contact info.

[JayBallentine]

lendioppc.jpg

Judging by this picture, and based on the questions, the Obama admin has set up a merchant cash advance program. Lendio has insider knowledge.

[Chambo]

What does the government care about your MONTHLY CC volume? This is a fillable add for MCA disguised as a Gov't Loan?

I know I didn't finish law school, but isn't there a law against deceptive advertizing like this?

[Sean Cash]

I know some people are trying to take shots at Lendio, but they don't work exclusively with the MCA industry.

"185 new lending institutions joined the platform in 2012, including 106 banks and credit unions along with 79 new alternative lending institutions." - Source Feb 5, 2013 press release.

Just because an MCA funder can't get them government backed money, doesn't mean that Lendio's network of lenders can't.

[Finance1]

Lendio is a lead generator with a broad net. The only purpose of a landing page is to obtain lead information. What they are doing is marketing 101 and it's totally fine.

[Chambo]

that's why I don't give legal advice...

[fastcash4u]

I totally understand where you are coming from. However, feel free to private message me your e-mail. I'll send you some hard data on Lead Generation. In the mean time, check out this study: published by InsideSales and conducted by MIT: http://www.leadresponsemanagement.or...lrm-survey.pdf. The takeaway is that leads go bad after 30 minutes. The best leads (highest converting) are contacted within 5 minutes.

You make solid points about guys spending gobbs of money on stuff that don't work. You should also note that there IS NOT A SINGLE COMPANY in MCA is executing on ALL of the basics. The basics drive down lead generation costs, enhance quality, and response times. The basics include doing ALL of the following:

1. Separating your web site from your landing page. Your landing page should have very few words. The best landing pages feature a video. Your landing page should be optimized to convert. Here are some examples; http://cash.cashpickle.com and http://www.paramountmerchantfunding....FUQw4AodaVMASQ - Please do not take my word for it. Measure their page performance on Compete.com

2. E-mail / blog marketing. It costs about $50 a month to keep a list of 25,000 e-mail addresses where you can send as many as you'd like. You can even use pre-designed beautiful templates. No need to pay a designer or CSS guy. Sending merchants quality information - which can simply be links to useful content, depending on merchant type is pure ROI. It keeps your brand in front of the merchant, whether they need the money at that moment or not. When they do, they'll CALL YOU!

3. Video - The data is in, video is king, especially on mobile devices as text is increasingly harder to read. RetailCapital.com is the only one to nail this. Now think about having someone on your staff, take their iPhone go into their office and record weekly video casts featuring useful information that your employee found on the internet.

4. Long tail PPC and Long tail SEO - There are a ton of long tail words no one is buying PPC on. Think about what the human is searching for. They are searching for a solution to their problem. So they may not put in "small business loans" or "business loans" all the time. There are a few dozen keywords that have little to no competition, where guys can get top position for less than $2 per day. Not $2 per click. $2 per day.

5. Connect first. Close first. - It takes on average an hour for MCA guys to get back to leads. You buy PPC, and pay $50 for that click to respond an hour later? It's insane. So that's why we make that connection automagically, in 20 seconds.

Lastly, the most effective / cheapest way to qualify a customer is to dominate math. As of Monday, for a big dog in the game, we will be delivering 500,000 voice mails at one penny each to auto repair, plumbing, and similar businesses. Our attention to detail is such that:

1. We target those businesses by those likely to have a simple answering machine.
2. Include in the message a local phone number which forwards to whatever phone number our client has designated.
3. Using voice talent that sounds local. In other words, southern calls will get messages left by professional southern voice actressess, who are leaving what sounds like a local number for the merchant to call back.
4. Messaging is targeted to the three regions where all the search activity for "business loans" and "small business loans" is coming from.

Messages get delivered at 1 penny a pop. A half of one percent response rate is 2,500 in bound calls out of 500,000 messages. This particular client has data that suggests they convert 7% of their inbound calls into closed deals. If that holds true, they have generated 175 deals for an upfront cost of $5,000. This is why I personally feel like buying leads makes as much sense as wiping before you squat. I am completely biased.

I dont think this particular client will ever spend more than $5k per month on marketing again.

i would be interested in hearing more about the above conversation