[isaacdstern]

The article seemed to leave out that the cost of origination has absolutely gone off the charts in the past few years and in most cases the broker does not make any money on a deal till a deal renews.

This article refers to large lenders going direct and cutting off most of their brokers.

The large lender they are referring to is Ondeck and the main reason the cost of marketing has gone off the charts is because Ondeck has outbid everyone else out there by 20-30% per click.

[FUNd]

The article seemed to leave out that the cost of origination has absolutely gone off the charts in the past few years and in most cases the broker does not make any money on a deal till a deal renews.

This article refers to large lenders going direct and cutting off most of their brokers.

The large lender they are referring to is Ondeck and the main reason the cost of marketing has gone off the charts is because Ondeck has outbid everyone else out there by 20-30% per click.

This is interesting Isaac. What do you mean that OD has outbid everyone? Are you talking about Google AD Words?

[isaacdstern]

quick story here...about 2 years ago we were doing our normal PPC bids at $15 per click and suddenly out of the left field the bid jumped to $20...we did our research and saw that Ondeck was driving the cost up. now the normal practice if you want to outbid someone is to jump the bid by $1 not $5... fast forward to today...the cost per click is up near $35-$40 and because of company like Ondeck it keeps rising.So back to the point of the article...the cost of marketing and origination are literally off the charts and most brokers only see profits once a deal has renewed.

This is interesting Isaac. What do you mean that OD has outbid everyone? Are you talking about Google AD Words?

[Franklin]

quick story here...about 2 years ago we were doing our normal PPC bids at $15 per click and suddenly out of the left field the bid jumped to $20...we did our research and saw that Ondeck was driving the cost up. now the normal practice if you want to outbid someone is to jump the bid by $1 not $5... fast forward to today...the cost per click is up near $35-$40 and because of company like Ondeck it keeps rising.So back to the point of the article...the cost of marketing and origination are literally off the charts and most brokers only see profits once a deal has renewed.

Isaac, how does the cost of marketing via PPC compare with the costs of your other forms of marketing, is PPC more or less expensive?

[isaacdstern]

PPC is far and away the most expensive marketing we do but also the most effective

Isaac, how does the cost of marketing via PPC compare with the costs of your other forms of marketing, is PPC more or less expensive?

[Chambo]

The article seemed to leave out that the cost of origination has absolutely gone off the charts in the past few years and in most cases the broker does not make any money on a deal till a deal renews.

This article refers to large lenders going direct and cutting off most of their brokers.

The large lender they are referring to is Ondeck and the main reason the cost of marketing has gone off the charts is because Ondeck has outbid everyone else out there by 20-30% per click.

Isaac, problem is...nobody gives a rat's ass about the "cost of origination" they didn't when they cried about SBA loans drying up with commercial banks, and they sure as hell don't care about all these alternative lenders