The industry for payday loans is huge. According to a 2012 study by the Pew Charitable Trusts, the industry earns $7.4 billion every year.
Despite the government cracking down on unethical lenders, you can still take your place as an ethical lender offering online payday loans in California and help to serve the millions of Americans that need this kind of service.
Here are some factors you should consider when marketing your service in order to grow your business quickly and profit.
The Location of the Business
The average female who uses payday loans is female and is between the ages of 25 and 44, according to research by the Pew Charitable Trusts. These women do not have a four-year college degree and earn less than $40,000 a year. This should be your target market, and so you should consider being as close to them as possible.
If you’re going to have a physical storefront for your small local business, then you should make it easy for this type of customer to access your store. You can, for example, locate your store near traditional banks or large malls and other retail centers.
You might also consider being near hubs for public transportation just in case your customers do not own private vehicles or are taking out a payday loan to fix their broken down car.
Your Marketing Message for Those in Need
Customers need payday loans in order to fix the short-term financial emergencies they are going through. Therefore, your marketing should emphasize that you can fix these emergencies with your loans, such as preventing their cars from being repossessed or their electricity and water from being cut off.
You should also consider the embarrassment some customers have to deal with when they need a payday loan. Your message should therefore also mention that you are committed to your customer’s privacy.
Another thing your customers will want is a simple and fast process when applying for a loan. This is why it is a good idea to make it possible for the whole process to happen online. You should also include in your marketing message information on how simple your application process is.
Offer Many Different Services
Your service should be a kind of one-stop shop, whether as a brick-and-mortar or an online-only operation. Offer money wiring services and payment of bills. You will not only make life easier for your customers, but you will also gain an extra stream of revenue.
You can even offer counseling services on credit and give them advice on how they can build strong and solid financial lives. You’re not just in this business to offer loans, but also to help your customers climb out of debt and become financially independent. That would truly set you apart from the unscrupulous lenders out there who want to milk their customers dry for every coin they’ve got.
Consider Direct Marketing
Direct marketing is very cost effective and can be successful if done right. You can use fliers, posters, and other kinds of printed material to advertise your business. Design them to be eye-catching and hand them out in the most regular haunts for your customers, such as libraries, Laundromats and apartment complexes.
You can even put together a team to walk around neighborhoods and retail areas to advertise your business. Encourage them to talk to potential customers by offering them a commission for every new customer they bring as an incentive.