In an email newsletter Zopa Italy encouraged its member to spread the word about Zopa to friends and relatives. Zopa says it is for 'a good reason': Zopa Italy pledges to lend $1 on Kiva for each new member that registers at Zopa Italy before January 15th. Everybody can monitor how much Zopa invested on this lender page at Kiva.
I am sure that Kiva will highly appreciate this promotion, a target audience that is already interested in p2p lending gets introduced to Kiva's concept. But I am not sure if that is a good marketing campaign for Zopa. Should the lenders decide Kiva is an interesting concept they might lend their money at Kiva instead of at Zopa. Maybe Zopa speculates lenders will invest in both. Or Zopa wants the added social angle to increase chances of press coverage.
What do you think? Discuss this at the Zopa forum.
(Source: Email newsletter from Zopa Italy, Dec. 27th)
MyC4 users can now easily give someone a MyC4 account as Christmas gift. With a 6 step process the user creates an account, transfers money and prints a christmas voucher. The recipient is all set to start investing in loans.
Is this a clever viral marketing idea? Post your take on this in the wiseclerk forum!
I noticed prominently displayed Microplace ads on Technorati.com today. Not sure if it is really keyword-targeted or rather context targeted. When I did searches on Technorati on Globefunder or Kiva I was shown Microplace ads.
Technorati is an interesting choice for the campaign (if it runs only there – I did not check). Technorati is mainly used by bloggers and journalists. The ads would therefore target not the individual investor but the multiplier who might write about Microplace. I noted that the ad display is NOT using geotargeting meaning it is not only shown to US residents but to viewer worldwide (only US residents can use Microplace at the moment).
(Sample screenshot after search for globefunder)
(Another sample ad, original is larger and flash animated)
After MyC4.com was featured on Danish national TV in a 15 minute feature many new lenders signed up. Within 3 days lender count rose from about 500 to currently 964. At MyC4 lenders (called investors) loan money to African entrepreneurs. The bidding frency of new lenders did lower closing interest rate dramatically. Loans now closed at 2 to 3 percent lender interest rate (previously usually 10 to 12 percent). MyC4 will now have to increase the number of listings, otherwise they might be temporably be sold out like happened to Kiva. Yesterday the first loan listings from Ivory Coast went online.
Currently all referral programs mentioned above have one thing in common. They are open only to existing members of the p2p lending services. Assuming they are successful and the p2p lending serves are seeking opportunities to enable even faster growth then the next step could be to start an affiliate program through networks like Zanox, CJ or Affilinet.
And today German Smava.de has launched an affiliate program through Affilinet. Though probably not a result of my blog post (or is it?), it is nice to see the development headed in the direction I anticipated.
The Smava affiliate program pays 15 Euro for each referred borrower that creates a listing and 10 Euro for each referred lender (who completes process of opening an account).
Since June Prosper.com runs a referral program that allows Prosper members to refer new lenders or borrowers.
How does it work?
Prosper members are encouraged to put up text links, buttons or banners on their websites that advertise for Prosper. If someone clicks on that link, a tracking parameter included in the link format allows Prosper to detect which Prosper member refered the surfer. Should the surfer sign up the member who referred him will earn:
in case of a new borrower: 0.5% of the loan amount (up to $125) when the first monthly payment clears
in case of a new lender: $25 as soon as the first loan bidded on originates
Example: If you click on one of the following buttons and sign up as a new Prosper members I am eligable to earn the referral bonus if you get active:
Up to August 31st there is a huge incentive since new lenders that sign up through the referral program get credited $25 as well to their account.
Does it work?
Although I do not heavily use the Prosper referral links on Wiseclerk.com and considering that most of the Wiseclerk audience are already Prosper users before they discover Wiseclerk, I did have several members sign up through my referral links in the past weeks. Every time somebody signs up through my link, I get an email with the new member's screenname. Most are still in the status 'Registered' meaning after signup they did not take any further steps yet to become a lender or borrower. One became or borrower, but so far failed to receive a loan.
More interesting ways to use referrer links
Wondering how the referral links can be turned from pure ads to a widget that offers additional information and is spread through viral marketing methods. Kevin at Rateladder.com has created a tool that creates code for borrowers to promote their listing on MySpace or other webpages. The tool creates an ad for the borrower listing, showing the title, the photo, the interest rate and the percentage funded. It calls for action through a 'Bid Now' button. Cleary of interest to borrowers. And Kevin profits, since he incorporated his referral links. Therefore should somebody wishing to bid sign up as a lender, he can profit.
The Prosper referral program compared to the referral programs of other p2p lending services
British Zopapays members 30 pounds for refering an active lender or borrower. This scheme exists since summer 2006 and occassionaly the bonus was increased to 50 pounds for a limited time. German Smava.de pays members 25 Euro for referring an active lender or borrower. Dutch Boober.nl awards points for sucessful referral of lenders. These can be exchanged for merchandise, e.g. for 3 referred lenders a member can earn an iPod. As far as I am aware of Lendingclub does not (yet) have an referral program. (Correct me if necessary!). It will be interesting to see if and what new entrants like Communitylend.com and Ireloans.com will offer for referring new users.
The next step for even more growth
Currently all referral programs mentioned above have one thing in common. They are open only to existing members of the p2p lending services. Assuming they are successful and the p2p lending serves are seeking opportunities to enable even faster growth then the next step could be to start an affiliate program through networks like Zanox, CJ or Affilinet.
This would allow (semi-)professional internet marketeers to promote the offers. This step would offer two advantages:
Huge exposure of the ads on many websites. Experienced marketeers promoting the offers (still on pay for performance base – no untargeted advertising spendings)
Simply by beeing listed many people will sign up for themselves instead of marketing the offer to others.
The only downside are the costs which are typically 30 percent of transaction value. In case of Prosper seeking lender referrals this would add up to $32.5 (25 for the marketeer plus $7.5 for the affiliate network).
