Payday Loan Lead Buyer Guide: How Payday Loan Lead Generation Companies Work and Why Should You Buy Payday Loan Leads

Stop! Do not buy another payday loan lead before reading ArrowShade’s Payday Loan Lead Buyer Guide.

In this payday loan lead buyer guide you will learn everything you need to know about payday loan lead generation, lead aggregators and affiliate networks. This guide is for every lead buyer from the payday lender buying leads for the very first time to the seasoned lead buyer looking to grow business and take revenue to the next level.

This payday loan lead buyer guide will reveal the state of the payday loan industry, how to choose a payday loan lead generation company and what to look for in a payday lead before you buy.

You might think this payday loan lead buyer guide is long, but if you stick with us, we can help you reach your ROI and payday lead goals.

Without further ado, let’s start the payday loan lead buyer guide with the current state of the payday loan industry.

State of the Payday Loan Industry

The payday loan industry is still going strong and growing despite new regulations. Approximately twelve million Americans take out short-term loans each year. In the United States, almost 2.5 million households take out at least one payday loan per year. That means one in 50 Americans uses a short-term loan annually.

The average payday loan costs the consumer an average of $15 for every $100 that is borrowed. The payday loan industry generates $9 billion in loan fees in the United States each year. There are only 14 states in America that do not allow payday loan lenders to operate because of capped interest rates and additional restrictions.

People between the ages of 25 and 49 are more likely to use short-term loans. People over the age of 70 are the least likely to use the product. African-Americans in the United States are twice as likely to use a payday loan when compared to other ethnicities.

People who rent are twice as likely to take out a short-term loan than people who own their homes. Those living on disability payments or receiving unemployment benefits are also more likely to take out a payday loan.

More than 80 percent of short-term loans are rolled over or followed by an additional loan within 14 days. In America, the payday loan industry is valued at $50 billion, despite tighter regulations. Some markets have predicted a CAGR of up to 30 percent in the next five years.

The average payday loan lead generation company can sell payday loan leads up to $185 per lead. The average payday loan lender can generate up to $30,000 in profits each month.

Payday Loan Regulations and Industry Trends

While the payday loan industry continues to be heavily scrutinized, the product remains popular among Americans. For many, it is the only option for funding.

Payday loan industry regulations have set limits on interest rates and increased minimum term length in some states. Colorado for example, required payday loan repayment plans extend from 14 days to six months. As a result, many payday loan stores closed in the state.

Despite new regulations, as of 2014, there were more payday loan lenders in American than there were McDonalds. While there are sure to be more regulations in the future, there is no doubt in the popularity and need for the short-term loan products. Industry trends show that there doesn’t seem to be a slowdown in the demand for short-term funding.

How to Choose a Payday Loan Lead Generation Company

If you take nothing else away from this payday loan lead buyer guide, it’s important to learn what to look for in a lead generation company. While the payday industry has changed significantly in recent years, it still remains a profitable vertical for payday loan lead generation companies and affiliate networks.

There has been a shift in the way people request payday loan funding, with more consumers looking to conduct transactions online. As a result, payday loan lead companies have been able to take over a larger portion of the payday loan market. As more consumers search for payday loans online, lead generators and affiliates can generate more payday loan leads than before.

There is a lot to consider when shopping for a payday loan lead generation company. Some payday loan lenders do not work exclusively with one network and choose to diversify where they buy from. Working exclusively with one payday lead generation company can in some cases, help you secure better deals like a lower price per lead or exclusive access to leads.

When searching for a payday lead generation company consider the following:


Does the payday lead company have a good reputation? Do any of your colleagues use them and can vouch for them? Are there online reviews of the payday loan affiliate network you can gain insights from? Do you know any affiliates working for the network? Make sure to read multiple reviews to get a good idea of how the company operates. Not every experience will be your experience, so look for reviews that touch on the aspects of working with a company that matter to you most.


Price can play a major role in who you decide to partner with for payday leads. If you are on a budget or buying leads for the first time, you may consider purchasing cheap leads to make your ROI goals. It’s important to remember that in the payday loan lead industry, lead prices are often an indication of quality. The ping tree can range from $2 to upwards of $120. As the payday loan lead buyer, you can set your price points. As leads come in, they are shown to the lenders who are willing to pay the highest price per lead. Lead buyers are shown certain information that can help them determine if they want to purchase a lead or not. The lower your bid, the lower you are on the ping tree, and that means there is a good chance the quality is lower as well. While you may pay more upfront for a lead, you may be able to earn more from that lead as well. You will probably need to test various bids to find the right price point for your payday lending business.


Make sure you understand the source of the payday leads you are purchasing. For payday loan leads it’s especially important that you do not purchase incentivized leads. Some affiliates generate leads by offering incentives like gaming or reward points. Consumers are incentivized to complete your form in order to get something in return. That makes the payday loan leads low quality, as the intent to get funding is lower than non-incentivized leads. Good sources of traffic or leads include, but aren’t limited to search marketing, search engine optimization, email marketing, social media campaigns and display campaigns. If working with a payday loan lead generation company or affiliate network, you can limit the sources of traffic you will accept.

Lead Caps and Minimums

Some payday loan lead companies set lead caps and minimums. If the lead generation company you partner with has a minimum lead cap, the payday lender is required to purchase a certain amount of leads each month. If you do not reach this cap, you will be kicked out of the network. This is not ideal for lenders who are on a budget, only need to supplement their own efforts with leads, or only need leads from time-to-time.

Lead caps can also be a pain for payday lenders. Lead caps can help lead aggregators who have a lead shortage. They can only deliver a certain amount of leads per month. If you need more leads than is allowed, you may need to partner with multiple networks.

These are just some ways to qualify your payday loan lead partners. Your organization may have additional requirements like security protocols and/or contract requirements. In those cases, your company CTO and legal department will get involved to help ensure you are partnering with the right organization and that you are protected.

There are certain fair lending practices that most lenders abide by as well. This includes the types of information provided on a payday website, and how payday products can be marketed. It’s important to find a payday loan lead seller that abides by payday industry best practices and standards.

What to Look for in a Payday Loan Lead

Purchasing high-quality payday loan leads is a great way to grow your lending business and reach your ROI goals.

Marketing payday loans is more challenging today than in previous years, due to network bans. Google for example, has banned payday loan advertising on its Google Ads platform. While you may still see some short-term loan ads in search results, their terms have been adjusted to meet Google’s requirements.

Many social media sites including Facebook, have also banned payday loan advertising. Now more than ever, payday loan lenders are looking to lead generation companies and affiliate networks for quality payday loan leads. But what should you look for in a payday loan lead?

Payday loan lead generation forms are quite lengthy. It’s important that the payday loan lead generation companies and affiliate networks you work with, obtain all the necessary information required for you to qualify and fund a lead.

Payday loan lead form requirements may vary from lender to lender, but generally they include:

  • Name
  • Phone
  • Date of birth
  • Social security number
  • Address
  • Zip Code
  • State
  • City
  • Time at Residence
  • Email address
  • Employment information
  • Banking information

If you need more or less information, it’s important to convey this to your payday loan lead aggregator, so that you obtain all the information necessary to convert a lead.

When purchasing payday loan leads, the lender or buyer won’t be shown all lead information until the purchase is made. You will be shown a subset of information, just enough to make a purchasing decision. Make sure to identify what this information is before making a purchasing agreement.

Some lead generation companies have fraud detection technology. This technology scans leads for signs of fraud. For example, if an affiliate submits multiple leads that were generated from the same IP address, that may be a sign of fraud.

Other payday loan lead companies or affiliate networks provide quality guarantees. They may refund your money if you have proof you have purchased fraudulent leads.

Fraudulent leads come from lead aggregators or affiliates looking to make quick money. They can have software that scrambles IP addresses, and have the ability to complete multiple web application forms with fake information. Some fraudulent affiliates even use information from deceased individuals to complete web forms and get paid commission.

Most affiliate networks and lead aggregators are aware of these scams, and screen affiliates and payday lead sellers before accepting them to their network and purchasing their leads.

If you decide to work with an affiliate or lead seller directly, it’s important to establish fraud rules. The third party must acknowledge that they will not be paid for any leads proven to be fraudulent. This protects you against having to pay for fake leads you have no ability to profit from.

Why Buy Payday Loan Leads from ArrowShade

At ArrowShade, we abide by all the best practices listed above in the payday loan lead buyer guide. We screen our lead sellers to prevent fraud and protect the quality of the leads we distribute through our ping tree. We only buy and sell leads from affiliates who run legitimate marketing campaigns and abide by best practices. We do not sell incentivized leads.

We do things differently at ArrowShade, like providing clients with a payday loan lead buyer guide. We are the first short-term loan affiliate network wholly owned by a tribal sovereign. We believe in taking a unique approach to e-commerce than our competitors. We can help payday lenders expand their marketing presence into sovereign channels and yield grater reach and revenue possibilities. Transcend industry boundaries and strengthen your companies market position for long-term lending success.

Like the payday loan lead buyer guide? Contact us today to learn more about our payday loan lead generation practices, how and where we get our payday loan leads, and how you can become an ArrowShade lead buyer.