Best Way - Payday Advance Marketing Strategies

Payday Advances are business that offers loans to individuals with the collateral being their future paychecks. They also offer a place for individuals to cash checks immediately when they are unable to do so at a local bank. The businesses thrive by charging high percentages on a person's check in return for the convenience of having money when a person needs it. Marketing for this type of business needs to target low-income individuals.

Direct street-level marketing

1. Those who use Payday advance loan businesses are low-income individuals who are struggling to make ends meet and living off paycheck to paycheck. Also, banks will not cash their checks immediately because their accounts have a tendency to be in the negative dollar amounts. The most cost effective and best way to reach these individuals would be direct marketing via flyers, cards or other types of document that individuals can take with them. This means the Payday advance business owner must hit the street or hire a team to target employees who work in low-income fields such as hospitality, construction, manual labor and retail. This demographic is easy to get to as you can walk right up to them and hand them a flier. Also, Payday advance loans are valuable for illegal immigrants to cash their checks in, so going to organizations that cater towards day laborers is also a good place to directly market. Also handing out coupons such as 10 percent off the fee is a good way to get repeat business.

Media strategy

2. While Direct Marketing is the mostly highly recommended way to market the Payday Advance business, a smart media strategy can also be beneficial to success. The low-income worker cannot afford to read a daily newspaper, but they do pick up the free weekly newspapers that are found in most large metropolitan communities and smaller suburban areas. The advertising for a classified or 1/8 or ¼ of a page listing for these newspapers is very inexpensive. Putting some sort of advertisement instructing potential customers to the benefits of receiving your paycheck early will drive business sky high.

Partnering with organizations

3. Partnerships with organizations such as community centers, soup kitchens, food shelters, and others that cater towards low-income individuals is a great place to get potential clients. Also, these organizations are looking for any way to help their constituents; they might be willing to refer people to your business in return for a small donation.