Wednesday, November 21, 2007

Lending Club improves referral program

Update (Oct 2008): Lending Club changed their referral program again.

Back in July we wrote about Lending Club's $5 referral bonus. Today Lending Club announced a new referral program that provides lenders with a bonus of up to $50 for referring friends to Lending Club. Lending Club's Rob Garcia answered a few questions about the program on the P2P No Bank forums. Here's an excerpt:

What are the terms of the program?

The referral program was initially introduced back in July as a $5 prize for any friend who joined. We quietly revamped it on Oct 25 to increase the prize to $25 for any friend who became a borrower OR lender. This was a test to see how users will receive it, and we noticed users liked this idea better. Today, we officially launched the program and the rules are:

When you refer friends to Lending Club and they become borrowers or lenders, we will deposit a bonus into both your and your friend's accounts:

  • $25 when your friend successfully submits a loan application

  • $25 when your friend opens a lender account with $1-$999

  • $50 when your friend opens a lender account with $1,000 or more

Can I point my referrals to a different page?

Yes. You can use 2 different links.

This one drops referrals on our home page, and if the user creates an account within the same session, you get the bonus. Use this for friends that still may need to read more on the concept before signing up:

This one drops referrals on the sign-up form. Use this for friends you think are ready to sign.

Does the referred user have to sign up immediately or is the referral stored?

The information is stored in the session, so the referred user has to sign up while in the session. Information is not saved in our back end or a cookie. The session will "expire" if the user closes the browser. This means that if the user closes the window, and comes back next day to sign-up, and types up "", the system will not recognize the referral.

In addition to changes in the referral program Lending Club announced several other improvements and changes which you can read about on the blog. They include:

Disclosure: I currently blog for Lending Club. Read my Lending Club posts here.

Update (12/13): Lending Club has produced the following image for websites to use:


RateLadder said...

I hope they take it a step further and make the cookie last.

Tom said...

That's a good point. Prosper's 30 day cookie has worked pretty well.

There is still a VERY low conversion rate from sign-ups to lenders/borrowers. Many people register but they do not become lenders or borrowers.

Matt said...

That's a good point. I think most people do not sign up the first time they click over to Prosper or Lending Club. It takes some time to make financial decisions like that.