What’s ALICE Got to Do With Payday Loan Customer Demographics?

Alice in Wonderland 3-Blackpool Illuminationsphoto © 2010 Chris Cox | more info (via: Wylio)
I talk to entrepreneurs researching the payday loan industry everyday. Typically they’ve heard about all the money we’re making and they “want in.”

One common misconception these newbies have, among many, is that the typical payday loan customer is “down and out;” that they’re the “dregs of society.” These entrepreneurs usually begin the conversation by describing a “great location” they’ve already “locked-up” in what can best be described as a “skid row area.”

Man, they don’t get it!

Payday loan customers have jobs. Payday loan customers have bank accounts. Payday loan customers have the ability to pay back their loan!

Our payday loan customer is the Walmart customer; the blue-collar, white-collar employee making $18,000 to $48,000 a year!

And MOST IMPORTANTLY what we all need to understand is that this segment is GROWING!

There is a world-wide shift occurring in the advanced economies! The total number of employees in the service sector and other lower paying jobs is expanding. Higher skilled, higher paying jobs are going off-shore to developing countries where wages are lower.

This shift is so pronounced there is even a name for this market segment; it’s ALICE (Asset Limited Income Constrained Employed).

These are our people! Embrace them!!

As Jeff Weiss with Dollar Financial pointed out in a conference call, “The average wage rate for ALICE is shrinking against the rising tide of higher costs for food, gasoline, health care and other basic necessities.”

“In such an economy, where the margin between personal income and the cost of living is continually narrowing, our products and services can provide a real benefit for consumers and small business owners who may be confronted from time-to-time by an unexpected auto repair bill, a medical bill, or the need to replace broken or obsolete equiptment in order to keep their small businesses operating. The number of ALICE people are increasing around the globe…”

So… bottom line, more and more consumers around the world need our products and services! Banks, credit card companies and economic conditions are literally pushing ALICE right into our arms!

The future REALLY is ours!



Spy on a Payday Loan Company-Their Plan and Financials

Loose Lips Stock Tipsphoto © 2008 Mike Licht | more info (via: Wylio)
You want the inside scoop on the payday loan industry? Are you drooling over the profits you hear are occurring in the micro-lending/AFS (alternative financial services, payday loans, car title loans, peer-to-peer lending… ) industries?

There are a lot of methods for peering into payday loan company operations without your having to jump through hoops or sign NDA’s. How?

When CNBC and the Wall Street Journal covered the payday loan industry a while back, they mentioned several publicly traded companies in our space; in fact, a few analysts recommended specific stocks . One of these mentioned was EZCORP.

So… on January 20th, just go to this link and listen to their Webcast to spy on a payday loan company!

EZCORP, Inc. Webcast
When: January 20, 2011 @ 3:30 pm CST
How: Live over the Internet — Simply log on to the web at the address above.

NOTE: They usually leave these reports up several days after the event.

Comment Here!


Positive Payday Loan News-Wall Street Journal and CNBC

The payday loan industry received some very positive attention from wall street today! Get a copy of today’s Wall Street Journal and view CNBC’s Maria Baritromo program!

The Wall Street Journal has a piece entitled, “Dodd-Frank and the Return of the Loan Shark.” Yeah, hate the title but love the overall tone of the piece.

We’ll cover this in depth over the next couple of days. We simply want to alert you that wall street has identified the payday loan industry as a great area to make some money.

A few of more highlights to come:

AEA and DLLR are up 50%.

Same store sales and revenues are improving.

Consumers are moving from former credit systems into payday loans.

International payday loan lenders are growing.

“Buying a basket of payday lending stocks not a bad call!”

There are of course, still regulation questions on the state and national level to be considered.

Banks are driving consumers to payday loans and other AFS products.

Resurging growth of payday loan lenders is being seen in the U.S.

As I said, we’ll do more on this in the coming days.

And remember, “The future is ours.”