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!


Comments ( 8 )
  • Carl L. says:

    Since time began, the human condition has placed entrepreneurs and consumers in the position of seeking capital from investors having an excess of capital and are willing to risk it by charging interest for its use.

  • Eric Agrelius says:

    Once again Jer, you’ve hit the nail on the head. The emerging consumers (18 – 24 year olds) and the number of X-prime consumers that are falling into the non-prime space for the first time in their lives are growing every day and are in need of Cash Advance / Payday Loan services. It’s good to know that we now have a name for this market segment; ALICE

  • Save My Money says:

    Thank u jer for this blog.I agree with your premise good to know about payday loan.

  • personal2Loan says:

    Thanks for sharing this wonderful information, it really very good post.

  • Steve Matthew says:

    it very informative blog for payday loan borrower

  • Rejinold says:

    Yes, I must agree with your premise, Jer. There is a real uptick in consumer requests for all our products; payday loans, car title loans, installment loans…

    Everyone at my company is extremely optimistic about the future of micro-lending!

    And check out the stocks of the publicly traded companies in our sector. Thanks for bringing this to my attention, Jer!

    You guys ROCK!!

  • admin says:

    great points, Jer! Consumer demand for payday loans is growing like pot houses in silicon valley. Banks and credit card cumpanies are not helpful. The days of free checking are over. The days of free checking accounts are gone,


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