Revenue warning: What will happen to the CPA networks when mortgage interest rates rise?

Small little observation… but if you happen to run or work at an affiliate network it could have serious revenue effects for your company.

It’s about mortgage refinancing leads.

Interestingly enough… the rise of affiliate marketing and CPA brokers happened at the same time that long-term interest rates went down to levels not seen since the 1960’s.

If you have a look at the affiliate networks you will find that their most profitable offers tend to be about refinancing your mortgage.

Do you believe mortgage interest rates are going up or down? They have to come up sooner or later. Allan Greenspan is trying his best to get them to go up.

Refinance leads will then dry up. No-one is refinancing into a higher rate.

There will always be a demand for mortgage leads. But generating those lucrative refinance leads will be a lot tougher when everybody already have a low rate.

Bottom line: Don’t be too dependent on mortgage refinance income.

And make sure you mix up your mortgage traffic with some purchase leads.

They might be harder to sell today, but mortgage companies are likely to have to pay more for them in the future.

• We Support New York Affiliates

  

• Subscribe to ReveNews

  • Get ReveNews Updates in Your Reader
  • Get ReveNews Updates in Your Email

• The Latest Comments

  • David on McAfee SiteAdvisor
  • Peter Figueredo on Affiliate Marketing Research Released
  • CT Moore on Affiliate Marketing Research Released
  • Eric Brantner on Is SEO Hampering Your Site’s Usability?
  • Jean-Francois Vigeant on Is SEO Hampering Your Site’s Usability?
  • Eric Brantner on Is SEO Hampering Your Site’s Usability?
  • Gerald Weber on Is SEO Hampering Your Site’s Usability?
  • Peter Figueredo on Affiliate Marketing Research Released
  • 5 Star Affiliate Blogs on Affiliate Marketing Research Released
  • Eric Brantner on 9 Ways to Keep Visitors Around Longer

• ReveNews Readers

• Archives

  Select Month November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004