The gig economy and avocados – what’s the truth with millennials and alternative finance?

When you’re an affiliate marketer blogging about payday loans, who do you picture as your ideal reader? Is it a middle-aged struggling manual laborer with three kids and an auto repair bill? They’d be a good bet for needing short-term finance, true.

But what if I was to tell you there is a huge market out there, one that was often ignored by payday loan companies and their marketing departments? You guessed it from the title, I’m talking millennials.

What’s a millennial anyway?

Millennials used to be defined as kids born between the years 1982 and 2000, growing up in the new millennium. Oh, and by the way, there are more millennials than baby boomers, according to the US Census Bureau. But nowadays anyone under the age of about 40 is considered a millennial, more or less. And this is a huge market for payday lenders and their affiliate marketers.

The goalposts have moved

Millennials get a lot of crap for not having the same work ethic as their parents, or for spending all their money on avocados and lattes instead of saving up for a house. But let’s face it, with the modern gig economy and the cost of education, it is not easy for younger people to get themselves out of money trouble.

Whereas an older generation might dip into equity of their homes or other assets, millennials have difficulty getting on to the property ladder or making longer-term financial investments, and can’t then rely on these to bail themselves out.

In fact, according to a USA Today report, 43% of millennials intended to use their tax refund to pay off bills accrued during the 2017/18 holiday period. That hardly sounds irresponsible.


Home sweet home

Another thing causing millennials to need alternative finance is the difference between wages and housing costs. The average hourly rate an American would need to earn in order to comfortably* afford a 2-bedroom home in 2017 was $21.21 and the average wage was $16.38. The federal minimum wage is $7.25. (See the National Low Income Housing Coalition’s report for more figures.)

For millennials, who might be working minimum wage, part-time or on a gig basis, the actual amount of money they are bringing in can be significantly lower than what they actually need. And sure, some can live in their parents’ basement, but what about those traveling across the country for college or work? What about those who are in a relationship? Millennials can even have their own children, don’t forget!

The gig economy and credit card debt, topped off with student debt can mean millennials’ credit rating causes the mainstream banks close their doors in their face. If you’re an affiliate marketing blogger, you probably know this feeling all too well.

The digital age

Another aspect of the millennial payday market is that this group is used to a faster moving, digital world. They want music? They stream it instantly. They want to buy something? They go to a website and order it to be delivered the same day.

It’s not even about patience. It’s just that this is how they feel the world should work, and they’re right.

In many cases, they will look for quick money via their cell phones, so your affiliate marketing blog needs to be mobile friendly. Can any leads you generate go from a form on your website to approved partner lenders straight away? Is the platform your using for trading lead gen cloud-native, or clunky and slow?

If not, we have an answer. Try revJOLT and boost your payday lead gen sales today!

Publishers sign up here Advertisers sign up here


*The NLIHC define affordability in housing to be where it takes up 30% or less of all earnings.