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Companies I have an interest in:

  • (as a past or present employee / consultant / investor / advisor or related)
  • Vandelay Industries
  • MyMojo
  • USO Networks
  • Media6Degrees
  • Adchemy
  • Consorte Media
  • doublePositive Marketing
  • Turn, Inc.


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December 30, 2005



Brian - Assuming that everyone spends a certain % on housing (mortgage) then yes targeting by HHI would help increase the value of the leads because the loan amounts should be larger. Although the better the credit score (this is probably not correlated with HHI) and the more savvy the borrower the slimmer the profit will be. That's why sometimes FHA loans can be much more profitable. I would assume a better way might be to target by zip code where possible and pay more for leads from zips that have higher property values.


Rob, so targeting (or excluding) by geo probably isn't the best way to would probably work better to target by HHI?


The key driver to the value is the relative value of a home which is correlated with the size of the mortgage. Loan officers make more money on bigger loans because they are paid in percentage points of the loan value along with the interest rate charged.


Obviously, state size is a driver to this distribution but what are the other criteria that spread out the distro as such. State laws and costs? States with a higher concentration of vacation real estate? Also, does this distro change with seasonality?


Another driver of lead value is conventional vs. FHA. The prepays give the loan officer a much higher payout. I'll try to get the relative difference.

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