Lending Club is offering a 5% ROI bonus in the form of a “Thank you!” to investors who lend more than $5,000 before February 3rd 2008. If you lend $5,000 before the deadline, you will receive a bonus of $250! If you use my Lending Club Affiliate Link and open the account with $1,000 initially, you will receive an additional bonus of $50! That will add up to an extra 1% to your P2P lending ROI. The best news is that the more you loan, the more bonus you will receive, so if you loan a total of $10,000 before the deadline, you will receive a $500 bonus payout. Even better you can take the bonus out in cash or reinvest it at Lending Club.
How would the Bonus Impact your Lending ROI?
If you lend $5,000 in $25 increments, the bonus will give you 10 “free” defaults. If you use my affiliate link to open your account, you will receive another two free defaults. This means you can select 12 bad loans at no negative impact to your P2P loan return on investment. Considering that the average reported loan portfolio ROI is about 12% (I forecast it will actually be a bit lower), this could possibly bump your returns at Lending Club up to 18% (12% + 5% + $50 affiliate bonus). That would overcome the income tax implications of P2P loans.
Even Higher Returns are Possible
To even earn even crazier returns than 18%, you can also refer people to lend which will earn you up to $50 per lender. If you refer 10 people at a $50 referral bonus each, you could possibly earn a 28% return on your investment. The S&P 500 has only toped a 28% return only one year in the last 20 years!
New to Lending Club?
I created a video of the Lending Club Portfolio creation process. It is quite easy to select loans for a risk risk level that is comfortable to you. By the way, Lending Club was my first choice over Prosper.com even before this bonus return on investment program.
It can take up to eight days to fund your Lending Club account and might take a week or more to find $5,000 worth of loans that you want to invest in. So if you want to earn this outstanding 5% bonus plus have the chance to earn more through recommending this program to friends, you should sign up now!
Another Suggested Promotion
According to my experience, Lending Club might have been better off offering a discount to borrowers because I found borrowers lacking. Maybe Lending Club should offer payment forgiveness on the last three payments to borrowers. Lending Club would not need to pay anything for deadbeat borrowers and the actual cash outlay would be significantly delayed which would mean a lower NPV on the promotion. Image the tag line to potential borrowers – Three Free Payments!
lending club, bonus, thank you, investment, roi, p2p lending