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[JohnCalmus]

 

poof

[kenL]

For a year on average they did $500,000 in originations per week. Whenever they started to dip below that they ran some kind of promotion, like the 1% on all bids promotion (they didn't try that again) or the 2% one day only bonus, which they extended for a couple days IIRC. Not a whole lot of bonus giving during that year, but nevertheless some and it was very targeted, coming at times when originations were waning.

At least that's how it appeared to me.

That's called trying to keep originations UP to at least $2m/mo and barely succeeding, not trying to keep them flat down at $2m/mo.

Ken means that, if they wanted, Prosper could have been giving out promotion bonuses all the time like Lending Club, hence artifically increasing their origination numbers, but instead they strategically chose not to, rather only giving out promotions when the average origination numbers began to dip below 2 million a month. Rather than increased borrower volume, they instead want to first demonstrate that their model can be financially successful, especially after the abysmal performance of the first several years.

In fact, his argument does have some merit, especially considering that Prosper loans originated in 2009 and 2010 have a MUCH higher ROI than Lending Club loans originated in the same time frame. It of course remains to be seen if they can retain such a high ROI with an increased borrower volume.

Yes, that is a very accurate summation of my sentiments, thank you John.

[havastat]

It also remains to be seen if they'll have the opportunity to try.

[kenL]

It also remains to be seen if they'll have the opportunity to try.

Yes, judgement day is coming.... again.

[christoofar215]

Prosper just sent out another e-mail ad calling for people to take out loans.

At least this year they are not trying to lie up front telling me what APR I'm not going to get, then getting to the loan screen and finding out the recommended APR I should start at is over double what they were shilling me for.


My Experian score is 770-780 now I think, $0 revolving debt, 1 recent INQ (mortgage) and now Prosper rates me as a "B" and the traditional 3-year note price was 12% APR.   I have credit cards that are 300 basis points lower than this.



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* APRs by Prosper Rating range from 5.93% (AA) to 35.64% (E). Rate offered is based on Prosper Rating and other factors and your actual rate may differ. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund your loan. Refer to Borrower Registration Agreement for all terms and conditions. All loans made by WebBank, a Utah-chartered Industrial Bank.

[JGuide]

Prosper's Latest Desperation Move

Why the negative tone? Some folks might call it marketing.