A popular blogger whose stated goal is to retire before his dad writes a lot of posts about LendingClub (LC) filled with referral links to open accounts with the same, even though he no longer invest in any more new LC loans due to poor returns. I too have an LC account and likewise no longer investing in any more new LC loans due to poor returns. I believe LC loans are a bad deal for lenders (so called "investors"), and the business model is broken, making its stock an even worse investment, as the stock is currently down 78% from its IPO price of $15. I did subscribe to the LC IPO and got 250 shares at $15 each. Fortunately, I sold them shortly afterwards at around $27. I was in it for the anticipated IPO pop, which was pretty nice.
LC is desperate for new accounts to grow its platform, and offers generous referral bonuses for affiliate partners/ advertisers. This is apparently the only lucrative thing that has to do with LC. I am always suspicious of those who try desperately to get our business. The more aggressive they want your business, the less likely it would be a good deal for you. As Grocho Max once said,
The title of this post ("Getting Referral Bonuses for Advertising for LendingClub is Lucrative. "Investing" in LC Loans is Bad. "Investing" in LC Stock is Worse.") is what I wrote as a comment to that blogger's recent long winded post about LC. I don't think I was being harsh or disrespectful. I was only stating the plain truth of the matter.
That comment promptly got me banned from that blogger's site, faster than you could say LendingClub! Not only did my comment got deleted immediately, all my previous comments on his blog also got deleted at the same time! BANNED! Just like that, I become a persona non grata to the blogger. I guess my comment really struck a nerve there.
Anyway, I sure hope he can sleep soundly at night continuing to profit from referral bonuses (for he does have a very popular blog) sending unsuspecting readers of his blog to LendingClub who will later regret having ever opened an account with LC. No shame at all. Whatever it takes to retire before his dad, I suppose. O tempora o mores!
LC is desperate for new accounts to grow its platform, and offers generous referral bonuses for affiliate partners/ advertisers. This is apparently the only lucrative thing that has to do with LC. I am always suspicious of those who try desperately to get our business. The more aggressive they want your business, the less likely it would be a good deal for you. As Grocho Max once said,
I don’t care to belong to any club that will have me as a member.
The title of this post ("Getting Referral Bonuses for Advertising for LendingClub is Lucrative. "Investing" in LC Loans is Bad. "Investing" in LC Stock is Worse.") is what I wrote as a comment to that blogger's recent long winded post about LC. I don't think I was being harsh or disrespectful. I was only stating the plain truth of the matter.
That comment promptly got me banned from that blogger's site, faster than you could say LendingClub! Not only did my comment got deleted immediately, all my previous comments on his blog also got deleted at the same time! BANNED! Just like that, I become a persona non grata to the blogger. I guess my comment really struck a nerve there.
Anyway, I sure hope he can sleep soundly at night continuing to profit from referral bonuses (for he does have a very popular blog) sending unsuspecting readers of his blog to LendingClub who will later regret having ever opened an account with LC. No shame at all. Whatever it takes to retire before his dad, I suppose. O tempora o mores!
Love this post. Can't agree more on LC. Hopefully everyone can do their own research before their drink others cool-aid.
ReplyDeleteThanks for commenting! That pretty much sums it up. Well said!
DeleteInteresting take... I also read his post and commented, but certainly not with that take.
ReplyDeleteMy experiences have been far different from many others with LC, as I've earned strong returns continuously for the last nine years I've been investing there. And I shared as much in my comments.
That being said, you're right with the putting your money where your mouth is. It does come across a bit disingenuous to be earning from affiliate links while actively withdrawing from the service.
Hi W2R,
DeleteThanks for stopping by! It is good to seeing different takes on things! e.g. if I'm a Republican, I should watch CNN; if a Democrat, Fox News. We'd all learn more by seeing other perspectives. But most people can't tolerate views different from their own.
You are probably 3 sd above the mean LC loan returns, which is typically mid single digits. I am the polar opposite, i.e. 3 sd BELOW the mean, and earn just slight more than 1%, which is more like less than 1% after tax. Interest income gets taxed heavily. My ROI got hurt by holding too many F and G rated loans that defaulted. Putting the money into a low-fee broad stock market index fund would have been far better. Fortunately I did not put too much money into LC loans, and now have withdrawn to just under 2k in my LC account, and hopefully to 0 within a year or two.
Disingenuity is precisely why that blogger had to censure me so quickly, and probably countless others who do not exactly portray him in a favorable light. Funny that at the end of his post is found the phrase "Comments Welcomed". I guess that means only comments *he likes* are welcomed. Disingenuity at its best.
Take care!
JTF
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