Student Loan Website Sells for 60 Million Dollars!

[FutureDoc]

Lending Tree just agreed to buy Studentloanhero.com.  Quite a bit of money for a site, makes me wonder what kind of referral volume they were generating and what kind of web traffic they have.

 

https://www.prnewswire.com/news-releases/lendingtree-inc-announces-agreement-to-acquire-student-loan-hero-300680609.html

[Zaphod]

Thats awesome. They probably had a ton of traffic and excellent referral/affiliate programs generating a lot of money. probably still an excessive purchase.

[Complete_newbie]

Not excessive. It's a good buy for lendingtree that is one of bigger players in home mortgage lending. This is classic cornering the market to monopolize and continue to generate asymmetric profits. No different then WCI investing in websites with similar "mission".

Make no mistake - loan refinancing is a giant business. Just look at profits the referrals make.

My guess (I dont know numbers but I'm sure its along those lines): If you get 1% kickback for referral and med student does 100k refinance that's 1,000 in the pocket. Sweet. Apply scale. Enjoy the beach.

[The White Coat Investor]

Thanks for the update. Always good to keep tabs on what's going on with competitors.

[FutureDoc]

Glad to, I hadn't seen any of the current sites sell before, thought it was interesting who ended up purchasing them.  Interesting that their Alexa rank is 4,466 in the US, around 24,000 worldwide.  That's a lot of traffic.

[The White Coat Investor]

FutureDoc wrote:

Glad to, I hadn’t seen any of the current sites sell before, thought it was interesting who ended up purchasing them.  Interesting that their Alexa rank is 4,466 in the US, around 24,000 worldwide.  That’s a lot of traffic.

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That's similar to Mr. Money Mustache. No surprise to see the value. Lots of folks working there too.