Any regular reader will know that last week I brought my first group listing to the marketplace. (As an aside, a group leader is no longer paid for successful listings and the haven’t been since September 13, 2007: Email To Group Leaders After Recent Changes. I think this was a good change and said so at the time and continue to say so now.)
While I certainly helped to the best of my ability and resources, the borrower did an excellent job of leveraging his social capital…
What social capital?
- He made it know that he had a job that supplemented his income. For him that amounted to as much as an extra $900 a month. By putting his blog on the listing he was not only putting his anonymous credit information and verifiable income on display, but leveraging his online assets. By adding the reputation of his blog to the listing, I think he added to the quality of listing immeasurably. Any blogger with any significant track record that puts their blog reputation at risk is serious about the reasons behind the loan and paying off the loan. (His blog is Deep Market.)
- He leveraged his interactions with me — a long time lender and p2p blogger. By joining my group and becoming Prosper friends and accepting my endorsement on his listing he was able leverage his interactions with me (email and blog comments for around a year) into additional social capital: my endorsement.
- Additionally, he used his blog to advertise his listing: Prosper Loan Listing Review. By offering links and reviews in exchange for bids and reviews he was offering a non monetary but valuable asset in exchange for buzz and bids.
What was the net result? A $25,000 loan at an interest rate he is very happy with 18.5%… His loan was bid down almost 7% from his starting point of 25.45%.
Deep Market, Congratulations and good luck… please keep us up to date with your progress.
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5 comments ↓
I’m glad to see he got funded.
I see someone dropped $10K on his loan. That certainly helped. Up until that point it did not look like he would get funded. The 10K bid was eventually knocked off the loan as others bid it down.
[...] would not have been possible without the excellent leadership of RateLadder as my group leader. If you are looking for a group to join and need someone to help you create a [...]
25k at 18.5%?? he could’ve just got a credit card for that kind of rate. CC companies have no problem increasing the limit on you. I always thought Prosper offered better rates.
@Erik
I think DeepMarket is happy with the rate… It is lower than his current credit card rates, so extending his limits would not help him… He is a B, but his bankcard utilization was very high… A B credit score is not a prime score.
He was also a little unlucky that Prosper updated the portfolio plan slices the night his listing went live… Moving him from a portfolio plan slice to outside of the parameters… He would have gotten a rate at lot lower if that hadn’t happened.
[...] for advice on their listings or potential listings… One of them even joined my group and successfully received a $25K loan at an interest rate he was happy [...]
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