The MCA business is back. As America continues to open up, merchants go back to work, and funders open their books things look like they are heading back to Pre Covid times. I am seeing broker shops not only going back to work but expanding their operations and hiring at record numbers. Things are good, but when things get good, the competition increases. You will see more and more people coming into the industry and more and more people competing for the same deal.
The question I have been receiving from clients this week is how much should it cost to obtain 1 client or what is the industry CPA? This is the cost per acquisition. The standard for mca has been about 1,000 per new client in the past. This number is higher and likely to increase. That does not mean you can’t spend 500 dollars on a list and see a return. This week I had 2 clients spend 300 and 500 dollars on a test batch of leads. Both were able to make over 10 times their money on the purchase. This is certainly not the norm. You should be allocating a percentage of your budget weekly to purchase new data. You should be diversifying your marketing budget around inbound leads, 30-60 day aged data for calling, email, and text campaigns. The key is being consistent with your purchases and diversifying your campaigns. What works today sometimes does not work tomorrow so its a constant game of testing and adjusting to what is working for you. Use this strategy and you will likely see an increase in your funding and profits.