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Business Operations Business Models

How Does LendingTree Make Money (Business and Revenue Model)

The LendingTree business model

How Does LendingTree Make Money?
Here’s what you should know:
  • What is LendingTree, and how does LendingTree work?
  • How does LendingTree make money?
  • Match Fees (from Network Partners)
  • Affiliate Commissions
  • LendingTree’s Subsidiaries, Acquisitions, and Exits
  • LendingTree’s profit and revenue
  • What is the LendingTree business and revenue model?
  • LendingTree’s funding and market cap

How does LendingTree make money if it’s free to use? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the LendingTree business model, their profit and revenue, and how LendingTree works.

What is LendingTree, and how does LendingTree work?

LendingTree is an online lending marketplace for comparing various types of products such as loans, insurance, credit cards, deposit accounts, and more.

Founded in 1996 by Doug Lebda, LendingTree began trading on the NASDAQ on August 21, 2008, under the ticker symbol “TREE”.

Since that time, LendingTree has now facilitated more than 3 million approved loans worth over $260 billion since its founding back in 1996.

How LendingTree works is: To use LendingTree, users can go to their website or download the mobile app on Apple Store or Google Play.

Once on their homepage, they can begin by first choosing what kind of loan they’re looking for and answer a few questions about that loan to give them the best list of lenders that fit what they’re looking for. From there, users can then compare and choose from the lenders and quotes they received. If they are interested in any of them, they can move forward by either talking with one of LendingTree’s loan officers or by simply just applying online.

Some of LendingTree’s competitors include Credit Karma, Bankrate, NerdWallet, Policygenius, and other lender comparison websites.

LendingTree App in Apple App Store | LendingTree Business Model | How Does LendingTree Make Money? | How Does LendingTree Work?
Source: Apple App Store | LendingTree

How does LendingTree make money?

According to LendingTree’s press page, LendingTree has facilitated more than 3 million approved loans worth over $260 billion since its founding back in 1996.

So how does LendingTree make money off of all loans?

Below is a breakdown of how much money LendingTree makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how LendingTree makes money (in 2022):

LendingTree has a revenue model that makes money in two (2) ways – match fees from network partners and affiliate commissions.

#1. Match Fees (from Network Partners)

LendingTree makes the majority of its money from receiving what they call “match fees” from its more than 500 network partners, or lenders.

How does LendingTree make money from match fees? LendingTree makes money every time a network partner (lender) receives a consumer request, or lead, from one of its LendingTree users.

As noted above, LendingTree has facilitated more than 3 million approved loans worth over $260 billion since its founding back in 1996. Of which, LendingTree earns a match fee on each on all of it. Although it’s unclear how much money LendingTree receives per consumer request.

LendingTree Fees | LendingTree Business Model | How Does LendingTree Make Money? | How Does LendingTree Work?
Source: LendingTree

Note: LendingTree partners with more than 500 lenders nationwide.

#2. Affiliate Commissions

Another form of compensation LendingTree makes money from its partners is through commissions.

This happens when, according to LendingTree, a customer “makes a purchase or signs up for a service” on things such as credit card products or deposit accounts through LendingTree’s platform with a LendingTree partner.

Note: The difference between match fees and affiliate commissions is that with match fees, LendingTree makes money every time they generate a lead for their partners. While with commissions, they make money when they generate a sale for their partners.

LendingTree’s Subsidiaries, Acquisitions, and Exits

To date, LendingTree, Inc. has made a total of 12 acquisitions, 2 investments, and 1 lead investment.

Mergers and acquisitions business model
Source: Crunchbase | LendingTree

LendingTree’s profit and revenue

In 2021, LendingTree reported $1.1 billion in revenue.

Note: Because LendingTree, Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of LendingTree’s publicly released financial reports, including annual reports, through LendingTree’s investor section on their website.

What is the LendingTree business and revenue model?

LendingTree makes money through a few revenue models that they combine within their company, they are:

  • Affiliate business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

LendingTree’s funding and market cap

LendingTree has a market cap of $824.2 million as of May 2022.