Following the lead of search engine giants like Google.com and Yahoo.com, Bankrate.com has begun charging for mortgage loan leads on a pay-per-click basis.
The New York-based Web site, which provides interest rate comparisons for consumers looking for mortgages, said it implemented the new pricing structure Oct. 1, according to an announcement today.
The new cost per click is based on tiered pricing ranging from $1.75 to $5.25, Bankrate said. The pricing structure reportedly factors in "prevailing Internet market conditions, real estate prices, home values, third party data, Bankrate's historical data and several other factors."
The pay-per-click model has helped propel the likes of Google and Yahoo into the revenue stratosphere, and has not escaped the eyes of companies such as Microsoft and America Online -- which have created competing ad services.
Bankrate noted it previously charged a flat monthly fee to be listed on its randomly populated interest rate tables.
"The new pricing structure is more equitable for our advertisers," said Bankrate CEO Thomas R. Evans in the statement.