Advantages of Different Commissions Schemes for Forex Affiliates
June 20, 2019
grow an affiliate business, one needs the
skills and abilities of a regular manager. It is all about finding the right
commission scheme and generating enough traffic to cover the ongoing expenses.
this category, we can list expenses generated by the affiliate program such as
the cost of running the affiliate
marketing campaigns (e.g., Google
AdWords campaigns, Facebook promotion, Twitter marketing, SEO adapted blogs).
there are many partnership types that define the Forex affiliate commission
and, like it or not, the smallest details may change the profitability of a
To help people finding out how to build
the right Forex affiliate
program, here are some pros for the various commission’s schemes that exist in online Forex trading.
CPA or Cost Per Acquisition
popular way to increase a Forex broker’s clients
base, the CPA scheme ends when the affiliates receive the payment. Typically, this happens after
the client opens a live trading account, fund it and takes the first trade.
love a CPA agreement as it guarantees the client brought in by the affiliate
manager is genuinely a trader. After all,
no payment is made until the client
if the client stops trading after the first trade, the broker has a hot lead on
its hands, and can quickly direct future
marketing campaigns to stimulate future trading.
the affiliates, the
advantage is that the CPA solution doesn’t depend on the volume traded.
Depending on the budget the broker has at its disposal, affiliates can earn more with a CPA solution than otherwise.
main concern of a business that acts as an introducing broker is to get the commission as quickly as possible. And, to be independent on
the traded volume. For this reason, the CPA appeals more to affiliates than the
revenue sharing scheme.
this scheme, the affiliates do not receive any commission when the introduced
trader opens a trading account. Instead, commissions start pouring as soon as
the trader begins operations on the currency market.
the Forex broker,
the advantage is that it will pay a commission to affiliates only if the trader is active. In other
words, the affiliates receive a part of
the Forex broker’s
earnings as long as the trader is active.
this arrangement is favored by the Forex broker, many
to see some money at the moment the trader opens an account, and then, if
possible, to receive some commissions under the revenue sharing scheme.
from the two programs do exist. Moreover, the affiliates adapt the affiliate promotion program to benefit the most
from the agreement they negotiate with the Forex broker.
such, hybrid solutions between the two commission schemes are the norm. Brokers
prefer to negotiate with every affiliate based on the size of their online business
and the possible number of traders introduced.
CPA seems to be favored by the affiliates, while the brokers focus more on the revenue sharing
program. However, they both work in the mutual interest of the two entities, as
long as there is cooperation and the will
to grow the business together.