Multi-Level Affiliate Program – Main Points
June 20, 2019
variation of Forex affiliate marketing, multi-level marketing refers to pyramid
selling. In plain English, affiliates make money with every other trader
introduced by other affiliates.
called referral marketing, it is a great
way of expanding the Forex
affiliate business by associating with other similar business that acts as an introducing broker.
Typically, these types of partnerships are born during Forex expo’s.
every calendar month a Forex
expo takes place somewhere in the world, with the purpose of bringing together
the brokers, on the one hand, and the
affiliates, on the other hand. Rarely the
number of traders that visit such shows exceeds the number of affiliates.
advantage of a multi-level
affiliate program is that the revenue paid by the broker is shared between different introducing brokers
according to the agreement. Also, a central role belongs to the commission
scheme in place.
that allows multi-level marketing pays different commissions depending on the
affiliate level. For instance, if the introducing broker refers to three traders to the broker, and one
of the three traders refers other three, the initial introducing broker will
get a commission from that trader too. Naturally,
a smaller one.
commission depends on the revenue scheme and the type of the trading account
the trader will use. For instance, a trading account that uses the STP (Straight-Through-Processing) has a different commissioning than one that uses
ECN (Electronic Communication Network), and so on.
How to Build a Multi-Level Affiliate Marketing Program
Forex broker is
interested in offering the best possible conditions. One way to attract people
and stimulate them to be part of a multi-level affiliate program is by
promoting Forex competitions, for instance.
the launch of a demo Forex
contest that ends up with real prizes, the broker stimulates traders to join
and see the advantages of trading the currency market. Forex trading has long been extremely popular among online retail traders
due to the opportunities offered.
the registration process, the broker provides a referral link to the trader,
with an incentive to post the link on as many financial websites as possible.
Any trader that joins the competition and comes from that link will be part of the Forex affiliate program.
broker dictates how many layers the affiliate marketing program has. It can stop at three layers or
continue down the road. However, more than three levels are difficult to handle as splitting the commission
becomes a hustle.
Why Starting a Multi-Level Affiliate Program?
online trading expanded, there are businesses
that run huge affiliate numbers. Cooperating with such entities is on
the Forex broker’s
benefit as it will attract more traders.
the Forex trader wannabe, the advantage is that it becomes familiar with the
ins and outs of trading the currency market. With no costs, but with the
potential of winning a real prize, the trader is willing to try its chances and
see how things work.
the affiliates, partnering with brokerage houses that allow multi-level marketing
(not all of them do) is a great way to expand
the online business.
in all, all parties involved have something to gain (the brokerage house, the
affiliate and the trader), as long as all
of them respect the rules of engagement.