Multi-Level Affiliate Program - Main Points | Apexum

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Multi-Level Affiliate Program – Main Points

June 20, 2019

A 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.

Also 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.

Almost 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.

The 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.

An affiliate program 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.

The 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

The 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.

With 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.

During 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.

The 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?

As 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.

For 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.

For 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.

All 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.

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