What’s the Most Profitable Model for Forex Affiliates
June 20, 2019
have many possibilities to choose from when associating with a Forex broker.
Depending on the size of the affiliate business, the website, landing pages,
social media presence, and so on, the Forex broker estimates the ability of the
affiliate to sign in new clients.
the introducing broker
can negotiate a better deal, the more (and qualitative) traffic brings. A
brokerage house has different deals available for affiliates, depending on the
the Forex broker is
interested in gaining as much exposure as possible. For this reason, it will
always favor affiliates that have a central
website, multiple landing pages, LinkedIn account, Facebook and Twitter accounts, as well as an up-to-date YouTube channel.
within the same revenue model, differences exist, based on the criteria
mentioned above. Revenue share or rev-share
is one of the most profitable
not all affiliates
are keen to work with a revenue share model. The sound of the model is
appealing, in the sense that affiliates earn a percentage for the entire trading
life of the persons they introduce. That’s something, but it comes with a
condition: it depends on the trader if it is an active one or not, and for how
long he/she will trade. With variable income stream generated by the rev-share model, many affiliates look at some
other payout type
for the brokers they want to introduce clients too.
offered by the broker vary. The extremes can be as low as five percent, but in some cases,
the broker is willing to share as much as a quarter of the trader’s generated
revenues. Why such a difference? The bigger the Forex affiliate program’s protection, the more
appealing to the Forex broker
not all affiliates
want to work with such a payout model. Because
it depends on so many variables, it doesn’t generate income quick enough.
this reason, affiliates
interested in a single payment for the introduced trader, there’s another
payout type that works: CPA or Cost Per Acquisition.
this kind of arrangement, the introducing broker gets paid a lump amount for every trader introduced.
However, the amount depends from broker to broker and conditions too. For
instance, the broker may impose some limitations like the payout model will
generate real income only if the trader funds a live account.
it may limit the amount of time the trader has to fund the account. Typically,
a limitation like this may take up to twelve months. If the trader doesn’t fund the live account and trades, the affiliate
won’t receive any money.
other words, the affiliate program ends with introducing the trader, but it is not as successful as the trader doesn’t
generate revenue according to the conditions set by the broker.
Apparently, the ideal model for the Forex trading industry is
a combination or a hybrid between the two. It may come in the form of choosing
one payout type to work with a broker and the other with another broker. This
way, the affiliates make the most of the opportunities in the online Forex industry.