What's the Most Profitable Model for Forex Affiliates | Apexum

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What’s the Most Profitable Model for Forex Affiliates

June 20, 2019

Forex affiliates 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.

Therefore, 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 traffic criteria.

Also, 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.

Even within the same revenue model, differences exist, based on the criteria mentioned above. Revenue share or rev-share is one of the most profitable payout model.

However, 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. 

Percentages 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 will become.

But 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.

For this reason, affiliates interested in a single payment for the introduced trader, there’s another payout type that works: CPA or Cost Per Acquisition.

Under 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.

Furthermore, 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.

In 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. 

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