In this article you’ll know What is Affiliate program in Forex and Binary Options industry. What Is Rebates commissions plan, CPA commissions plan, CPL commissions plan, Revenue sharing commissions plan.
Everyone is investing in something nowadays. Those with the means are either opening businesses, investing in shares, or doing something that will generate a second income. Most people use the internet to search up their next profitable investment, and since forex mainly operates over the internet, it has attracted a lot of attention as well. For those who want to invest but do not know where to start from, the Forex affiliate programs are always an option.
What is an Affiliate program?
It is mainly a partnership between a Forex broker and a website owner which is profitable for both the parties involved and a good source of side income for the website owner. Of course, the relationship between the broker and the affiliate isn’t as simple, and one cannot just go into it blindly without any prior knowledge of what Forex is and how it works.
How the Affiliate programs work
You could easily Google up what Forex (or Binary Options) is and how it works, but to become an expert at it, you have to try it out yourself. You need to have the experience of working with it before you can use that knowledge to start with an affiliate program. As for the affiliate programs, a website owner is mainly supposed to take advantage of the traffic that they have on their website and promote the broker’s services. The website owner receives a commission for every purchase of the broker’s product/service through his/ her website. This is tracked using cookies or other tracking methods.
Rebates – affiliates (Introducing Brokers) receives commissions for a trades (volume) of their customers. It’s part of spread. For instance, an affiliate gets 0.5 pip for every standard lot
Rebates Plan – Most popular among Forex Brokers
CPA (Cost Per Acquisition / Cost Per Action) – Affiliates receives commissions when a referred client Sign-up and makes a deposit. Usually $150-350 per client.
CPL – (Cost Per Lead). Affiliates receives commissions when a referred client goes to landing page (marketing page) or open Demo account for example.
RevSh (Revenue sharing) – Affiliates receives commissions from the net revenues generated by each referred client (Lifetime)
Hybrid type – commission which involves some of above methods. For example CPA + Revenue sharing
CPA, CPL, Revenue sharing plans – Most popular among Binary Options Brokers
There are 2 different types of affiliate programs that are generally used to determine how much the website owner earns in commission; single tier and multiple tier.
The single tier works with the website owner referring a client to the broker, in other words, it works when the client clicks on the links that the website owner posts on his/her website and the amount of commission depends on how much the client spends on the broker’s services. It is called cost per action because the affiliate gets paid per action, as such as a click, submission of a form, etc. which in this case would be the client purchasing the broker’s product/service. Almost all Binary Options brokers works with CPA plan.
The multiple tier, also known as revenue share, works a lot more differently. In the multiple tier, you, as an affiliate can refer another affiliate to the broker, and you will receive commission on whatever profit the other affiliate makes. In other words, if the other affiliate brings in more clients, you will get a commission on that. However, this is a little more risky because unless the other affiliate makes profit, you will not make profit either. Your amount of profit becomes directly dependent on the other affiliate’s profit, and if the other affiliate decides to quit, your income will stop too.
Affiliate Programs – Getting started
Although it is easy to become a Forex, BinaryOption affiliate, you have to know what you are doing. You should not just jump in blindly without prior research and experience as, not only does that become a risky investment, but it could also ruin your prospects if things go wrong. After you have done thorough research and tried out Forex yourself, these are a few things you should keep in mind:
Knowing the tricks of the trade will certainly take you far in this case. You can make yourself seem more reputable by knowing about the service that you are promoting. It will convince the clients that you are experienced in this sector and will make them more likely to sign up and pay for the broker’s product/service themselves, because clients will also do a background research on you the same way you have researched on your broker’s company. So it will be wise to research and learn as much as you can.