Affiliate or simply Partnership program is a very popular and widely spread method that is used for promoting brands, companies, web-agencies, etc. It is the most prospective way to start your online business nowadays. Any affiliate program allows gaining profit by referring clients to a partner (company’s) site. Schemes for attracting web-traffic can vary according to the particular affiliate program conditions. For example an introducing broker or agent may place referral links, text ads or graphic banners on his affiliate website or may use external advertising grounds like forums, blog comments, social networks and of course advertising platforms like Google AdWords, Yahoo and others. Every time a potential customer opens a new account via the partner’s referral link, he starts earning his reward (affiliate commission) which depends on his status and revenue scheme of the program. The aim of this page is to explain why participating in Forex affiliate programs is the easiest way to start your online business.
It is important to note that a well-settled Forex affiliate program must be mutually beneficial for both parties: introducing brokers (partners) and of course the brokerage company. The main principle of such business relationship is quite simple – the broker strives to attract more visitors and gain more active customers (traders and investors) while the Forex affiliate program participant seeks to make profits by bringing these visitors (potential customers) to the company’s website. Forex affiliate programs are diverse in its conditions and revenue schemes. Moreover and what is more significant, they can be one- or multileveled, therefore we decided to classify them by this parameter.
One Tier (Level) Affiliate Programs
One tier or level is the most spread and popular version of affiliate program nowadays. One tier means that affiliates will receive their commissions only from their referrals and will not get payments from referrals of their referrals in case they become program participants too (it would be a second tier). As for today, many one level affiliate programs still exist all over the Internet and many of them are still opportune.
Not so far ago one tier affiliate programs seemed more profitable as their founders offered higher commissions for their partners but the situation has changed a few years ago. There are some certain privileges in using one tier programs but we will not discuss them in this section.
Multi Tier (Level) Affiliate Programs
Multilevel programs are two or more tier programs that mean that introducing brokers will get commissions from every direct client (1st tier) plus particular percentage from other non-direct clients (referrals brought by their referrals) on 2nd, 3rd tier and so on. Undoubtedly two tier programs are very popular today but there also exist brokers that offer up to 5 levels which surely look very advantageous for active and experienced Introducing Brokers.
Revenue Scheme Examples
There are two main revenue schemes regarding Forex affiliate programs: particular percentage from revenue sharing or Cost-Per-Action (CPA) scheme. Brokers may offer both options but the affiliate can choose only one scheme of cooperation.
Cost-Per-Action/Acquisition or simply CPA means that an Introducing Broker will get an instant payment for every client depositing some funds to the brokerage company. Such payments are usually equal to the deposit amount but have limits according to affiliate’s status and other program conditions.
Percentage from revenue scheme is more popular nowadays and it is also more efficient for the long run approach to business. Participating in a program with such scheme, an Introducing Broker will earn a revenue share (usually set in percents) of the revenue that the brokerage company gains from his referred clients. It is important to note that the revenue percentage level usually depends on the IB status – the more referrals he brings the higher status he obtains.
Let us consider examples of the affiliate reward schemes for introducing clients to the brokerage company he cooperates with.
CPA Affiliate Program - One Tier:
Commission limit is set to 200 USD.
The IB refers 2 clients:
First opens an account and deposit 100 USD;
Second deposit 500 USD.
IB’s total commission would be 100 + 200 (because 200 is the limit) = 300 USD.
Percentage Revenue Sharing - One Tier:
The Affiliate gets a 30% revenue share of the earnings the Broker earns from the referred clients.
The Affiliate attracts one active trader who replenishes his account and performs one deal of 1 lot (we assume that the 30% commission for performing one deal is equal to 10 USD for easier counting).
Thus, the reward would be: 1 lot * 10 = 10 USD
The incomes will definitely grow as trading does not end by performing one deal.
CPA Affiliate Program - Multi Tier:
Commission limit equals to 200 USD.
The IB gets 10% of his referral partner (affiliate) reward as a second tier.
Let us assume the Affiliate refers 2 clients and one of them becomes an affiliate too.
First client deposit 100 USD.
Second client deposit 200 USD and also earns 500 USD by attracting clients as well.
Total commission would equal to: 100 + 200 + 50 (10% from 500) = 350 USD.
Percentage Revenue Sharing - Multi Tier:
The Affiliate commission equals to 30% from the 1st tier clients and 10% of the 2nd tier partner reward.
Let us suppose the Affiliate refers 2 clients including 1 second tier affiliate partner.
Both clients replenish their accounts and start trading by performing 1 commercial deal of 1 lot each (assumed 30% commission size equals to 10 USD).
Referred Affiliate (2nd tier partner) reward equals to 100 USD.
1st Tier Commission would be the following: 1 lot * 10 (assumed commission size) * 2 (amount of clients) = 20 USD;
2nd Tier Commission would be equal to: 10% of 100 = 10 USD;
Total Commission would equals to 20 + 10 = 30 USD.
Taking into account that an average trader performs 100 deals per month the incomes will grow correspondingly.
Forex Online Business Advantages
As any other business model, participating in Forex affiliate programs has its certain pros and cons. Advantages of becoming an IB (Introducing Broker) are listed below and most of them are really obvious. Talking about difficulties you might meet during the whole process of active introducing and searching for new clients, we cannot but mention that every novice need a good practice and you will not rise thousands of dollars for free. Yes, this is online but business and as in any other field you will need to make some investments of funds and time! Nevertheless, understanding all the peculiarities of online marketing and commerce, we state that it is far more easily to start online business by participating in affiliate programs than founding something equal offline. Signing up for any of the List of Forex affiliate programs featured on Broker-Rates.com you will get some definite advantages:
- there is no need to register your online business anywhere means you can act as a private individual;
- you will not get taxed by the governmental institutions of your or Broker’s country;
- you can start attracting new clients without any investments;
- signing up for Forex affiliate programs is absolutely free and takes only a few hours (there are no monthly or other covered fees);
- there are no language barriers because most brokers accept clients from all over the world (except some restrictions according to US residents);
- you can introduce clients online and offline as well: use local mass media sources, hold seminars or even studying courses – whatever you like;
- it is not necessary to own a personal web-site but we can construct it for you!
- you will get all the essential marketing and statistical data from thorough reports and support provided by brokerage companies for free;
- no contracts or obligations – you may start, finish or postpone your activity whenever you like without losing your IB status.
As you see, there are plenty of advantages for starting you career as an Introducing Broker. Online business by means of Forex affiliate programs seems to be a modern and delicious alternative for those individuals who strive to keep abreast of the times and make more money for less spending.
Acting as an IB of various brokerage companies, Broker-Rates.com team is interested in partnership with people from all around the globe. Using our long term experience in introduction and promotion we provide a useful Affiliate Marketing Guide which will definitely help you get more efficient results and safe some of your money and time. We will gladly construct a modern and unique web-site for the most diligent partners and provide them with some additional promotional materials on their demand.
If you consider yourself as an active but patient, willing and diligent person view our Top Forex Affiliate Programs List and start your online business.
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