Affiliate marketing is defined as a process by which an affiliate earns a commission in return for traffic or sales generated from marketing another company’s products.
In relation to forex trading, the principal actors involved in the process would be a forex affiliate marketing the products and services of a forex brokerage, or broker.
An affiliate will earn money when a forex trader is successfully redirected to a broker, which can come in the form of clicking a link or banner provided by the affiliate. The referral process will be also classified as successful, and the affiliate will earn a commission, when the trader signs up and registers for a trading account with that specific broker.
Top 3 key features of affiliate marketing
There is no single, generic affiliate marketing plan, or ‘one size fits all’ approach, as several factors can influence the structure and terms and conditions of each individual marketing strategy. Various aspects include the requirements of the forex broker, the materials and resources available, and the operational capabilities of the forex affiliate.
However, there are several key features that form an important part of affiliate marketing, with three of the main ones outlined below.
- Effective partnerships
- Marketing resources
- Commission structures
The development of a solid partnership between the forex affiliate and the broker is a vital contributing feature towards a successful and long-lasting affiliation. The strength of the relationship between the two parties cannot be overstated, as this can be mutually beneficial to both actors involved. From an affiliate point of view, partnering with a recognised and regulated broker – with an established affiliate program – can offer greater earning potential and ongoing success.
When choosing which forex broker to partner with, affiliates will need to consider the marketing tools and resources available. These make up an important part of any affiliate program, as they can lead to high conversion rates for the affiliate and broker. Key tools include customisable banners, converting landing pages, state-of-the-art landing pages, widgets, and other branding and promotional materials.
The commission rates and pay-out options on offer can vary between the many hundreds of forex brokers with an affiliate program in place. There are several different pay-out plans available on the market today, with one of the most popular methods being the cost per acquisition, or CPA. This is where there is a fixed commission for each qualified trader referred to a forex broker. Other pay-out types include revenue share, hybrid, and cost per lead structures.
How to become a good affiliate marketer
A major part of a successful affiliate partnership is the program offered by the forex broker, in terms of the range of marketing features on offer. However, affiliates can drive their own success themselves by focusing on maximising their own performance.
Planning is important when it comes to properly developing an effective forex affiliation strategy. Selecting a trustworthy and reliable broker is a good place to start, and it can take time to find a suitable company in what is a highly competitive marketplace.
Establishing, maintaining and regularly communicating with clients is also a significant driver of affiliate success. Keeping existing clients happy is a skill in itself, but ensuring that potential clients are attracted to what is on offer is equally crucial.
Before entering affiliate marketing, specifically within the world of forex trading, an affiliate needs to know what the priorities are, what the goals are, and how they intend to achieve them.
Disclaimer: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication