Currency Exchange Marketing Explained

In the past few years more and more webmasters are discovering the power of forex affiliate marketing, where the income potential is truly sky rocking. Forex affiliate programs offer a golden bridge between you and the forex industry with a daily turnover of three trillion dollars. What is forex affiliate program exactly? How does this work and what are the earning potentials?

What is Forex Affiliate Program?

Website owners can earn money referring traders to online brokers via forex affiliate programs, also called partnership programs. There are at least three parties involved in an affiliate program:

·         Trader

·         You (the affiliate with a forex-related website)

·         Forex Broker

Forex affiliate program offers payment for traders referred from your website. As an affiliate you are entitled to a share of the profits that the referred traders bring to the broker.

How to Start?

Sign up with a selected affiliate program. In most cases joining process consist of filling in an online application. Once approved, via the affiliate account you will have access to tracking links, banners, mailers, landing pages and other advertising material along with statistical reports about referred traders, their deposits and your monthly share.

How Does it Work?

Each time a potential trader clicks on your affiliate tracking link, he/she is redirected to the broker’s site where he can register, fund the trading account and use a forex trading platform and tools provided. When a trader is referred by you, he/she receives a specific tracking cookie. All transactions of the trader, including deposits and trading activity, are linked to the affiliate – you ( this is relevant for CPA and Revenue Share plans discussed later on).

Forex affiliate program tracks the referred traders, provides charting and statistical reports and calculates your earnings according to the chosen commission plan. In most cases the displayed traffic report in your affiliate account is updated in real time.

Common Commission Structures
Each forex affiliate program offers different payment structures– some offer more, and some offer less. However, you should know the average numbers. Let’s see the common commission options:

1) CPA (cost per active trader)
CPA is a one-time payment for a referred trader which makes a deposit and therefore becomes an active trader. The agreed amount is paid for each referred active trader. The average trader’s value is in the range of $250.

With revenue share plan, forex affiliates earn a percentage of the total profits generated from the traders referred. This is the most favored arrangement among affiliates, since you earn percentage as long as the trader continues to trade. The average revenue share in the forex industry is around 20%.

3) CPL (cost per lead)

A CPL plan will allow you to earn a set amount for every referred trader who fills out the registration form and confirms the registration with a forex broker. Even if the referred trader will not make a deposit with a forex broker, you still get paid for the lead. The CPL plan is around $2-$5 for each trader you refer.

4) Hybrid 
Hybrid is a combination of several structures together. The most common among affiliates is a hybrid deal of revenue share and CPA. Each affiliate program has its own rules, so make sure to ask your account manager of this option and whether the hybrid deal would work for you.

Just like in gambling industry, there is no fixed figure how much a referred trader should make you in commissions. It can be as little as couple of bucks throughout their life trading, to an excess of $10,000 per month.

How to Get Paid?

Most affiliate programs have a minimum amount required to make a withdrawal. For example, it can be $100 for a transaction to Paypal, or minimum of $500 for wire transfer withdrawals.The affiliate earnings usually are transferred to your selected payment method in the beginning of each month.

There are few affiliate programs that allow you to make a withdrawal of almost any amount, anytime to alternative payment methods, such as paypal, neteller, moneybookers etc.

Summary

Forex affiliate programs are become more and more popular every day. If you want to have a shot at earning real money on the net, then forex affiliate marketing is the right choice for you. With the right amount of time, patience and effort, you can turn your affiliate experience into a true live-time profession making thousands of dollars per week.