Popular Forex Affiliate Commission Plans and the Right for You.

If you have been much into forex marketing, you might have realized that companies offer varied commission formats/plans. For a beginner, it can be tricky to settle on a particular plan. Whether you want to start your forex affiliate program or run a forex affiliate campaign, it’s good to understand these commission plans.

Your cash requirements and the broker’s payout period greatly determine the commission plan you choose. In addition, your financial needs and traffic types determine the plan you take for your marketing program. For example, you should go for a commission plan that pays a high commission within a short period if you are working for urgent cash.

Contrary, go for high potential commission plans if you don’t intend to use your profit in a short while. Whichever the case you prefer, most brokers offer several options. You’ll get at least one forex affiliate commission type that is suited to your needs and preferences. Here are the most popular forex affiliate commission payment plans:

Revenue Share.

Revenue share commission payment plan is where marketers are paid percentages of the total trading fees that your referral traders generate for the broker. For example, if an affiliate program offers a 20% revenue share fee, you’ll receive $300 when your referral traders generate $1,500 in trade fees for the broker. Most companies calculate the commission monthly.

The broker continues to pay you commission for as long as the traders you referred keep generating income for the company. The higher the trader fees, the higher your commission because the percentage is fixed.

This type of commission is best suited for affiliate marketers with a wide base of referrals you can contact directly. For instance, you could be having a blog site and your site visitors have subscribed to your email newsletter.

CPA Commission.

CPA stands for cost per action and it’s the most popular forex affiliate commission type. Affiliate marketers are only paid when their leads “take an action”. In most cases, brokers offer a commission when referrals deposit cash in the accounts they create. Some few pay a small commission when referrals sign up for an email newsletter.

Sometimes, you can receive CPAs worth hundreds of dollars and are mainly paid for referrals when they make their first-time deposits into their trading account. CPA commissions are usually high and are paid for a single pre-agreed action by referrals.

Cost per action (CPA) commission is preferred by many forex affiliates because of the simple conversion process. Marketers also love it due to high commission payouts. It is a great option if you run paid ads for your link marketing.

Hybrid Commission Scheme.

This is the third type of forex affiliate commission plan that combines the other two payment plans. Marketers will enjoy a CPA and revenue share for all referred traders. However, it comes with a lower cost per action and revenue share than standard CPAs or revenue share respectively.

Though it’s not very common, it is gaining popularity among marketers to wish to diversify their commission payment. You will receive a portion of your commission immediately after a client deposits funds while the other one comes every month based on your referrals’ generated income.

Choosing a Forex Affiliate Commission Plan.

It’s possible to come across a company that offers all three types of affiliate commissions. However, selecting the right plan isn’t obvious. Sometimes, it can be tedious and confusing.

The key factor in the commission type to choose is the kind of traffic or audience you use to generate leads. For a marketer whose audience is from media buying, it would be best to go for CPA. A media buying campaign will only help you to get clicks and hence the first-time deposit will earn you a commission. You don’t have a chance to contact individual clients for further discussion or explanation.

If you have contacts to your traffic, you should consider the revenue share or the hybrid model. With this type of traffic, it’s easy to engage them and probably influence their trade decisions. Failure to trade by your clients means that you won’t get a commission. That’s why it’s vital to engage your traffic. The more they trade, the more you earn at the end of the month.

It’s also paramount for a marketer to consider his/her traffic location. If your leads have higher deposits, it translates to more trading fees and higher commissions. Countries listed under Tier-1 have higher first-time deposits and trader fees volumes. For example, you are assured of your traffic generating higher trader fees than a more or equal number of active traders in Italy. This means that you should choose a hybrid or revenue share plan if you are targeting German traffic.

You can also decide to test these offers to see the one that gives the highest returns while considering your need for cash. The plan that gives you a higher commission with maximum convenience is best for you.

After creating a forex affiliate account, the brokers will assign you a personal affiliate manager. This is the person who should guide you in picking the right commission plan that meets your business needs. The managers who are highly experienced in the forex industry will consider your traffic geos as well as your business goals before choosing a commission plan.

Final Thoughts.

Anyone who is in forex marketing is doing it to earn a commission. However, if you aren’t keen, you might work tirelessly and take home a few pennies. The most vital aspect of this is understanding your traffic patterns. Knowing your audience before you embark on choosing your commission type is crucial.

You need to critically analyze your business’s short and long-term goals to avoid conflict of interest or other possible inconveniences. Sometimes, inconveniences in payments might demoralize you and end up leaving the business. Take time and see when you probably need your funds before choosing a payment plan. With this information, we believe that your choice will be perfect and you won’t regret it in the future. Fortunately, you are free to change your commission scheme if it doesn’t suit you.

Jennifer Alex

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