Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing.
One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website.
There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.
Understanding CPA or Cost Per Acquisition
The broker pays only for the clients which end up opening an account.
The affiliate marketer doesn’t get any compensation unless the lead ends up depositing.
After the acquisition the broker kicks back a predetermined amount to the affiliate. The figure can be fixed or a percentage of a customer’s deposit.
This is where CPC or Cost per Clicks come into play. This option is used to drive traffic to the broker’s website.
The affiliate is getting paid regardless of whether the client ends up opening an account. Nowadays, this option is rarely used however
In the FX space, it is certainly possible to be successful affiliate marketer. However, you need to utilize websites with requisite levels of traffic.
For many brokers, affiliate marketing is not their primary source of revenue as the results can be unpredictable and sporadic.