By: Sarafina Wolde Gabriel, VP of Strategy, Paysafe’s Income Access
Sarafina Wolde Gabriel is VP of Strategy at Paysafe’s Income Access. Sarafina focuses on growing the Income Access brand and driving the evolution of the company’s suite of products and services. She has over a decade of digital marketing experience.
While forex brokers are increasingly familiar and adept with leveraging the strategic and technological advantages of the affiliate marketing channel, it is still considered as an emerging trend in the industry.
Fortunately, even if the concept of affiliate marketing remains somewhat intangible to many, its corresponding benefits are comparatively straightforward and easy to appreciate.
Chief among these benefits is a consistently mounting emphasis on transparency. One example of this evolution can be seen in the enhanced regulatory standards and practices across a range of markets.
The trading landscape also provides a practical example of the collaborative role that affiliates can play, working alongside their advertising partners to strengthen their respective positions and that of the industry.
Bolstering expectations for transparency in affiliate marketing is the broader, all-encompassing realm of marketing technology (martech), which according to Chiefmartech.com, included fewer than 200 total solutions worldwide in 2011.
Today, Chiefmartech.computs that number at over 7,000 solutions, considering everything from affiliate marketing to sales automation to digital asset management.
What this means for affiliate marketing is that it cannot measure its standards for transparency and trust within a vacuum, as it will inevitably be compared to the progress being made in other segments of the martech space. These comparisons can apply to platforms, practices and even personnel.
As forex brokers strive for sustainable growth, especially new ones trying to break into the market, they will need to evaluate solution providers based on several criteria, including cost, scalability and reputation.
The importance of reputation is amplified when it comes to affiliate marketing, as it applies to the unique experiences of both affiliates and brokers with a given provider.
Whether established or new to the market, forex brokers need to approach the practice of affiliate marketing with a mindset that prioritises the affiliate experience, always asking the question: “How does this benefit our marketing partners?”
In the case of affiliate tracking and reporting technology, brokers will first want to be certain that a solution meets the unique needs of their business.
But they must also ascertain whether its design will sufficiently empower affiliates, equipping them with the level of data transparency and accessibility needed to optimise their marketing campaigns, spend and strategic decision-making process.
Put more plainly – a forex broker’s choice of affiliate marketing platform is the first step in building a durable relationship with its affiliate partners.
Subsequent choices, including those associated to affiliate support services, bespoke marketing materials, flexible payment options and more, need to be equally motivated by a commitment to transparency.
Many top-tier affiliates, regardless of whether they operate in forex, high-end retail, hospitality or iGaming, are often just as well-versed in an industry’s subject matter as the company with which they are partnering. It’s important to remain conscious of this when determining the components that will drive one’s business.
By recognising the need of affiliate partners to have access to transparent performance data, open communications and competitive compensation models, forex brokers can build relationships that will more effectively incorporate the knowledge of affiliates to inform acquisition and retention strategies.
In its 2016 triennial survey, the Bank for International Settlements (BIS) reported that turnover in global forex markets had shrunk for the first time since 2001, with an average turnover of $5.1 trillion per day. Regardless of what the 2019 survey will ultimately reveal, there will exist and even stronger case for forex brokers to implement an affiliate marketing strategy.
The forex market is still sizeable enough to attract a strong pool of affiliates, willing to invest their time and insights to tackle challenges and make the most of the opportunity before them.
The responsibility of forex brokers is to ensure they can speak to affiliates in a manner that reflects an appreciation for transparency, trust and investment in mutually beneficial relationships.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.