In the recent months there has been a tremendous growth in various forex affiliate networks that have been set up. Surely this is a lucrative business considering the high affiliate commissions the forex and binary options industry pays out. While each of them claims to offer the best commissions available, the average forex affiliate is often not spoiled for choice but rather gets confused. The eternal question always hangs over, whether to join a forex affiliate network or to join the forex affiliate program.
Before we get into the details, a clear distinction needs to be made between the two.
A Forex Affiliate network is a third party, company that offers a single window solution to affiliates in order to promote various affiliate programs within the niche. The advantage of this is the fact that affiliates can join the forex affiliate network and gain access to various forex affiliate programs.
A forex affiliate program on the other hand is directly managed by the forex or binary options broker. The downside to this affiliate program model is the fact that if you wish to promote for example three forex brands, you would need to create three separate affiliate accounts with each of the forex affiliate programs respectively.
So what is the best approach for the average forex or binary options affiliate when it comes to choosing between a forex affiliate network or a forex affiliate program?
Choice and Variety
Undoubtedly a forex affiliate network provides access to lots of various forex or binary options merchants. This can be good if you want to diversify the number of programs you wish to promote and find it a bit too difficult to login to an independent affiliate program in order to check your stats or to update your marketing inventory. Also there are cases where a forex or binary options merchant does not want to manage their own in-house affiliate program. Joining an affiliate network does indeed give you access to lots of brands to promote that are otherwise unavailable.
Compromise on commissions
Irrespective of the claims a forex affiliate network would make about offering the ‘highest’ or the ‘best’ affiliate commissions, the truth is that you always get a better deal when you are directly promoting the forex or binary options merchant. The logic is fairly simple. Most of the forex and binary options merchants who offer their brands on an affiliate network often come with various overheads. Some forex affiliate networks ask for set up fee and various other charges that eventually reduce the commissions that is offered to their network of affiliates.
On a contrast, when you promote a forex or binary options affiliate program directly, there aren’t any hidden costs or any set up fees involved, which gives you, the affiliate a higher commission model.
Besides, affiliates cannot ignore the fact that when you are dealing directly with the forex or binary options merchant, you get to work with an account or affiliate manager who knows the product in and out and can provide valuable advise to help you gain the most from your traffic.
By default, when you think of an affiliate network, the first thing that comes to any experienced affiliate would be the level of reporting. Imagine if you had a report that could compare all the forex brands that you promote? Sadly, reality paints a different picture as there is NO forex or binary options affiliate network that can provide this level of reporting, which drastically weakens the case against working with an affiliate network.
Having said that, it is also a bit of a task to monitor performances across various brands as well. However, when promoting individual forex or binary options affiliate programs, the affiliate does have the option to manually compile a spreadsheet to compare the performance of the various affiliate programs that they promote.
Accounting & Commissions
If you generate small revenues from various affiliate programs, then a forex affiliate network is the best choice considering that the commissions paid to you are consolidated. This can be a disadvantage if you are promoting the forex or binary options brands directly.
Take for example Merchant A has a minimum withdrawal threshold of $100 and you only managed to make $50 in commissions. So for the month ahead, your funds are pretty much stuck, or rather ‘rolled over’ to the next month.
Considering this same scenario of you generating $50 from Merchant A on an affiliate network and you generated $50 from Merchant B, then you are able cash out your $100 if you are with a forex affiliate network.
But here’s where it gets a bit disappointing as most of the forex affiliate networks and even a few binary options affiliate networks set a rather high threshold, which really kills the point.
In conclusion, the choice to sign up with a forex affiliate network or to promote the forex brand directly with the merchant is purely a matter of mathematics and analytics. Every affiliate, experienced or not should at some point take stock of their activity and infact dedicate a good amount of time to do a quick check on how well they are doing, irrespective of whether they are promoting forex or binary options via an affiliate network or directly with the merchant.