Forex and binary options have finally made it to the mainstream internet business. There are enough articles from experts that talk at length about the volume of turnover in the forex industry and also the growth of the binary options market. With growth comes competition and the run towards gaining market share. A good indication of competition in an industry is to take a look at the cost per click for forex, binary options and financial related terms. The logic is simple. More the number of advertisers bidding on a keyword, higher the competition and higher the cost per click is going to be.
The forex industry has also given risen to an eco system of it’s own, with products such as forex auto trading, forex signals and so on. So looking at the forex industry from a larger perspective there are a lot of businesses and companies out there looking for ways to increase their exposure.
So in such a competitive market, how do forex brokerages go about in acquiring new traders? The answer lays in forex affiliate marketing. Affiliate marketing has been around for more than a decade and has evolved over the years. While cost per click is popular, affiliate marketing is on the same level. Referred to as ‘pay for performance’ the affiliate marketing models allows forex brokerages to expand to new markets through affiliate marketing.
If you own a website that is related to forex, chances are that you might have been contacted by forex companies who would want to put their banners on your site. While it might seem a flattering proposition for some, or just a regular business deal for others, how does one go about evaluating which forex affiliate program to promote?
We list out five tips forex affiliates need to bear in mind to make a personal evaluation on whether or not to promote the forex broker.
History and background
As with anything in life, it is always imperative that due diligence must be given to do a quick background research on the forex broker. One of the easiest way is to google them and also contact webmasters who are already promoting the forex broker in question and ask them about feedback. A broker with a bad history will not go too far into the business. Also visits sites that keep a track on forex affiliate programs in order to know more about the forex broker and the forex affiliate program they manage
Read the terms and conditions
Terms and conditions are lengthy and complicated and for a reason. While they carry critical information, terms and conditions are designed to be reader unfriendly. However, it always makes logic to read through the terms and conditions of a forex affiliate program before you start promoting them. It is better to be fully knowledgable than to blindly sign up for an affiliate program only to get burnt later on
Payments are the lifeblood of affiliate marketing and forex broker who have issues with payments definitely won’t be able to last long in the business. Another factor to look into in regards to affiliate payments include
- How often are payments made
- What are the payment methods available
- Are there any fees or service charges levied on affiliate payments
Always prefer a forex or a binary options broker whose affiliate program pays out using any of the eWallets such as paypal or moneybookers or even bank WIRE. Never open another eWallet account only because one affiliate program pays through that method, unless ofcourse you expect to see huge commissions.
Without a good affiliate tracking system you will have no idea on how many referals you sent or how much money you have made. The first things to do after signing up is to test the tracker yourself. It is always a good practice as well. When testing trackers look for information such as:
- Tracking of impressions (if the affiliate system allows for it)
- Tracking of clicks
- Tracking of leads
- Tracking of sales
Also it is good to know how often the affiliate statistics are updated so you don’t waste your time refreshing the stats page every 1 hour.
Communication is key in any business setting and life in general. An affiliate program might be offering you the highest commissions and the greatest banners but it would be futile if the support is very bad. Always insist on having a direct contact with the affiliate manager. This way you can work closely with them and the affiliate managers can also help you in converting your traffic better or assist you in creating any custom banners you might need.
This is very subjective and the choices vary from one affiliate to another. As a thumb rule promoting regulated forex brokers is always a safe bet and will also ensure that your conversions are good, besides the point that it is ethical in a way. However, there have been instances where in un regulated forex brokers have managed to provide a great level of service that surpasses even the regulated brokers. The bottom line being that it doesn’t matter if a forex broker is regulated or not as long as they uphold ethical business practices.
In conclusion, the above pointers should be used a general guideline for affiliates looking to promote forex affiliate programs. There are good and bad apples in any aspect of life and the affiliate marketing industry is not very different. Do not fall prey to the marketing pitches that talk about high conversions. Every website is unique and conversion rates vary from one site to another.