Advertising costs a lot of money and does not always give the desired result. And then partner marketing comes to the aid of companies. Affiliate marketing is a way to promote a business on the Internet, where a partner attracts visitors to the company and receives a reward for one of them who has committed certain actions: bought goods, subscribed to a service and the like. Affiliate marketing allows you to make advertising company more effective, because partners are paid only for real customers.
Compare, for example, with banners, where it is necessary to pay for their displays, regardless of whether customers pass to the company’s website or not. And even after the transition, visitors may not make purchases or other necessary actions, therefore, money for advertising will be wasted. What is an affiliate program? The partnership program is a set of rules for cooperation between the company and its partners. It is for them to determine how you can and how you can not attract customers, for which the partner reward will be paid, what will be its size, and so on. Affiliates come in different types.
The most popular of them can be called CPA (cost per action) and CPS (cost per sale), in which compensation is charged for the action performed by the client or the purchase of goods / services, respectively. Summing up all of the above, we get 4 simple steps to earning money on an affiliate:
1. registering in the company as a partner,
2. attracting new customers …
3. who make purchases or other actions,
4. and get a reward from the company for this
Everything is very simple! How does the account of attracted customers take place? Each partner receives a special affiliate tag, which is added to the link to the company’s official website. When you navigate through such an affiliate link, the client automatically “binds” to the partner. Most often this is done through cookies in the browser. The time of their “life” can be very long and even if the client makes the necessary action several months after the first transition through the affiliate link, the partner will still get a reward for it. Where does the reward for a partner come from? The partner’s reward is a part of the company’s profit. For example, a firm sells some goods at $ 100, while its profit is $ 10.
If the partner reward is 20%, then the partner who attracted the client who made the purchase as a result will receive $ 2. Of course, this is a very simplistic version, but he describes the essence. One can only add that whatever the amount of compensation offered by the company, for it it will in any case be profitable. Otherwise, there is simply no sense in creating an affiliate program.
What is a multi-level affiliate program?
A partner can attract not only customers, but also new partners – the so-called sub-patners.
In this case, clients of sub-patners will also bring profit to the partner. It turns out something like a pyramid, where the partner is on top, below are customers and partners of the second level, even lower – the third level and so on. This is called a referral system. The partner receives compensation from clients of each level, and the lower the client in the pyramid, the smaller the amount of compensation. An example is shown in the picture below.
Affiliate programs from forex brokers Forex brokers offer different variants of affiliate programs, but for a common man the most suitable is a web partnership, which is most often called “Introducing broker” or IB (Introducing broker). Participation in such an affiliate does not require investments, and the attraction of clients on the Internet takes place through affiliate links. Spread or commission for opening a transaction is the broker’s profit, therefore, depending on the company, the partner’s reward can be expressed as: percent of the spread / commission (for example, 65% of the spread); the number of points from each transaction (for example, 2 points from a closed order); a fixed amount from a transaction of 1 lot (for example, $ 10 / lot).
By the way, partner remuneration can be paid not with each transaction, but only with those that meet the conditions: MTP (Minimal Trade Points) – minimum profit / loss in points (for example, at least 5 points of profit / loss); MTT (Minimal Trading Time) – the minimum lifetime of the transaction (for example, not less than 1 minute). Most of the partners are multi-level, so the company can attract both clients (traders, investors, managers) and partners, creating an extensive partner network.