Forex Affiliate Marketing Strategy – Forex Rebates

Listed Under: Forex IB

There are many factors that come into play when managing a successful forex affiliate program. While due focus needs to be given to the SEO side of things, forex affiliates need to focus equally well on having a good affiliate marketing strategy. The forex industry as one knows is highly competitive. In such a competitive environment, having a good marketing strategy to promote your forex website better helps to compensate and compliment the efforts put into developing a good forex affiliate website.

Making use of forex rebates is one such simple strategy forex affiliates can make use of in order to gain more conversions to their traffic. By offering such incentives, the visitor is more likely to sign up from your website. In order to make use of such a strategy, the forex affiliate needs to understand what are forex rebates and how they work.

How do forex rebates work?

It is really easy for the trader to start trading forex and earn rebates. Forex affiliates or Introducing brokers make relationships with Forex brokers so they can offer there customers a return for investing through them. These individual companies or forex affiliates bring new clients to the brokers, who in return give a rebate or a commision to the individual company. These cash refunds are then passed on to the trader. It is that simple.

Often refered to as affiliate or IB commissions, these range between 20% – to as high as 60% (with HotForex Affiliates). With such high margins, forex affiliates can easily re-invest the commissions and give back incentives to the traders that sign up through their website.

Understanding Forex Rebates

In order to understand forex rebates, forex affiliates and Introducing brokers need to understand the terminology of a pip. A pip is the increment of a currency, which is the smallest value of the currency pair. Let’s say the EUR/USD changes from 1.4220 to 1.4221, for a change of 1 pip. This increment is the difference between a positive and negative return on your investment. How does this affect you and your trading?

When you make trades with your broker, you pay a spread when you enter the trade. Assuming you trade the EUR/USD, the spread may be 1-3 pips or possibly more. For this example, we will work with a 2 pip spread on a standard size account. If you take a trade to buy the pair, you pay a spread of $20. This is automatically adjusted in your profit and loss statement. Assuming the trade goes in your favor, you will need the currency pair to move two pips to be at break even. Let’s not forget the $20. Whether your trade is profitable or not, you still have to pay the $20. Don’t you wish you could minimize your trading costs? Of course you do. This is where the power of working with an IB or signing up through a forex affiliate helps.

How to track and pay out rebates

Tracking and managing the rebates can be quite an ardous task if not planned properly. Before forex affiliates or IB’s can start promoting their rebate programs, pay attention to how you wish to manage this. Below are some quick checklist we give out:

• Speak with your forex affiliate manager who is managing your account and explain to them your strategy
• Ensure that your forex affiliate manager will send you a monthly report of the customers you send them (usually most affilate programs gives out extensive details on the customers you sign up that include their Full Name or their account username)
• Once you set up the process to start receiving monthly reports, have a section on your website that clearly points out how customers who sign up through you can receive their rebates. This could include having customers to fill out a form with critical information such as their email, full name and account user name.
• At the end of the month, a comparison of the reports between the users who filled out your form against the report provided by your account manager, you have a clear picture of the payments due to your customers.
• It is worthwhile to have a Paypal or Moneybookers account in order to process the pay outs to your customers.

Credibility

Some affiliates might fall prey to the greed and infact end up cheating on their customers. Remember while this unethical means might tend to gain you some short term profits, you wouldn’t be able to sustain such a business in the long run. Always be honest and up front with your customers.

In conclusion, with the growth of forex affiliate websites going online almost every other day, forex affiliates can keep ahead of the competition by paying due attention to their SEO and affiliate marketing strategies.