At May’s iFX EXPO International conference in Limassol, Cyprus, our VP of Strategy Sarafina Wolde Gabriel hosted a workshop on affiliate marketing in the financial trading space.
In this blog post, we recap the workshop’s key points. You can also check out the PowerPoint presentation, which is embedded below, for more info.
The Benefits of Affiliate Marketing
In Cyprus, Sarafina emphasised that affiliate marketing provides a lasting and sustainable trader acquisition channel for forex brokers. Compared to media buying and pay-per-click (PPC), it’s also low-risk. This is because brokers only pay for converted traders, rather than ad impressions or ad click-throughs respectively.
She also highlighted the channel’s cost-effectiveness. Affiliates act as a sales force that are only paid for actual results (converted traders)and are also great ambassadors for a forex brand. Along with being a sustainable acquisition source, a mature affiliate programme also provides balance in the way that it’s an additional marketing channel that diversifies brokers’ marketing mixes and ensures greater revenue.To maximise success, Sarafina pointed out that your affiliate programme should be integrated with your broader digital marketing strategy. Along with affiliates, PPC and media buying, brokers also need to juggle other areas such as organic and paid social media content, app store advertising and content marketing.
Why are Affiliates so Valuable to Forex Brokers?
The workshop revealed that affiliates are useful for communicating your offering’s unique selling points (USPs) and other incentives for traders to sign-up. Because of their ambassadorial skills, affiliates not only provide third-party endorsement but also impart trust to traders. During the early stages of a programme’s development, this is great for boosting visibility.
Sarafina also mentioned how affiliates are a great feedback source for both customer service and product quality. They’re able to suggest enhancements and updates that’ll improve the standard of your offering. In addition to this, they’re very tech-savvy. Their intelligence on industry and tech trends mean they’re ahead of the curve on new online tools and features.
What Rewards do Affiliates Get?
Sarafina said that it’s not just brands who benefit from stronger loyalty. Successful programmes cultivate close-knit partnerships, leading to a relationship which is mutually-beneficial.
The session highlighted that successful partnerships also unlock opportunities elsewhere. As affiliates drive more traffic, chances to work within more verticals arise – so gaming affiliates are increasingly moving into the forex space and partnering with brokers there. The tighter bonds, nurtured by these collaborations, are further enhanced as trust and results grow.
Attendees also discovered how the channel generates a constant revenue stream for forex affiliates. Commissions are paid out monthly, with more money being earned as a higher number of traders are attracted and then converted.
Tips for Running a Successful Affiliate Programme
Sarafina emphasised the importance of good customer service when it comes to affiliates. She explained how brokers should provide dedicated support, which is tailored for each individual affiliate. This links to brokers’ obligation to be both honest and open, and their customer service should be consistent.
The session also emphasised that brokers’ commissions and payments, when it comes to models such as such as cost-per-acquisition (CPA), revenue share, hybrid, flat fees and tenancy, should be flexible. A competitive structure should be adopted, while flexible and timely payments will boost trust among the affiliate community.
Sarafina also said that, when recruiting affiliates, brokers should set clear boundaries. This includes developing suitable terms and conditions, as well as stating clear rules. You should also be on hand to advise them on tactics to improve and enhance their conversions and performance.<iframe style="padding: 0; background-color: #fcfcfc;" title="Preview" src="/fileadmin/contenthub/wp-content/uploads/2018/06/Income-Access-Benefits-of-Affiliate-Marketing-2018-iFX-Workshop5.pdf" width="630px" height="417px" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe>Delegates in Cyprus also discovered the importance of robust software to maximise your programme’s efficiency. It was also mentioned that marketing tools should be engaging and deliver a clear message. Banners and landing pages are proven conversion methods, while affiliate and trader promotions will also contribute to the successful implementation of your acquisition strategy.
At Income Access, we offer a comprehensive affiliate software solution for financial trading brokers. Our software partners include GAIN Capital and ETX Capital. To find out about this, plus our other affiliate marketing services, please reach out.