The broker affiliate program usually entails the two most popular cooperation models – RevShare and CPA. These models allow the sellers not to waste their money on ineffective advertising, and webmasters and those involved in traffic arbitrage to earn money by attracting users.
These two types of cooperation models have different reward schemes. With the CPA cooperation model, the payment is fixed and is made for each attracted user. The RevShare model is based on sharing the revenue with a partner (advertiser). In this article, we’ll talk more about the RevShare model and tell you how you can earn from it in the trading industry.
RevShare business model
RevShare stands for revenue share or revenue sharing. The bottom line is that an advertiser sets a certain percentage of their income and shares it with a partner, for example, a webmaster who has placed the advertiser’s offer on his platform (a link to the product/service).
An affiliate’s (webmaster’s) income isn’t fixed within this particular revenue model. The affiliate reward is floating and is calculated as a percentage of profit generated by the company (RevShare). In other words, the partner can attract a client just once and receive a commission that lasts for the client’s lifetime, i.e., as long as the attracted client works with the company. Everything seems quite simple. But as practice shows, the RevShare model has its intricacies too.
One of them is to ensure that the attracted client doesn’t just register an account and place a few trades. It is important that this client becomes an active trader who will generate a steady income for the broker and hence, the partner. So your target clients should be either professional traders who consider trading their permanent income source or those who want to become one. In this regard, you need to carefully approach the choice of your traffic source. These can be such resources as:
- Personal website promoted to the top of search results using certain search queries;
- Telegram channel that publishes market forecasts and analysis, trading ideas, educational materials, etc.;
- Advertisements on forums dedicated to trading in the financial markets and various trading communities.
Each of the proposed traffic sources requires a specific approach. So, Telegram should focus on interested and loyal users. And for forums, choose reliable brokers with an impeccable reputation.
Who can benefit from the Revenue Share affiliate program?
The Revenue Share affiliate model may not be suitable for all webmasters, as it does not promise big immediate payments. This is due to the fact that commission within this revenue scheme is paid based on the attracted clients’ total net deposits. Therefore, to build a steady income stream, you need to attract many active clients who will bring money to the company regularly. And this can take some time.
In addition, RevShare affiliate program may be suitable for those who already have their audience “warmed up,” i.e., potential clients who are ready to start their journey in the financial market, even if it takes a long time. If some of these clients succeed and make trading their profession, the commission money will rain down on you.
Tips for beginners: How to start earning with RevShare
First of all, we should tell this straight away: the Revenue share affiliate program is quite complicated for beginners because it involves a complex market analysis of your target audience, which can’t be done without relevant experience. In addition, it requires special knowledge and skills in setting up advertising and attracting targeted traffic. It will take some time to obtain those skills and experience. At the same time, the business model itself can provide you with an infinite potential income stream.
Best tools to use
There are several tools you can use when working based on the revenue share model. The most effective are those that attract a lot of traffic.
You can use push notifications. Targeted advertising from financial sources works great for a trading niche. As practice shows, the target audience here is men of the 35-50 age bracket. But this does not mean that other categories of users should be excluded. You may need to conduct additional analysis.
You can also run ads on Google. It can significantly increase your audience reach, but only if you have experience in setting up contextual advertising to attract the “right” customers. The audience of this search engine is enormous. You can target customers from all over the world based on their interests.
Creating your own trading-related website will allow you to build a community of regular users. The website should offer various educational materials: articles for beginner traders, describing trading and money management strategies, analytical materials, trading ideas, etc.
You can also attract your target audience on social media by creating theme-based groups and posting useful trading tips, market reviews, and other specialized content. It is important to encourage users to open a live trading account and start trading so that you can earn commission according to the Revshare model. Typically, members of social media groups and trading communities are interested in such topics as:
- Market analysis and forecasts from experienced traders;
- Materials related to trading and investments (books, movies, etc.);
- Video of the company with a selling description;
- Biography of successful traders;
- Various polls and surveys;
- Top trading quotes and advice from trading gurus.
To generate a steady stream of traffic (and income), you can use a combination of the above-mentioned tools. Try to be creative to stand out from your competitors. Usually, brokers offer their webmasters a lot of useful marketing tools to help them attract quality traffic.
Revshare affiliate programs pros and cons
The Revshare model has both advantages and disadvantages. The benefits of revenue sharing include:
- Higher commissions than the CPA model, steady long-term income for the lifetime of an attracted client;
- No need to constantly attract new customers. You can build your customer base and earn from existing clients who trade on a regular basis. However, it should be noted that some brokers may require you to attract 3 new clients per month. Otherwise, your affiliate reward will be canceled.
- You can earn consistently, especially if you build an extensive affiliate network. The AMarkets online broker offers lucrative affiliate programs and will provide you with various marketing materials to attract clients.
As for the disadvantages of RevShare, they include:
- It takes longer to get started. To start generating income and receive affiliate payments, you will have to wait about 3-6 months, while with the CPA revenue model, you can start earning commission within a month.
- You can’t calculate the average income for the attracted trader since this value isn’t constant. You can only talk about the “average” income after you’ve built a large affiliate network.
- Dependence on a specific broker. If your broker changes the cooperation conditions for your affiliate program and you decide to move to another broker, you won’t be able to take your customer base with you. You’ll need to start over.
It is important to note that in the case of a RevShare, long-term cooperation with one broker is preferable. So when choosing a broker, you should carefully study its reputation and commission structure. Broker reliability is the key to high conversion.
It is difficult to learn all the nuances of a particular cooperation model without testing it yourself. As practice shows, any affiliate program and revenue model can generate profit with the right approach. Sure, this requires specific knowledge and experience. Patience paves the way to long-term results, and if you are willing to wait, the RevShare affiliate program can create a stream of consistent and high income.