Guide to RevShare Affiliate Commission Plan
Choosing the right commission plan is crucial for maximizing profits as an affiliate. In this blog post, we will focus on the RevShare compensation scheme. We will explain how it works, discuss the type of Forex affiliate partners who typically opt for RevShare, and outline the advantages and disadvantages of this highly lucrative compensation plan.
At BlackBull Markets, we offer our affiliate partners four different commission programs to choose from:
- CPA (Cost Per Acquisition)
- Dynamic CPA
- Master Affiliate
What is the RevShare Commission Plan?
The RevShare commission plan, also known as revenue sharing, provides Forex affiliate marketers with a consistent percentage of their referred clients’ transaction volume. For example, if you refer a client to BlackBull Markets, their trading activities will be tracked and documented for each trade they make. Your commission will be calculated based on the agreed-upon percentage, and you will receive it on a monthly basis.
The commission can be calculated based on various factors, such as:
- The exact revenue generated by your referral for the partner broker.
- The portion of the spread amount that applies to the trades made by your referral. The spread is the difference between the Ask and Bid prices of an asset, and brokers often make profits through this method.
- A set amount for each lot traded by your referral. A “lot” is a unit used to measure transaction amounts in forex trading, typically consisting of 10,000 units or micro lots of 1,000 units.
Whichever RevShare agreement you reach, your commission will be based on the trading volumes of your referral.
Advantages of the RevShare Model
The main advantage of the RevShare plan is that you can earn a substantial amount of money over an extended period of time if you refer high-value, high-volume traders to your partner broker. If your referrals regularly trade in large amounts, the RevShare commission can be quite high. Furthermore, if you consistently have 10-20 high-volume referrals, you are on your way to becoming a top earner.
Once you have a solid base of high-volume referrals providing you with a steady passive income, you can focus on growing your affiliate marketing business. You can reinvest some of your earnings in client resources, paid ads, and other effective marketing techniques. Success begets more success in most business endeavours, especially in forex affiliate programs.
Key Considerations for the RevShare Model
Before signing a RevShare agreement, there are some important factors to consider to ensure that you make the most out of this model:
- Check the duration of the lifetime agreement. Read all the terms and conditions to make sure that your lifetime agreement does not expire after a short period of time, such as 6-12 months.
- Understand the factors that will be used to determine your RevShare payments, such as trading volume spreads, net/gross brokerage profit, or lots.
- Do the math to estimate how much you could potentially earn from referrals. For example, while some traffic may seem suitable for RevShare, it may be better suited for a CPA program.
- Consider whether you can wait for the RevShare commission to become a highly lucrative income stream. It may take some time for high-value forex traders to gradually increase their trading volume after entering the markets, and you may not see the desired results immediately.
Checklist for Forex Broker Partners
If you aspire to become a Forex affiliate partner with a six-figure revenue, always direct your visitors to a reputable broker that meets the following criteria:
- Is the broker subject to official regulation by organizations such as the New Zealand FMA or the FSA?
- Does the brokerage have a significant foreign clientele and international reach?
- Can the brokerage ensure strong liquidity and stability under all market conditions?
- Does the brokerage have a sizable foreign clientele and an international reach?
Provide online resources for currency traders
Digital materials are frequently well-received by high-value fx traders who will generate significant fees for you via a RevShare contract. They appreciate seeing expert social networking and website accounts that provide platform and trade tutorials. In addition, there are in-depth broker reviews, eBooks, trading techniques guides, analytical and fundamental research resources, and trading videos. The main point is to project yourself as an important voice if you are to recommend a broker. Although creating this type of web profile may seem daunting, it’s far simpler than most affiliates realize.
You will have an investment plan as immediately as you begin receiving your first earnings. Then, if you look around, you may locate independent contractors to develop your online digital materials and other trading incentives. Examine other websites’ content, but do more than duplicate it. Good concepts should be improved upon and tailored to your fx marketing niche.