CashBack is a part of the broker commission that the partner can share with his referrals at his discretion. It works in the following way. A broker partner brings new referral clients to the broker; referrals enter trades. The affiliate, regardless of the trades results, receives a commission from the broker and returns from 5% to 95% of this commission to the referral.
Cashback is a portion of the commission that a partner can choose to share with their referrals at their discretion.
The broker got a new client; the affiliate got a commission; the referral compensated for a part of the trades costs. The business model is similar to forex rebates cashback. Everybody is happy. Read on and learn in detail how CashBack works and what benefits it has in affiliate marketing.
The article covers the following subjects:
- What is CashBack in Forex affiliate programs?
- How does CashBack help to increase the performance of client attraction campaigns?
- How to activate CashBack in an affiliate program
- Why do you create several affiliate campaigns?
- Recommendations to partners on using Cashback in an affiliate program
- Conclusion
What is CashBack in Forex affiliate programs?
Forex CashBack is a tool of forex broker affiliate programs to attract more clients and strengthen the relations of forex brokers’ affiliates and referrals.
CashBack in Forex affiliate programs is a type of rebate system where a portion of the trading commissions or spreads that a broker charges its clients is returned to those clients. Here's how it works:
Affiliates Promote Brokers: Forex affiliates promote Forex brokers to potential traders through various marketing channels. These affiliates earn commissions based on the trading activity of the clients they refer.
CashBack Offers: To attract more clients, some affiliates offer a CashBack program. In this program, they promise to return a part of the commissions or spreads they earn from the broker to the referred traders.
Traders Benefit: Traders who sign up through these affiliates receive a portion of their trading costs back, which can be a fixed amount per trade, a percentage of the spread, or a percentage of the commission paid. This rebate can either be credited directly to the trader's trading account or paid out via other methods.
Enhanced Trading Conditions: The main advantage for traders is the reduction in their overall trading costs, which can improve their profitability over time.
Affiliate Incentives: Affiliates benefit by potentially attracting more clients due to the CashBack incentive, leading to higher overall commissions despite sharing a portion with the traders.
In summary, CashBack in Forex affiliate programs serves as a marketing tool to attract traders by offering them a financial incentive, reducing their trading costs, and enhancing their trading experience.
How does CashBack help to increase the performance of client attraction campaigns?
Forex brokers affiliate programs are a chance to make money on attracting new clients who are willing to make profits in the foreign exchange market. You can read in more detail about brokers partner programs and how to create your affiliate network from scratch in this overview. Today, I will dwell on such a tool of the affiliate program as cashback. It helps a partner strengthen the business relationship of a Forex partner and the referral to the advantage of both parties.
Benefits of CashBack
- Competitive advantage over other forex trading affiliate programs.
- You can attract more referral traders offering better terms of compensation for transaction cost.
- Psychological factor. The amount of compensation is not so significant as its very fact as a sign of respect for the new client. Cashback strengthens partnerships.
The referral also benefits from the CashBack. The cashback is paid regardless of the transaction results. If the trades are losing, the trader reduces the losses.
If the trader’s transactions yield profit, he/she increases profit through the cashback. How the Revenue Share program with cashback works is described in general here.
What you should know about the CashBack
- The minimum cashback percentage is 5%, the increment is 5%, the maximum rate is 95%.
- The cashback is paid to the referral from the affiliate earnings once a day.
- A partner can change the percentage of the commission compensation for an individual campaign (referral/group of referrals) in the personal profile at any time any number of times.
- Cashback option can be activated only in the Revenue Share type. In the affiliate program type CPS, for example, there is not a cashback option.
- The cashback amount is a percentage of the partner’s commission. Affiliate commission is a part of the trade costs of the referral when he/he enters trades.
How to activate CashBack in an affiliate program
CashBack is a service through which partners can share a part of their commission with their referrals (that is, compensate for a part of the client’s trading costs). Giving back a part of his/her affiliate earnings, the partner offers new clients better terms. The partners set the percentage of cashback as they see fit. So, the new clients compensate for a part of the spreads and commissions they pay.
How to enable Cashback in the LiteFinance Personal Profile
Step 1.
On the main page of your personal profile, click on the AFFILIATE tab on the left menu.
Step 2
In the affiliate profile, click on the Create a new campaign. Select the Revenue Share type, move the CashBack slider to the right, and specify the percentage you will compensate your referrals.
You invent the name of the campaign and description yourself.
Step 3
You copy the referral link, attract new traders, and monitor the real time statistics. A small tip. To attract more clients, you can use personal landings for your online marketing.
You can find them in the PROMO section.
Let us explore the Statistics box:
- CashBack - the name of the campaign. You can create any number of campaigns and call them as you want.
- TYPE of affiliate program – in our case, it is Revenue Share. IMPORTANT. CashBack is only in the Revenue Share type.
- CLICKS - clicks on your referral link.
- REGISTRATIONS - the number of registrations of referrals who followed your link.
- CONVERSION- the percentage of registered to those who just followed the link.
- DEPOSIT/WITHDRAWAL – statistics on the referrals’ accounts.
- TRADES – the numbers of trades entered by referrals.
- CASHBACK/rate – the amount you compensate the referrals
- SUB-COMMISSION – the commission that an affiliate received from referrals’ trading activity (you can find this information in the main menu of forex affiliate programs).
- COMMISSION FEES – money that the broker pays to the affiliate for attraction new clients (referrals)
Below is the chart that displays the number of visits/clicks, registrations, and the commission that the affiliate has received. You can monitor the moments when the referral entered trades most actively (a spike in commission fees) and compare them with the number of new registrations.
And finally, there is a list of referral joined the campaign at the bottom of the page. Use the settings of the table to group the list according to the needed parameters.
Why do you create several affiliate campaigns?
An affiliate can create as many Revenue Share campaigns in the personal profile as he/she wants. An unlimited number of referrals can join one forex cashback rebate campaign. The cashback percentage is set for each separate campaign (that is active for all referrals within one campaign).
The referral enlisted in one campaign won’t be able to join another one without deleting her/his profile. Hence, I recommend you to create several different campaigns with a different percent of cashback. You will determine which referral link share with various referrals according to your client attraction strategy.
Benefits of creating several Affiliate Programs
- Create campaigns in the Revenue Share and CPS programs. Sometime later, compare the results and decide which type is more convenient for you. Revenue Share with the affiliate compensation in percentage is more suitable for attracting active traders with constant trade turnover.
- Each campaign is a separate referral link. By making several campaigns, you can use the referral links in different promotion channels.
- Social media, trader forums.
- On your own landings or blog.
- At seminars, trader meetings.
Monitor the statistics in your affiliate profile, and you will see which promotion channels are more efficient at which moments. You will also see how the change in the cashback percentage affects the number of new clients you attract.
Recommendations to partners on using Cashback in an affiliate program
- Do not be mean. Develop a flexible system of the increase in the cash rebates that the referral increases the trade volumes. With an increase in trade volume, the trade costs will be growing, and so, the forex affiliate earnings, which he/she shares with the referral. Both sides benefit from such a cycle.
- Create and manage a system of affiliate programs. Group your referrals according to different criteria: county, trading instrument, strategy, and so on.
- Develop a reward system. For one group of referrals, 20% will be enough; for another, 80% is too little. To find a middle ground for a particular group, create dozens of campaigns with a small number of referrals. This will make it easier to stimulate individual groups of forex traders to increase their turnover by changing the percentage of cashback "on the fly" and track the level of referral requests in the context of attraction channels.
- Get sub-affiliates. As an affiliate, you receive up to 70% of your referral spread and 10% of your sub-affiliates' income (which can also attract referrals) paid by LiteFinance. Build a multi-level network of sub-partners and referrals to increase passive income.
- Use as many channels as possible to attract referrals. Offer several types of LiteFinance programs, work with different categories of potential clients - don't be afraid to experiment and be persistent!
Conclusion
Cashback is among marketing tools for people who make money through LiteFinance affiliate programs:
- Are you going to become a partner by attracting new clients? Then the Revenue Share program with cashback is your additional competitive advantage.
- Are you going to register a trading account with LiteFinance, but don't have an affiliate link? Contact our Support, and we will offer you several options. By opening an account using an affiliate link, you lose nothing and do not have any costs. On the contrary, making money on Forex, you get cashback, thereby saving your money and improving your account management performance.
If you still have questions on using cashback or working with affiliate programs, write them in the comments!
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