Types of affiliate programs and income-generating algorithm

2025.12.04 2024.03.13 Types of affiliate programs and income-generating algorithm

Oleg Tkachenkohttps://www.litefinance.org/blog/authors/oleg-tkachenko/

Affiliate programs can bring additional incomes, or they can become the main business. With a correctly arranged network of attracting referrals, one can earn more than $1000 per month (sometimes much more). From this article, you will learn: what types of affiliate programs can be; how to register. You will also learn the ways to create a partnership network from scratch with minimum investments and tools, as well as main rules and the algorithm of making profits from affiliate programs.

An affiliate program is a way to make profits by attracting new clients to trading, who will bring profits to a broker (profits from the spread), which the broker is willing to share with a partner. A partnership can be an additional source of passive income for a trader, or it can be an independent type of business. Read on about what kinds of affiliate programs can be, and how one can make up own affiliate network from scratch.

How one can become a partner: types of programs and registration procedure

Any broker is interested in attracting new clients and increasing own trade volume. So, each of them is willing to encourage attracting new clients, providing all necessary information. After registration in the program a partner receives:

• referral link. This hyperlink can be integrated into the website (if there is one), or a potential trader can enter it into the browser.
• banners. Complete advertising products to place in the site;
• business cards. Advertising leaflets. However, the partners themselves are responsible for printing the material, the broker provides only its electronic version.
• wallpaper and icons to create the image of certain website pages;
• complete landings (one-page websites) with the logo, designed in broker’s corporate colours.

The remuneration can be fixed (for example, $25 or $50 for each client registered) or equity (percentage from broker’s profits). Partners’ task is to persuade a potential client not only to enter the broker’s site but also to start trading on a real account. That is why, a partner should be able to persuade, and the most important, understand trading and unique features and advantages of the company represented.

The number of affiliate programs is not limited. Therefore, the most appropriate way is to create your own website and place there the links and adverts of a few brokers simultaneously. That will be described further.

How one becomes a broker’s partner (technology)

I will use the example of LiteFinance affiliate programs to show how to register and select the type of partnership. Other brokers have a similar principle with slight differences.

The first step is to register your personal profile on the broker website. Everything is clear: enter your e-mail, write true information about yourself, confirm registration, following the link, sent to your e-mail.

• Important! You need to pass verification. It is often forgotten, although, verification will prevent any problems with money withdrawals in the future.

The next step is to find in your client profile section “Affiliate”, then - “Programs.” Get acquainted with affiliate agreement and follow the tips that will help to create your own affiliate campaign. After you do this, the referral link will appear in your profile.

Types of affiliate programs:

• Under the CPS program, you get $50 for each client (referral), as well as 10% of the income of your sub-partner. Partners receive money not only for the traders, they attracted, but also for the traders, attracted by their sub-partners. Remuneration is both fixed and a percentage from sub-partners’ income;
• Revenue Share program can get you up to $15 per trade conducted by referral as well as 10% of your sub-partner’s profits. The peculiarity of the program is that the partner sets the amount of the commission he is ready to share with his referral or partner. It works like this: a partner attracts new referrals, referrals open trades, the partner receives a commission from the broker regardless of the results of the trades and returns 5% to 95% of this commission to the referral. This is beneficial both for a partner (strengthening partnerships, a possibility of attracting more people) and referral (partial coverage of trade costs);
• Regional Representative - a program, providing an opportunity to establish and manage your own local office. It is a serious, independent business.

It is also possible to be a common partner without establishing a multilevel system. After partners get from the broker advertising materials they can start attracting new clients.

There is a support tool on the website, partner’s calculator that helps to calculate the partner’s commission. Besides, the following options are available in the Partner’s profile:

• several options of complete landings;
• three kinds of informers;
• up to 10 kinds of business cards with a different design;
• Over 120 icons.

To analyze personal performance, there are charts and tables in the profile, which display by the date the number of following the link, conversion rate, the fact of registration after jumping the ling and the commission amount.

All LiteFinance partners are able to take part in the contest with the total prize pool up to $2500 after they apply for participation. The objective is to attract as many traders as possible during a week or a month with the largest trading volume.

How to make profits from the affiliate program

So, you have successfully registered with a broker, received advertising materials and a referral link, what’s next? How to make up your own traders database, and what should you start with at all? First, you are to decide, how much time you are willing to spend on the partnership network developing, the amount of money to invest in it at the initial stage, how long you are willing to wait for the first results. That is, you need to do detailed planning. Your plan is to include the following:

• the course of action and the expected desirable results by a certain time. For example, to attract 5 traders in a week and get an income of $10 from their trading performance;
• the tools, you will use to attract traders.

The tools to make profits from affiliate programs

One can form a partnership network, with the use of any channels: the Internet (e-mail distribution, social networking sites, YouTube videos, blogging, communication on thematic traders’ forums), topical seminars, meetings, conferences, etc. Even since, there is a hundred fold wider audience on the Internet, one can attract a large trader at a topical meeting. Live communication has always been an efficient means to attract clients.

Partner’s tools:

• website builder. It is a service that allows creating a simple free website, based on common CMS (for example, WordPress);
• a page on social networking sites (Facebook, Twitter, and so on), a group, YouTube video channel;
• automated mail sender (for example, Unisender, Mailchimp, Aweber). Et is used to send to the partners the information about broker’s offers, any changes, greetings, and so on. You can buy addresses database and send ads, but the newsletter can be identified as spam;
• platform for webinars (for example, ClickMeeting). It is a service allowing to hold webinars with traders from all over the world (provided you know foreign languages);
• clip maker. It is a service that allows you to create an attractive visual presentation, based on templates;
• service for client search automation and traffic generation on social networks.

Ways to create own partnership network

1. Attracting by means of your own website. You can build a website with the use of a free web builder, but you can also order it to be designed. A well-designed website with the opportunity to add videos, topical sections, and so on, is far easier to promote. The website can be created in the form of a blog or in the form of an informational portal. The course of action:

• identify the target audience. It can include professional traders that may be poached, or, on the contrary, people without certain experience. The content and the way to present information will depend on the target audience.
• think about the website content. It can include the description of trading strategies, analysis of news, something interesting about Forex, etc.;
• fill the site. The content should be targeted to all categories of clients, according to their perception: to audiles and visuals. There are people, who prefer watching videos or listening to the records on the way. There are those, who like to read, picking up the most important. There should be textual, audio, and video content on the site, meeting the needs of everybody. Before the site is launched, there should be content, prepared for a few months in advance. Texts can be ordered on the copywriter resource, but it is better to hire a professional. Or write to them by yourself;
• make up the website image. The most important things on the site should be eye-catching to attract visitors’ attention. The site shouldn’t be overloaded with information, the site menu should be user-friendly (site usability). Analyze your competitors’ websites to create appropriate design and layout;
• add feedback. Comments, recommendations, questionnaires – any kind of feedback to the site visitors.

The initial objective of the site is generating traffic and increasing the conversion. AIDA model should be mentioned as well. It is Attention; Interest; Desire and Action. A site should be attractive, catchy, first and foremost. And then, in the second place, it is to be interesting. The visitors are to want to visit the site and contact the administrator as often as possible. Advertising banners and the referral link should by no means be intrusive or obsessive. The more convincing and interesting is the site, the better are the chances to attract new people to trading.

Some tips about the site:

• add languages to your site as you are making progress. However, it involves spending on a translator;
• contact SEO specialists. It also involves some costs, but the site will be sooner included in the tops of search engines. It is better to create the content after the semantic kernel has been arranged;
• analyze the competitors’ websites.

Site promotion. After the site has been created, it needs promoting at least to the first page of Google. Then, it will be noticed by more people, that is somebody is more likely to get interested in trading. Here, some investment may be needed. Ways to promote a website:

• SEO;
• contextual (search engine) advertising.

SEO is website optimization, including site promotion and links purchase. In general, an independent promotion is as follows:

• An initial search queries core is formed (semantic kernel). Partially, it can be arranged with the use of Keyword Planner where the keywords are selected. Keywords are users’ search queries, according to which, your site is to be among the leaders. That is why low-frequency keywords (less than 1000 queries per month) are selected the most often;
• the content (articles) should contain keywords related to the semantic kernel. For example: “Forex Cryptocurrencies” (high-frequency combination – 2566 queries), “Forex buy cryptocurrency” (114), “Forex cryptocurrency chart” (58); they all are the keywords for an article about cryptocurrency trading in Forex. The keywords are to indicate the article’s topic. If users search for cryptocurrency trading in Forex but see something irrelevant, they will immediately close the link, and the search engine will lower the site rating. A correct text in terms of SEO is 50% of success;
• internal optimization is performed. It includes the creation of meta-tags, like, Title, Description, etc., as well as the internal re-linking. All the content, including pictures, shall be original, unique (checked for plagiarism by special software);
• The content should be added to the site regularly. The performance results should be monitored via Google Analytics, a free service, used to watch how many people engage with your site and to analyze user behaviour. The first visible results will be reached no sooner than in 6 months.
• contextual advertising. It is advertising, whose content depends on user interests. For example, if a user looks for the opportunity to make money in Forex, he/she is softly offered to visit your site. The performance of contextual advertising is analyzed with the use of Google Adwords.

2. Work on forums and social networking sites. Forums and review sites are the first ones potential clients visit to look for a broker. Here, it is important to form a positive image of a broker in such a way that it wouldn't be taken as advertising. So, there are important the date of account registration and the number of messages. And, of course, professionalism. The objective is to point out the advantages of the broker and be able to respond to possible negative in the right way, that is to convince a person with reasonable arguments. Attracting traders at topical exhibitions and seminars is based on the same principle. The advantage of social networking sites is that it is possible to create several groups, targeted to a different target audience. The groups can be promoted independently, being filled with interesting content and include the advertising material of the broker. It is also possible to copy the content from your site or copy the link to the site into the groups. It is an efficient means of attracting with minimum investment.

• Reference: A set of measures to promote a service or a business on social networking sites is called SMM (Social Media Marketing). It includes identifying the promotion objectives, selection of the communication approach (individual for each target audience, depends on the views of people, their features, values, etc.), the analysis of conversion and feedback. The work with the target audience is based on empathy map, a tool allowing one to understand what is the most important and interesting for each type of people (psychological and behavioural factors). Empathy map (consumer map) ranks the values for each category of the target audience, allowing one to create the content that will be the most interesting for readers.

3. Promotion of your own name. It is about presenting yourself as a professional. Write articles, place them on leading analytical resources, gain the reputation of an expert, whose opinion is important, and advertise the broker softly.

4. Establishing your own office. It is the most costly, but the most efficient, an option of an independent business. A number of managers, supervised by a professional trader, hold marketing campaigns on social networking sites, forums, etc.

And finally, there are some tips to help you create your own affiliate network:

• Try to communicate face to face with traders as much as possible. Nothing persuades better than a live contact;
• keep in touch with those, who you have attracted, no matter, how much time it will take. If the affiliate network has already expanded, communicate not only with the key clients, but also with the most consistent ones (those, who perform although not large, but regular, trading volumes) ;
• 1-2 large traders are better than 10 of those, who trade intermittently, with small volumes

Conclusion. An affiliate program is a way to generate income, which depends on how sociable you are, and how much time you are willing to spend on development. The suggested ways of making money are only a few ideas to start from scratch. The most appropriate of them is building a website, though it requires startup costs for promotion. Another way is creating a social networking group, and working with the target audience. All the ways can be combined or applied partially. The success depends on solely your planning, will, the ability to convince and to experiment with different marketing ideas. We wish you every success!

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