CPA vs Forex Revenue-Share -Which is the Best Choice for Forex Affiliates?
When a Forex affiliate signs up with a new affiliate program, he can usually choose between three options: CPA, Hybrid, or Revenue-Share.
Defining CPA, Revenue-Share, and Hybrid Affiliate Programs
- CPA (Cost Per Acquisition)
CPA is a standard commission program that pays a certain dollar amount for every referred trader. The Forex CPA programs start as low as $100 and can be up to $1,000.
The requirements for valid CPAs include:
-Only new customers from accepted countries
-The new client must deposit some funds within a certain period (usually 1 year)
-The new client must trade a minimum of 1.0 lot, some brokers demand up to 5.0 lots
Revenue-share is a commission-based model where affiliates earn a certain amount based on their clients' trading volumes (on a lot basis, where one full traded lot equals 100,000 USD). The revenue-share percentage can be as low as 15%, and up to 50%. The interesting feature is that usually, these programs offer a lifetime revenue, meaning that as long as a client trades you get your commissions (never expires).
The requirements for valid registrations include:
-Only new customers from accepted countries
-Some Forex brokers will not accept to reward trades last less than two (2) minutes. A tiny detail that can make the difference if an affiliate refers a Forex scalper
A hybrid affiliate program includes both CPA and revenue share. That means the program starts as CPA and pays a standard cost per acquisition ($50 to $100), and then transforms into a revenue-share program (paying 5-10% of all commissions earned). If an affiliate partner cannot decide which program is the best choice, a hybrid plan is the best option.
The requirements for valid registrations include:
-Only new customers from accepted countries
-The new client must deposit some funds within a certain period (usually 1 year)
-The new client must trade a minimum of 1.0 standard lot, some brokers demand up to 5.0 lots
