How to generate a passive source of income on brokerage partner programs?

How to generate a passive source of income on brokerage partner programs?

Perhaps, the goal of every person, not just a trader, is to form a source of passive income. At the same time, it is absolutely not important with which particular asset this yield will be formed and by what method. The main fact is profit in the pocket, which appears as a result of passive influence on the process.

If we talk specifically for trading, we, as exchange speculators, also have the opportunity to create a passive source of profitability for ourselves. And not even from the market, creating an algorithmic trading strategy, but directly with additional earnings based on what we do every day. I would include in this list of opportunities for creation a passive source of profitability through trading, the following options:

  1. Provision of automatic trading signals using external specialized sources;
  2. Money management with the help of PAMM and MAM services;
  3. Providing ready-made investment decisions;
  4. Partner programs with brokerage companies.

As you can see, there are a lot of options and everyone can choose the most optimal one for himself directly. I have already described some of these opportunities in my previous articles. Today, we will consider the last item on the list, namely affiliate programs or as they are called – Introducing Broker.

Affiliate programs allow the trader to interact with the broker to get the opportunity of attracting new customers to the accounts of the latter. Thus, everyone benefits from such agreements: the first one has the opportunity to receive payment for each new client; the second one receives this client and expands his base, as well as raises the profit percentage due to the additional commissions.

To implement such a relationship, a special multilevel ib platform is created that allows the partner to track exactly the clients he attracted. This provides an opportunity to review the channels of attraction, as well as to analyze the entire partner network. Moreover, these platforms are a personal office for a partner, in which he will accordingly see his payments, as well as advertising elements in the form of banners and special partner links, according to which clients will be assigned to a particular partner bearing his unique ID. In turn, the ib platform for the broker is a means of analyzing and direct attracting partners so that you can analyze each partner and his results. This is done in order to cooperate only with cost-effective partners and avoid accidental payments to those partners who no longer attract new clients to the broker.

As you can see, the functional and interests of the broker vary, in spite of the fact that everyone achieves his goals. That’s why, I propose you to consider what “issues” of both the trader and the broker are solved by the affiliate program.

Key features of the partner program for the trader/partner:

  1. If you are a trader and trade in a reliable broker’s account, you can conclude partner agreements with him, according to which you will post information on external sources about your results and directly recommend the broker. Thus, you continue to conduct trading, and with the help of multilevel ib platform, you will accumulate additional funds, if someone will click on your link. In fact, nothing changes in your activity, you just have to add one more line in your post on the forum or blog, where you will recommend your broker (or several brokers based on the number of “partners”).
  2. If you provide information services or training in the financial market, by signing an affiliate program with a broker, you can recommend his accounts as acceptable for testing the trading system that you trained. This will allow you not only to earn on training, but also from an affiliate program while not spending additional monetary and time resources;
  3. It allows you to generate a passive source of profitability (I am not going to describe it here, as we discussed it at the beginning of this article).

Key features of the affiliate program for the broker:

  1. The affiliate program allows the broker to expand the client base, which leads to increased commissions. Thus, the broker has the possibility of direct earnings on commissions. Moreover, if he develops the client, then this is an increase in the amounts that also flow in additional commissions;
  2. Low cost of attracting both new lead and client. The thing is that the payment to the partner, as a rule, occurs after the account is replenished by the client. If the marketing companies have to pay for clicks and transitions to the broker’s website of disinterested persons, then in the case of partner agreements, this option is excluded. This in many times saves the budget for advertising and optimizes this department;
  3. Also, the sales department is under optimization, because its role will be performed directly by the partner, who will “entice” customers to use the trading conditions of a particular broker.

Affiliate programs are of great importance in the modern digital world. They allow you to develop business by yourself and get additional profit. And even in our sphere, there are opportunities to implement such programs. However, in our market, there are very few different partner programs for one simple reason – not all the brokerage companies launch them. In view of the fact that “dark companies” are thriving today, they do not need to bother with the implementation of such functionality, which is certainly a negative moment for the market as a whole. Of course, today an ordinary trader has plenty to choose from, but still the competitive environment is rather weak because all the partnership agreements operate according to identical schemes. A reliable and quality brokerage business is required to have an Introducing Broker platform to scale and build a reliable company in the long term.



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