iGB Affiliate 55 Feb/Mar - Page 69

INSIGHT “In order to choose a revenue share deal that would work out well for the affiliate, the trader value would need to be in excess of $1,500 and would depend on an expert retention team constantly working with traders in order to keep their accounts actively trading.” a string of promotional emails which may end up in a spam box. Conversion rates for geographical locations will be something that won’t be instantly known by the majority of affiliate managers. If an affiliate manager immediately answers the question with statistics, in all likelihood the information is made up. If howe ver, this prompts a dialogue where the affiliate manager asks where the traffic is from, whether the traffic is incentivized, which funnels are used etc., this would suggest that the affiliate manager knows what they’re talking about. Still doesn’t mean that the figures are real. But they could be within a rough ball park figure. It would seem that more regulated binary operators are looking to do revenue share deals. Especially for specific geographic locations such as GCC. And why not? The deals are less risky and it leaves more time to pay affiliates. But affiliates beware! Understand the calculation. Profit/loss minus withdrawals does NOT account solely for deposits. Losses come from deposits and bonuses, so make sure to understand which figures go into losses and also if any trader profit is carried over indefinitely. With carry over, all it takes is one trader winning a large amount to negate all profit for quite some time. When revenue share is on the table, it’s always prudent to ask about average trader value. To understand how to benefit from the best deal – do the math. Current CPA’s range from $250 to $550 depending on geographic location and traffic sources. Additionally, CPA’s only kick in once the trader begins trading. Many affiliate programs place a minimum volume requirement to activate a CPA payment. Revenue share deals range from 20% to 45%, but most brokers cap at 35%. If an offer of 40% to 45% is made I would suggest proceeding with caution. CPL deals range from $10 to $30 per lead but would only be done by new operators. Additionally, if using sales funnels for lead generation, there would be a need to involve API integration. Not every platform has this functionality. The brands using spot option technology should all have this readily available. In order to choose a revenue share deal that would work out well for the affiliate, the trader value would need to be in excess of $1,500 and would depend on an expert retention team constantly working with traders in order to keep their accounts actively trading. Therefore, try to read between the lines in order to establish how good - or not so good - the retention efforts of the brand really are. The key players offering binary options platforms to brands consist of SpotOption, TechFinancials, Tradologic, Playtech and newcomer OSystems. There are now over 400 online binary option brands utilizing their trading platform, CRM and miscellaneous other components. Finding a brand to send traffic to has never been easier. Finding a reputable brand which pays on time and offers competitive deals is not as easy. It’s hard to predict what the future holds in store for trading binary options online, but one thing for sure is the growth of mobile apps for all trading. This gives affiliates an opportunity to drive traffic through mobile sales funnels which is currently considerably cheaper than web based traffic. But it all comes back to the question of conversion. My advice to affiliates who are starting out and looking in the direction of lead generation from sales funnels would be to ensure ownership of the leads. Create funnel pages and capture the leads prior to sending them to a brand. Try to avoid spending money on media to send traffic directly to the landing pages offered by the brand. Dive into the mindset of an online trader and try to think from a different angle. Understand what would entice a person to open a trading account. What would assist people trading online? Is there a way of offering something that would persuade people to deposit without a call from a conversion agent? None of this is rocket science but it does require hard work and perseverance to enjoy the rewards of trading affiliation. MICHAEL KATZ is a marketing consultant offering services to operators and affiliates. He specializes in strategy, sales funnel creation and campaign planning for the online gaming and financial industry. Michael has been part of the online gaming industry since 2002 and has specialized in financial trading since 2012. Email: Michael@sociaratimedia.com. iGB Affiliate Issue 55 FEB/MAR 2016 63