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:
[email protected].
iGB Affiliate Issue 55 FEB/MAR 2016
63