The binary options affiliates programs are a relatively new concept to affiliate marketing but they basically follow the same principles as with any other established affiliate programs in other industries. In the forex and binary options industry, affiliate marketing has been one of the strongest marketing channels to emerge in the past decade mostly due to it’s pay-for-performance model. As with any other affiliate program, in binary options affiliate marketing, binary options affiliates promote the various online binary options platforms through making use of marketing tools such as banners and text links that are provided with the right optimization.
It is the affiliate’s goal to drive new traffic to a binary options platform that will ultimately become new customers. These new customers will be assigned to the affiliate’s registered customer base in the binary options affiliates system and the affiliate receives commission for their trading activities.
What do binary options affiliates sell?
It is imperative to know what product an affiliate is selling before going into the details.
Simply put, binary options is where a trader or an investor puts their money and makes a call accordingly on the instrument that is traded. An instrument could be currency pairs such as EUR/USD, or stocks such as Google, indices such as the FTSE100 or commodities such as Gold, known as binary options.
The trader has basically two options to choose from. Call or Put options on the assets they choose. Call is when the trader expects the instrument (stocks, forex commodities, indices) that is being being traded to end above a set price and Put is when the trader speculates that the instrument will close below the set price. To make this even more interesting, binary options always come with an expiry time. The expiry time is nothing but a pre-set time limit before the options expire. A typical expiry time ranges from 15 minutes to a few hours.
Binary options trading platform offer over 60 leading underlying assets including indices, forex, commodities and stock options. Trading offers a payout of 65-71% if an option expires in-the-money and a 15% return if the option expires out-of-the-money. Most binary options platforms are available in English, Spanish, Turkish, Arabic, German to name a few. This guarantees an international appeal and a vast audience for binary options affiliates to target. All binary options platform can be accessed 100% via the web, making it available all day, every day – no download required.
So the obvious question that comes to mind is what happens if a trader loses? Some binary options platforms offer a return even for losing trades. Often refered to as 15% Out-of-money. This means that if you trade a particular instrument and the trade turned out against you, you are ‘out of money’ in such circumstances, the trader gets back 15% of their investment. The opposite to this is ‘in-the-money’ which is when the traded instrument wins. This is what makes binary options very lucrative as it offers high payouts ranging between 60% – 85%.
Binary options affiliate plans
Most binary options affiliate programs offer a cost per sale/acquisition(CPA) or revenue share. It is quite easy to achieve the targets especially with CPA as the minimum deposit requirement starts at $100. The average CPA in the binary options industry ranges between $120 – $300. This is infact one of the highest CPA’s being paid out in any other affiliate industry.
Apart from CPA and revenue share, binary options affiliate programs also offer CPL models as well which range between $5 – $12 depending on the target regions.
Which commission model is best for you?
Generally speaking, binary options affiliates need to ask themselves when choosing a commission plan what is more likely:
- You will bring many medium to low value customers.
- You will bring fewer high value customers.
If you predict that your customers will invest high sums in trading, then it’s wise to go with the revenue share plan. If you believe that you can drive a large quantity of customers that spend lower sums on trading, then CPA might be the better option.
Means to promote binary options platforms
The binary options affiliate programs offer pretty much the same tools as with any other industry in affiliate marketing. Binary options affiliates get access to the regular banners, newsletters for email marketing and text links. At the outset these above tools should suffice to get started with promoting the binary options platforms, however there is scope for improvement.
It would definitely help for binary options affiliate programs to offer some interactive or live widgets. Considering the fact that binary options is nothing but a run-off from the financial investing services, the markets are always volatile and dynamic. If binary options affiliate programs could offer such tools, they could see a whole lot of better conversions.
How do existing binary options affiliate promote?
Before starting to promote any affiliate programs, webmasters should do thorough research into the industry. Almost every existing binary options affiliates makes use of reviews in order to promote binary options platforms. Content is king in most affiliate industry but it takes higher precedence in the binary options affiliates industry. Existing binary options affiliates make use of educative content in order to teach their visitors about trading the binary options. Some affiliates also provide cash-back and rebates programs in order to get more traffic.
In conclusion, the binary options affiliates industry enjoys a very high competition. In order to be successful, binary options affiliates need to pay due attention to their SEO strategies in order to get an edge over the others.
Visit our Affiliate Program Comparison and read our unbiased forex and binary options affiliate program reviews to get a better idea on which binary options affiliate program to promote.
