November 8, 2021

All You Need to Know About the RevShare Model

Short outline of this blog post

When you’re aiming for high profits as a forex affiliate partner, your choice of commission plan is one of the first major decisions you’ll face. AvaPartner currently offers its affiliate partners a selection of four basic commission programs:

  1. CPA (cost per acquisition)
  2. Dynamic CPA
  3. RevShare
  4. Master Affiliate

This blog post will focus on the RevShare commission plan. We’ll explain how it works, what kind of forex affiliate partners typically opt for RevShare, and list the actual pros and cons of this potentially lucrative payment model. 

What is RevShare for Forex Affiliates?

RevShare or revenue share is a commission plan that offers forex affiliate partners an ongoing share of a client’s trading volume. For example, suppose you refer a client to AvaTrade. In that case, his trading behaviour will be automatically tracked, and every single trade is recorded. Your commission will be calculated from his trading volume and paid to you monthly. 

Commissions are typically calculated according to an agreed percentage. RevShare deals can be straightforward or can follow more complex models. They can also be negotiated around:

  • The actual revenue (gross or net) that your referral generates for your partner-broker.
  • The percentage of the spread value – for your client’s trades. The spread is the difference between an asset’s bid and ask prices. It is one of the ways online forex brokers make money from traders.
  • A fixed payment per lot traded by your referral. In forex trading, a ‘lot’ is a unit measuring a transaction amount. Traders usually trade lots of 10,000 units of a base currency or mini lots of 1,000 units. 

Whatever the specific RevShare deal you negotiate, it will follow the basic principle of giving you an ongoing commission based on your referral’s trading activity. 

All you need to know about the RevShare Model: Advantages

The main advantage of the RevShare commission plan is that if you deliver high value, high volume traders to your forex partner broker, you can earn a lot of money over a sustained period. Suppose one of your referrals has a trading volume that reaches hundreds and thousands of dollars – or more – daily. In that case, your RevShare commission is potentially huge. If you have 10 or 20 active high volume referrals at any given time, you will be well on your way to being a top tier earner. 

  • The most successful forex affiliate partners can aim for six-figure monthly incomes.
  • AvaPartner has paid out more than $250,000,000 in commissions to date. 

As soon as you have a reasonably stable passive income from a core of high volume referrals, you’ll be free to focus on building your affiliate business. You can channel a proportion of your commissions into paid advertising, client resources and other highly effective marketing strategies. Success breeds greater success in most business ventures – and even more so in forex affiliate marketing. 

All you need to know about the RevShare Model: Checklist

The potential advantages of a RevShare deal are clear: A good deal can secure a high, long term passive income. However, you need to be clear about a few things before you sign a RevShare deal. False assumptions can cost you money:

  • Check the actual duration of a ‘lifetime deal’. You need to read the small print and ensure that a lifetime deal doesn’t expire or change its terms after six months or 12 months. 
  • Be sure that you are clear about how your RevShare commissions are calculated, e.g. trading volume spreads, lots or net/gross broker profit. 
  • Do the maths and try to calculate how much you can potentially earn from your referrals. Some traffic might initially look suitable for RevShare but is better suited to a CPA plan.
  • Can you afford – or do you have the patience – to wait for a RevShare commission to mature into a highly profitable income stream? Some high-value forex traders will ease themselves into the markets and only gradually increase their trading volume. In some cases, it might take a month to see the results you want. 

Forex broker partner checklist

Remember: When your goal is to make a six-figure income as a forex affiliate partner, you must be sure to send traffic to a top-quality, leading broker. 

  • Is the broker regulated by official regulatory bodies like ASIC, FSI or the Central Bank of Ireland?
  • Does the broker have a global presence and a solid international client base?
  • Can the broker guarantee high liquidity and stability under all market conditions?
  • Does the brokerage have a good online reputation?
  • Are there leading trading platforms like MT4 and MT5 for me to promote?

How do I attract high volume forex traffic?

Suppose you want to make money from a RevShare deal. In that case, you will need to attract high volume traders and persuade them to begin actively trading with your forex partner broker. There are plenty of high-value forex traders out there, but competition for them is intense. The good news is that if you’ve signed up with the right partner program, you’re far more likely to make regular conversions. 

Most people willing to make substantial deposits with forex brokers (we’re talking six or even 7 figure numbers) will be attracted by top quality content and high-quality marketing materials. You need to understand your forex partner broker’s brand and market it effectively. You will also need to understand your target traffic, how to reach them on the web, and how to get them to click on your links. 

Offer digital resources for forex traders

The kind of high-value forex traders who will earn high commissions for you through a RevShare deal often respond well to digital resources. They like to see professional websites and social media profiles that offer trading tutorials and platform guides. There are detailed (and up to date) broker reviews, ebooks, information on trading strategies, technical and fundamental analysis resources, and trading videos. The bottom line is that if you’re going to endorse a broker, you need to present yourself as an authoritative voice. 

Building this kind of online presence may sound like a significant project; in fact, it’s a lot easier than most forex affiliates realize. As soon as you start earning your first commissions, you’ll have an investment budget. You can easily find freelancers to create your online digital resources and other trader incentives if you shop around. Check out what other sites are doing, but don’t just copy them. Adapt good ideas to your forex marketing niche and improve on them. 

  • How do I make money from forex RevShare deals?

    Because RevShare is a medium to long term deal, you need a stable brokerage that retains traders on a long term basis. It would help if you found a fully regulated brokerage like AvaTrade. A Brokerage with high liquidity, top quality trading technology, e.g. MT4 and MT5, a broad index of the latest assets and competitive fixed spreads. Very few experienced high volume traders will settle for anything less. AvaTrade is regulated by nine different official bodies and welcomes traders from around the world. These regulatory credentials, and the wide catchment area, really increases your chances of driving high-quality traffic.

     
  • Is RevShare better than CPA for forex affiliates?

    RevShare is undoubtedly better than CPA for many forex affiliates. Whether it is ideal for you will depend on a few factors: 1 – the quality of your traffic. 2 – whether you can afford to wait for profits to build up. 3 – How confident are you with your forex partner broker. Consider a CPA or a Hybrid CPA deal if you want to see an immediate return on your investment or doubt whether your traffic has either resources or staying power. If you have good traffic and are taking the long view, RevShare may generate much higher commissions. AvaPartner is highly experienced and will tell you all you need to know about the RevShare model.

     
  • Can I become an introducing broker to profit with RevShare?

    Yes – you can undoubtedly become an introducing broker (IB) to profit from RevShare deals. It can be a great way to maximize your commissions. Introducing brokers usually continue to work closely with their clients once they are trading forex online. If you have a good relationship with your clients as their introducing broker, there is a good chance that they will trade on a long term basis. AvaPartner welcomes IBs and is always willing to negotiate tailored RevShare deals.