2022 has been a challenging year so far. The world’s financial markets have been impacted by inflation, the rising cost of living, and concerns about the supply of key commodities. The geopolitical situation is uncertain, and economies are still emerging from the COVID-19 crisis.
Despite the challenges – or perhaps even because of them – many broker affiliates continue to earn high profits in 2022. If you’re a broker affiliate, you need to know how to utilize a bear market and continue to make money. Read on for our broker affiliate tips for a bear market.
What is a Bear Market?
The term bear market is financial terminology for any market, e.g. stocks or commodities (or the markets in general), where asset prices are experiencing prolonged declines. There are no hard and fast rules about when ordinary market conditions transition to a bear market. Investor sentiment and confidence play a key role in determining a bear market, but a common benchmark is a 20% decline in asset prices.
The financial markets are inherently volatile and unstable. If asset prices rise consistently and investor sentiment is optimistic, traders talk in terms of a bull market. An excellent example of a bull market is the record stock market highs of 2021. Financial indexes like the S&P posted astonishing new highs almost daily. Bear markets and bull markets are cyclical, and skilled online traders attempt to profit from both.
How do Broker Affiliates Profit from Bear Markets?
Broker affiliates make money by referring new traders to online brokers like AvaTrade. If you’re a broker affiliate, your goal is to earn high commissions all year round. You must adapt to market conditions and drive high-value traffic. Many new broker affiliates are discouraged by bear markets. They assume that constant news reports of market plunges, falling stock prices, and even panic selling will stop new traders from signing up with online brokers.
Experienced broker affiliates are unphased by bear markets. They follow the adage that all publicity is good publicity and use negative financial news reports to their advantage. A carefully thought out marketing campaign or even some opportunistic posts on social media can create valuable new leads. The key is to identify potential trading opportunities in market downturns. It may sound counterintuitive, but traders worldwide are skilled at profiting during bear markets.
5 Broker Affiliate Tips for a Bear Market
These five broker affiliate tips will give you all the tools to potentially profit from a bear market. If you are creative and flexible, you can earn high broker affiliate commissions even during the most adverse market conditions.
- Promote online CFD trading
- Promote asset classes that are trending upwards
- Create content about short selling and Put options
- Spin negative news stories with positive interpretations
- Focus on the potential to profit from a market reversal
Promote Online CFD Trading
CFD trading can be ideal during bear markets. Online traders use CFDs (contracts for difference) to open simple and transparent trades on various assets. They can earn high profits from successful trades in just a short time. Crucially, if a trade is unsuccessful, the trader only loses the funds invested in that trade.
The second main advantage of CFD trading in a bear market is that traders can attempt to profit from assets that are falling in value. If a trader predicts that the market price of an asset like Gold or ZOOM stocks will decline, a successful PUT position can earn an immediate profit.
Key points for broker affiliates
- CFD trading is convenient, transparent and potential liabilities are strictly limited.
- CFD traders do not buy assets. They speculate on the market performance of the asset.
- It is perfectly possible to profit from assets that are falling in value via CFD trades
Learn how to promote your CFD affiliate links effectively
Promote Assets that are Trending Upwards
Some asset classes will be bullish even in the most challenging bear markets. For example, stocks, commodities and indices are plummeting – but cryptos like Bitcoin are rising in value as traders seek alternative investments. Alternatively, major institutional investors may move money into anti-inflationary hedges like Gold or look for low-risk assets like bonds.
One of the top tips for broker affiliates is to understand the full range of assets and financial instruments on offer at each online brokerage and aggressively promote bullish assets. If the upwardly trending assets are niche instruments like ETFs, prepare educational content that includes background material and example trades.
Affiliate Content on Short Selling and Put Options
Many newcomers to online trading don’t realize they can earn profits by selling assets or speculating on their downward movement. You can create high converting marketing materials based on the themes of short selling, put options, day trading and even scalping. Well-written educational content also has excellent SEO value and can boost your Google rankings – especially if it is relevant to current market conditions and news reports.
A good approach is to explore popular trading strategies during bear markets. You can incentivize your content to funnel traffic and get clicks on your individual affiliate links. An effective example is marketing materials that offer “3 Top Trading Strategies for Today’s Bull Market” or a free trading tutorial or webinar about short selling or buy bounce strategies. The goal is to present attractive free offers that drive traffic.
Spin Negative News Stories to Present Trading Opportunities
We live in a world of 24-hour news bulletins. Breaking financial news goes viral on social media and pops up on our screens in real-time via newsfeeds and alerts. Traders are often swayed by dramatic clickbait headlines as much as by hard facts and detailed analysis of events. Successful broker affiliates know how to use ostensibly negative breaking news to their advantage. If an asset suddenly falls in value, it’s almost inevitable that the movement will create alternative trading opportunities.
One of our top tips for broker affiliates is to work closely with financial content writers and graphic designers – or to master these skills yourself. If you can react to negative news reports with well-designed social media posts, blog posts, ads, or email marketing, you can inspire people to think outside the box and look for trading opportunities. Your goal should always be to get the maximum results with the minimum effort. Aim for your content to go viral!
Focus on the Potential to Profit from a Market Reversal
Bear markets and bull markets come and go. They are cyclical and can be caused or influenced by various economic and political forces and natural events. All market conditions are temporary. A bear market might last weeks or months, but it will eventually reverse, and a bull market will follow at some point in the future. Even within prolonged bear markets, there are temporary rallies and upturns. These might only last hours, but shrewd traders will profit from them.
Broker affiliates should emphasize the temporary nature of market conditions in their affiliate content. They should also hammer home the age-old principle of making money by buying assets cheaply and then selling them at a profit. Some of the world’s wealthiest investors made their fortunes by buying sound assets like stocks or commodities when their prices were temporarily depressed. Anybody who has bought property will immediately grasp the parallels. Skilled traders position themselves to profit from the next market upturn.
Read our related blog post on the six secrets for affiliate marketing success
Broker Affiliate Tips: Getting Started
If you want to make money as a broker affiliate, don’t bide your time and wait for the ideal market conditions. Start today if you have ambition and the drive to achieve financial independence. Your first step is to find a regulated online broker that can continue to attract traders during a bear market. It would be best if you promoted an online brokerage that is:
- Fully regulated in multiple jurisdictions
- Well-established, experienced and respected
- Operating with full liquidity
- Offering the widest range of financial assets
- Providing CFD trading on diverse assets
An online brokerage like AvaTrade is ideally placed to attract traders during a bear market. The broker has experienced dozens of previous bear markets and retained traders during all kinds of downturns and uncertain market conditions.
AvaPartner continues to pay high commissions all year round and rewards broker affiliate partners for bringing high-value traffic. You can select a commission plan matching your financial goals as a broker affiliate. AvaPartner will be happy to supply (unique) high-value marketing materials that will help you profit from both bear and bull markets – or anything in between
The most important thing for any broker affiliate is to get started. As soon as you drive your first traffic and earn your first commissions, you’ll be in a position to adapt your campaigns. Challenging markets can create exciting opportunities. When you identify those opportunities – you can profit from them!