April 12, 2022

CFD Affiliates Benefit from Supply Fears

How CFD Affiliates Can Benefit From Russian Supply Fears

Commodity prices were already unusually high when the Russian invasion of Ukraine shocked the world’s financial markets. Wheat and Crude Oil jumped around 25% immediately after the invasion, and all oil-based/dependent products are expected to rise too. Sanctions against Russia and its increasing economic isolation will have an additional effect on commodity prices, particularly across the energy markets. 

The ongoing fighting in Ukraine is causing massive disruption to the country’s agricultural production. The 2022 harvest is expected to produce a fraction of its normal volume. In addition to the sudden rise in energies and precious metals, agricultural commodities like Corn and Wheat may go sky high this year. Rises in the cost of fertilizer (produced with natural gas) may drive up other agricultural commodities. Demand for war materials is also pushing up base metals. Raw materials experienced their biggest single week surge since the 1974 oil crisis.

The disruption to the commodities market is expected to cause extreme volatility, and inflationary pressures may also affect pricing. It’s always risky to predict trends, but higher food prices seem certain. Supply side problems may also increase prices. The one thing we can say with any degree of confidence is that the international commodity markets will be volatile in 2022. This is potentially great news for broker affiliate partners who are going to promote commodities.

Why are High Commodity Prices good for CFD Affiliates?

High commodity prices generate news headlines and increase trader interest in the commodity markets. Assets like Oil, Gas, Corn, Wheat, Gold and even metals like aluminium will become major talking points. We can expect to see commodities receiving publicity – and public awareness – that was previously only enjoyed by high profile assets like Bitcoin and Zoom. 

The volatility of the commodity markets and any sustained price rises (particularly combined with inflation) will affect everybody’s quality of life on some level. If we see an overall increase in the cost of living and a drop in disposable incomes, it’s possible that people will look for alternative incomes and convenient ways to make extra money. We could see a rise in the number of new traders signing up with online brokers. 

How do I Promote Commodities as a Broker Affiliate?

Some online brokers offer major commodities as CFDs. Traders can open fast and convenient CFD trades on assets like Oil, Gas, Gold and Corn and hopes to earn high profits. If you’re signed up with a professional affiliate partner program like AvaPartner, you already have everything you need to promote commodities. It’s possible to earn high commissions from commodity traders, your partner program will be glad to receive all the quality traffic you can send them. 

If you’re already signed up with AvaPartner, you can skip the next section. If you’re new to online affiliate work, the following paragraphs are an excellent basic guide on how to earn high profits as a broker affiliate

  1. Sign up with a partner program that promotes a regulated broker. AvaTrade is the ideal brokerage for ambitious affiliates who want to make a six figure income
  2. Open a free demo account at the brokerage and practice the basics of online trading. Pay particular attention to commodities. 
  3. Start reading the financial press daily and subscribe to online alerts and newsletters. Many of your campaigns will exploit breaking news, so stay up to date
  4. Get active on social media and start conversations about commodities. Even people with no immediate interest in online trading are affected by volatile commodity prices. 

What Commodities Should I Promote as an Affiliate?

2022 is going to be a turbulent year in the commodity markets. We definitely recommend focusing on Oil, Gas, Gold, Corn and Wheat. It’s important to understand how rises in commodity prices will affect the lives of potential traders – your site traffic and social media traffic. 

The average person might not be particularly interested in whether Brent Crude will hit $150 a barrel before the summer, or if wheat futures rise to $12 a bushel. They are far more likely to engage with clever marketing campaigns if the price of a loaf of bread rises 25%, or coffee and chocolate become unaffordable. Your goal when you promote commodities as an online affiliate is to understand peoples’ concerns and make your marketing concepts relevant and compelling. 

You also need to tailor your content to communicate five basic concepts to potential traders. If you can push these five core messages, you should be able to convert a high volume of quality traffic within your first month as an online broker affiliate. 

  1. Online CFD commodity trading is simple and convenient. Traders do not buy commodities, they invest in the market performance of the commodities.
  2. There is at least a potential to make fast, high profits on CFD commodity trades. Any losses are strictly limited to the sum invested in a particular trade. 
  3. When traders sign up with a regulated online commodity broker like AvaTrade, they have full legal protection and fair trading at real time market rates. 
  4. Mobile trading gives online commodity traders unlimited access to the global markets. They can log in and open trades within seconds of breaking news affecting commodity prices. 
  5. Commodity traders at AvaTrade are not limited to commodities. They can trade CFD stocks and indices, as well as a wide range of bonds, ETFs options, forex and cryptocurrencies. 

What Online Incentives Should I Offer as a CFD Affiliate?

When you prepare your content and marketing plans, consider offering incentives like trading tutorials and free trading strategies. Good quality educational materials build trust with traders and have an excellent conversion value. They are particularly useful for first time online traders who don’t understand the markets and are uncertain about their own ability to make money.

More advanced incentives are a useful conversion tool for more experienced traders and rejoiners (people who traded in the past and want to have another go). These online educational resources will need to be more detailed and more sophisticated. Your partner programme will offer advice about how to create advanced eBooks and trading tutorials. They will also provide you with free, high converting marketing materials. 

As you develop your broker affiliate business, it will pay to reinvest your profits in a YouTube channel, and paid advertising campaigns. If you want to create high quality financial education tools, newsletters and videos, it’s worth hiring a financial content writer (with SEO knowledge) and other marketing professionals. You’ll also need to review and update your existing materials to benefit from changes in the markets and new opportunities. 

If you’re working with a professional, experienced partner programme like AvaPartner, you’ll get all the help and advice you need. A winning marketing strategy will create a return on investment that will be measured by the high affiliate commissions you earn promoting commodities in 2022!

FAQs

How do I Earn High Affiliate Commissions from Commodities?

If you deliver high quality, high volume traffic, your partner programme will pay high commissions. As you gain experience and understand how to target potential traders with your marketing campaigns, you’ll be able to aim for major traders. As soon as you have high volume traders, you’ll need to move away from simple CPA commission deals and explore the potential of high earning Hybrid CPA and RevShare deals. Your goal should be to earn a continual passive income from your best traders and receive a monthly commission calculated on their trading activity.

Will the Commodity Markets Deliver Affiliate Profits in 2022?

Nobody has a crystal ball, and you should be cautious of anybody who makes firm predictions about future financial markets. It is reasonably safe to say that the markets will be unusually volatile in 2022. The bottom line is that volatile markets create profits for skilled traders. It’s impossible to say how the markets will move, only that they will move. If there’s widespread financial uncertainty and economic upheavals, we may see a rush of new online traders who want to make money and manage their own financial futures. If you can connect with them and refer them to a broker, you’ll earn commissions.

Why do I need to Work with a Regulated Broker like AvaTrade?

The internet is full of online brokers, but regulated brokers like AvaTrade are the only ones who deliver high long term profits. Unregulated brokers tempt new and naive affiliate partners with unrealistically high CPA commission deals. They invariably change the terms of the deal after a few months, claiming that the agreed commission structure was an introductory offer. Most unregulated brokers fail to keep quality traders and frequently fold after a short time. AvaTrade is regulated in six different jurisdictions worldwide and has been running successfully for over 15 years. AvaPartner has paid out over $250 million in affiliate commissions!


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