4 Factors Hampering FX Affiliates in Russia
Affiliate marketing in the Russian FX market stands aside and is not an integral part of the marketing community and ecosystem. Only a year ago I noticed a trend that could change the situation — more and more transparent information on rates and conditions is available, more affiliate managers speak at marketing events and discuss common issues with fellow aff. managers. The total number of “affiliate marketing” queries has grown 1,5 times in 2016 comparing to 2015*.
*According to Yandex Wordstat
Isolation of the affiliate marketing in the FX industry has its origins. Let’s talk about some of them.
- Broker’s High Risks
Any FX broker sooner or later faces fraudulent activity where the broker or a trader can be the target. There are dozens of different fraud types ranging from simple auto referral traders to highly technological entities who use broker’s technological drawbacks. An affiliate program maximizes the risks and makes the whole system more vulnerable to potential fraudsters resulting in reduced transparency of FX affiliate program.
- High-security standards
FX brokers take the utmost care to protect its data and clients’ personal info. In our digital age brokers have tons of data including trading history, deposits, profit, and losses. It’s not a trivial task to take a proper care of this data. So FX brokers create their own secure ecosystems, including all the software for affiliates programs in-house.
As a result affiliate managers in FX don’t use the same tools as their fellow marketers in other industries (e-commerce, dating, etc.). So they have less common topics/problems to discuss.
- Negative image of FX market
Despite all legislative and regulation efforts, FX industry is largely perceived as a non-safe and risky environment. HYIPs and fraudsters that come and go every day make the situation worse. It also hinders the creation of unique and transparent standards for affiliates and FX companies.
- Emphasis on IBs
From the moment when Russian FX brokers created the first partnership programs, the focus was on Introducing Brokers (IBs). This type of offer was closely tied to those working in the industry and has little connection with internet marketing. As a result — even more isolation of FX affiliate programs.
Nevertheless, there was some positive news in Russian FX affiliate marketing lately.
We witness more intense cooperation between FX affiliate managers, who exchange of best practices and share hight standards of affiliate support. More and more conditions and rates are more transparent now and we can see a real breakthrough in terms of analytics and reporting for affiliates. Alpari’s affiliates have always had detailed reporting but in 2016 we’ve offered even more useful tools.
Lots of FX brokers interact with major CPA-networks which leads to more open and clear reward models and gives affiliate managers an opportunity to interact with their colleagues from other industries.
I am pretty sure that affiliate marking in Russia is having a great surge now and the upcoming months will bring us lots of exciting news and opportunities. Alpari’s affiliates were growing fast in the recent years and now can join the company in its international expansion.
There will be a number of great affiliate conference in Moscow this fall where my fellow affiliate managers and I will speak and discuss current trends in affiliate marketing. I would love to see at CPAConf on October the 18th. See you soon!
Alexander Koshkin, Alpari head of affiliates
This article was originally published on FinanceMagnates.