Trading that involves marketing products and earning a commission on sales, with the specifics on functioning detailed below
In the dynamic world of cryptocurrency trading, affiliate programs are becoming an increasingly popular way for exchanges to promote their services and reward those who help spread the word. Here's a breakdown of the common commission types in affiliate trading for cryptocurrency exchanges and traditional brokers.
Cryptocurrency Exchanges
The primary commission types in the crypto exchange affiliate model include:
Revenue Share (Percentage of Trading Fees)
This is the most common structure in crypto trading affiliates. Affiliates earn a percentage of the trading fees generated by the users they refer. For example, Binance offers 20% commission on spot trading fees and up to 40% based on volume and traffic, while Bybit gives 30% on trading fees.
Tiered Commission Structures
Some exchanges use tiered models where commission rates increase based on the referred users’ location, trading volume, or other factors. MEXC, for instance, provides 40% or 50% commission tiers depending on user location.
Subaffiliate Commission
Some programs pay commissions on the earnings of subaffiliates (affiliate’s referrals). OKX and Binance, for instance, share up to 10% commissions from subaffiliates.
Cost Per Sale (CPS)
This is less common in crypto exchanges but used in related products like hardware wallets (e.g., Trezor gives 12%-15% CPS on sales).
Traditional Brokers
For traditional brokers, the common affiliate commission types include:
Revenue Sharing
Affiliates get a percentage of the spread or commission fees generated by the trader’s transactions.
Cost Per Action (CPA)
Affiliates receive a fixed amount for each new customer who completes a defined action (such as opening a funded account).
Pay-Per-Click (PPC) or Cost Per Click (CPC)
Affiliates get paid based on the number of clicks they deliver to the broker’s website.
Hybrid Models
Some affiliate programs combine revenue share and CPA to balance upfront and residual income.
In summary, the affiliate models for both cryptocurrency exchanges and traditional brokers are designed to reward affiliates based on trading volume and user acquisition. Crypto exchanges often offer high revenue share percentages due to typically higher trading volumes and ongoing fees, while traditional brokers use a wider mix, including CPA and PPC, reflecting more varied customer acquisition strategies and longer decision cycles.
In the realm of cryptocurrency lifestyle, investing in affiliate programs for exchanges can yield financial benefits through commission structures such as revenue share (a percentage of trading fees), tiered commission structures (increasing rates based on factors like user location), subaffiliate commission (earnings from referral's earnings), and cost per sale (a fixed amount for each sale). Meanwhile, traditional brokers offer revenue sharing, cost per action, pay-per-click, or cost per click, and sometimes employ hybrid models that combine revenue share and cost per action, reflecting diverse strategies for user acquisition.
