iGB Affiliate 51 JunJul - Page 54

FINANCIAL TRADING FOCUS OPENING A BROKERAGE: ACHIEVABLE GOAL OR FAR-FETCHED DREAM? For affiliates frustrated at the low conversion rates on traffic they are sending to FX or binary options brokers, running the operation on the other side of the affiliate programme is not as big a stretch as they may think, writes George Sardos of allFX-Consult. IF YOU ARE an affiliate and currently working with an FX or binary options broker, have you ever been frustrated at low conversion rates on your traffic? Have you ever asked yourself whether or not you could run the operation on the other side of the affiliate programme you are signed up to? Opening a brokerage is not as big a stretch as you may think, although few are aware of what comes with it. According to the Bank of International Settlements, trading in foreign exchange markets in April of 2013 averaged $5.3 trillion in daily turnover, up from $4 trillion in April of 2010. With estimates of nearly $8 trillion by 2019, there are no signs of slowing down. And still, recent years have left the forex industry with more challenges than solutions, more questions than answers and a lot of money and time wasted in advertising and selling the non-saleable. Not only is the competition constantly growing, the regulators are placing more and more obstacles in the path of brokerages, thus making client acquisition harder, but the client base has also transformed into network and individual trading abusers, resulting in low income generation. How can a brokerage survive today’s climate of ever-increasing costs over income? How can business development be guaranteed in this unstable environment and how can wasted time/money be avoided in order to allow the establishment of a solid foundation and infrastructure to support future growth? Brokerages start out with set plans and proactive methodologies, but over time, allow themselves to become reactive, a systemic approach towards operations that will eventually kill the running system and require refreshing and starting over, if not a complete shutdown. So it is imperative to build strong foundations that will work as a base for tomorrow’s activities. Do you have the data? It is a fact that the more data you have, the better your chances to acquire sufficient 50 iGB Affiliate Issue 51 JUNE/JULY 2015 market share, expand operations and grow. With targets hovering above every decision you make and every day costing more than the previous one, income generation is imperative, if not vital, to your rise or fall. Given the importance of data, this is an area where affiliates and participants in the gaming industry would have a clean head start should they ever decide to branch out and utilize their resources to start a brokerage. Spend Spending money to acquire data does by no means guarantee income. It is however, among the first steps required to get you where you need to be. Questions such as “should I spend?”, or “how much and when should I start spending?”, will puzzle you in the beginning, while over time, you will grapple with questions such as “is my spending enough?” and “should I spend more or stop spending completely?”. Marketing spend has always played a big role in brand awareness although with today’s social media and free educational material, this has become a little easier for start-ups, because as prospects strive for quality in their decision making, they will need information. knowledge to promote themselves and their organizations will result in a complete alienation of your lead database. The prospect will immediately see through the weak sales rep, the conversation will be over, and it’s then very hard for any future positive interaction to take place. The above is but a short introduction to the backend of running a brokerage. There are various solutions when it comes to deciding how to start, and these can be discussed with any broker directly, or a licensing agency that can set you on the right path. It is imperative that you pay close attention to the overall operations and correctly structure your strategies towards income generation from the very early stages. While the level of competition and the challenges have increase [