Transparent and Profitable Commission Structure: Key to Motivating IBs

To beat the competition and stay ahead in the Forex trading market, brokers and IBs associations should be well-maintained. IBs are very important in fetching new potential leads and enhancing broker operations. To collaborate with and retain a good IB, brokers have to come up with attractive remittance and commission plans that are clear to understand and beneficial for IB growth. Transparent and profitable structures would attract potential IBs to associate with the broker. If the IB is aware of his exact earnings and extra effort rewards, there are chances for the collaboration to last longer and build trust.

Understanding the requirement of a crystal clear structure of commission:

No broker would like to implement feelings of disappointment, depression, or distrust within their IBs. To make sure the IB understands the commission structure easily, the broker has to keep everything transparent and easy to understand. If the IB knows his commissions and other rewards computations, it helps in building trust. Unnecessary hidden charges or complex regulations would create confusion. A well-informed IB can customize his strategies to bring more business and earn more. Obviously, if transparency is maintained, the chances of misunderstandings and dissatisfaction would be reduced.

What one should look for in an IB commission plan to earnmaximum profit:

The commission structures should be a win-win situation for both the brokers and IBs so that everyone gets the motivation to bring business. These are certain criteria for brokers to include in their remittance structures:

Multi-tier plan for incentives:

A tiered structure that includes commissions for IBs and sub-IBs would help them to grow their business network and associate more sub-IBs to the system. The broker has to decide some percentage of commissions for every tier like up to 30% commission for directly referred clients, up to 20% for the references by sub-IBs, and so on. Such structures would allow IB to upgrade its income.

Structures based on the trade volumes:

Apart from the multi-tier system, the broker can reward the IBs based on the volumes executed by the traders. Fixing some amount per lot up to a certain limit of lots would help IBs understand the structure. For example, up to 100 lots executed, the broker can offer a reward of $5 per lot, for 101-500 lots $7 per lot, and so on. This would encourage IBs to motivate their traders to keep active.

Keeping track of commission computations in real-time:

A robust Forex CRM would offer real-time tracking of commission earned so that IBs do not need to keep waiting for some time to know about their earnings. IBs should have instant access to know active traders and their trades, commission split based on trader, instrument, or volume, withdrawals of commissions, etc.

Quick and Swift payment processing:

The broker should maintain automated payouts for IBs to be interested in the collaboration. There have to be multiple options for claiming the payment such as bank, crypto, e-wallets, etc. It is advisable not to delay any commission payment to keep the IBs and Sub-IBs active.

Extra rewards based on performance:

Extra income in the form of bonuses or incentives would always motivate the IB to perform better. In addition to the basic commission structure, incentives such as bonuses for achieving certain milestones, organizing competitions among IBs for generating volumes per month, and increasing commissions for best-performing IBs would keep the IB's morale up.

To enhance operations and profitability, the broker has to develop a well-structured IB commission model. IBs should collaborate with the broker for longer periods and bring success for both of them. If the structure is transparent and upgradable, brokers are likely to maintain a healthy and robust relationship with the IBs and outgrow their performances.

Tell us if you want to know more about Cloud Forex CRM’s IB Module and Commission Profiles. Visit us at www.cloudforexcrm.com or WhatsApp for more information.