PAMM partnership programs

Here, we'll take a look at how referral partners are remunerated:

A manager opens a PAMM account with Alpari. The manager is earning a steady profit, but he is having trouble attracting new investment.

An Alpari client offers to help the manager find new investors. The manager accepts his offer and makes the client his referral partner, agreeing to award him 10% of the remuneration earned from each client he refers to the account.

The referral partner refers two investors: Investor 1 and Investor 2. Having accepted the manager's terms in his proposal, the investors will pay the manager 20% of their share of the profits as remuneration.

• The manager has 20,000 USD of his own money invested in the account.
• Investor 1 invests 50,000 USD.
• Investor 2 invests 30,000 USD.
• The overall balance of the PAMM account is 100,000 USD.

Here's how this looks:

Over the course of the one-month trading interval, the manager achieves a 50% return. The overall balance of the PAMM account is now 150,000 USD.

Here's how the remuneration is paid out:

• Investor 1 earns 50% on his initial investment of 50,000 USD, or 25,000 USD. He will pay 20% of this amount (5,000 USD) in remuneration. The referral partner takes 10%, or 500 USD. The remaining 4,500 USD goes to the manager.
• Having invested 30,000 USD in the PAMM account, Investor 2 earns 15,000 USD in proftits. 3,000 USD (20%) of this amount will be paid in remuneration. The referral partner gets 300 USD (10%). The manager is left with 2,700 USD.
• So, the referral partner earns a total of 800 USD (500 + 300) from his referred clients. The manager ends up with 7,200 USD.

How the profits earned on the account are distributed:

Now we'll look at how auxiliary partners are remunerated:

A manager opens a PAMM account with Alpari and recruits an auxiliary partner to help them out with risk analysis. The auxiliary partner will earn 10% of the manager's remuneration from investors.

Two investors join the manager's PAMM account, accepting the terms in the manager's proposal. They will pay the manager 20% of their share of the profits on the account.

• The manager has 20,000 USD of their own money invested in the account.
• Investor 1 invests 50,000 USD.
• Investor 2 invests 30,000 USD.
• The overall balance of the PAMM account is now 100,000 USD.

Here's how this looks:

The manager earns a 50% return on his trading for the one-month trading interval. The balance of the PAMM account rises from 100,000 USD to 150,000 USD.

So here's what happens:

• Investor 1 earns 50% on their initial investment of 50,000 USD, or 25,000 USD. The investor will pay 20% of this amount (5,000 USD) in remuneration to the manager.
• Having invested 30,000 USD in the PAMM account, Investor 2 earns 15,000 USD in profit. 3,000 USD (20%) of this amount will go to the manager.
• The manager makes 8,000 USD in remuneration for the month, 800 USD of which (10% of the 8,000 USD) will go to the Auxiliary Partner, leaving the manager with 7,200 USD.

How the profits earned on the account are distributed:

Now, we'll see what happens when both auxiliary partners and referral partners are involved:

Here's how our scenario plays out:

• A manager opens a PAMM account with Alpari.
• The manager first recruits a partner to help bring in clients: the referral partner.
• Next they bring in a partner to help market the PAMM account: Auxiliary Partner 1. Auxiliary Partner 1 will also help bring in investors, working in a role as an referral partner in addition to her role as a marketing specialist. Her remuneration will come in two different forms.
• The manager also finds a third partner who specialises in risk analysis: Auxiliary Partner 2.

The manager agrees with the partners on their remuneration:

• For the referral partner: 10%
• For Auxiliary Partner 1: 10% as a referral partner / 20% as an auxiliary partner
• For Auxiliary Partner 2: 10%

In their proposal, the manager stipulates that each of the investors in the account will pay 20% from their share of the profits as remuneration.

The referral partner brings in two investors to the PAMM account: Investor 1 (who invests 50,000 USD) and Investor 2 (30,000 USD). Auxiliary Partner 1 refers Investor 3 (10,000 USD) to the account. Investor 4 joins the account on their own, investing 20,000 USD. The PAMM manager has 5,000 USD of his own money invested in the account.

In this example, the overall balance of the PAMM account starts out at 115,000 USD.

Here's how this looks:

At the end of the one-month trading interval, the PAMM account has achieved a return of 50%. The balance has risen from 115,000 USD to 172,500 USD.

Here's how much each of the investors has earned in profits:

• Investor 1, who initially invested 50,000 USD in the account, will earn 25,000 USD in profits (50% of 50,000 USD).
• Investor 2 earns 15,000 USD on their initial investment of 30,000 USD.
• Investor 3 earns 5,000 USD on their initial investment of 10,000 USD.
• Investor 4 earns 10,000 USD on their initial investment of 20,000 USD.

How the profits earned on the account are distributed:

Remuneration is paid out in the following order:

1. To referral partners
2. To auxiliary partners
3. To managers

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  Remuneration from Investor 1

  Having earned a profit of 25,000 USD for the month, Investor 1 will pay a total of 5,000 USD (20% of 25,000 USD) in remuneration. The partner who referred Investor 1 is paid first. The referral partner gets 10% of the 5,000 USD, or 500 USD. Next, the Auxiliary Partners are paid from the remaining 4,500 USD in remuneration. Auxiliary Partner 1 takes 900 USD (20%). Auxiliary Partner 2 takes 450 USD (10%). The remaining amount (3,150 USD) goes to the manager.

  Manager's remuneration

  5,000 USD

  Manager's
  remuneration from
  Investor

  Investor 1

  Step 1

  Remuneration to
  referral partners

  5,000 USD

  10%
  from the manager's remuneration
  500 USD

  Referral
  partner

  Step 2

  Remuneration to auxiliary
  partners

  4,500 USD
  (5,000 USD - 500 USD)

  10%
  from the manager's remuneration
  450 USD

  20%
  from the manager's remuneration
  900 USD

  Auxiliary partner
  (risk manager)

  Auxiliary partner
  Marketing specialist
  +Referral partner

  Stage 3

  Manager's remuneration

  3,150 USD
  (4,500 USD - 450 USD - 900 USD)

  3,150 USD

  PAMM manager

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  Remuneration from Investor 2

  Investor 2 pays out a total of 3,000 USD in remuneration, 20% of the 15,000 USD they earned for the month. From the 3,000 USD, 300 USD (10%) will go to the referral partner. From the remaining 2,700 USD, Auxiliary Partner 1 is paid 540 USD (20%) and Auxiliary Partner 2 is paid 270 USD. The manager gets the remaining 1,890 USD.

  Manager's remuneration

  3,000 USD

  Manager's
  remuneration from
  Investor

  Investor 2

  Step 1

  Remuneration to
  referral partners

  3,000 USD

  10%
  from the manager's remuneration
  300 USD

  Referral
  partner

  Step 2

  Remuneration to auxiliary
  partners

  2,700 USD
  (3,000 USD - 300 USD)

  10%
  from the manager's remuneration
  270 USD

  20%
  from the manager's remuneration
  540 USD

  Auxiliary partner
  (risk manager)

  Auxiliary partner
  Marketing specialist
  +Referral partner

  Stage 3

  Manager's remuneration

  1,890 USD
  (2,700 USD - 270 USD - 540 USD)

  1,890 USD

  PAMM manager

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  Remuneration from Investor 3

  Investor 3 will pay a total of 1,000 USD in remuneration. The partner who referred them will be paid first - in this case, the referral partner. Out of the 1,000 USD, 100 USD (10%) is paid out to the referral partner, leaving a total of 900 USD. Auxiliary Partner 1 will also be paid for their auxiliary role in the account. As such, Auxiliary Partner 1 is paid 180 USD (20% of the 900 USD) for this role. Auxiliary Partner 2 gets 90 USD (10%). The manager takes the remaining 630 USD.

  Manager's remuneration

  1,000 USD

  Manager's
  remuneration from
  Investor

  Investor 3

  Step 1

  Remuneration to
  referral partners

  1,000 USD

  10%
  from the manager's remuneration
  100 USD

  Auxiliary partner
  Marketing specialist
  +Referral partner

  Step 2

  Remuneration to auxiliary
  partners

  900 USD
  (1,000 USD - 100 USD)

  20%
  from the manager's remuneration
  180 USD

  10%
  from the manager's remuneration
  90 USD

  Auxiliary partner
  Marketing specialist
  +Referral partner

  Auxiliary partner
  (risk manager)

  Stage 3

  Manager's remuneration

  630 USD
  (900 USD - 180 USD - 90 USD)

  630 USD

  PAMM manager

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  Remuneration from Investor 4

  Since Investor 4 joined the PAMM account on their own, there is no referral partner that needs to be paid. From the 2,000 USD they pay in remuneration, Auxiliary Partner 1 takes 400 USD (20%) and Auxiliary Partner 2 takes 200 USD. The manager gets the remaining 1,400 USD.

  Manager's remuneration

  2,000 USD

  Manager's
  remuneration from
  Investor

  Investor 4

  Step 1

  Remuneration to
  referral partners

  2,000 USD

  Another investor
  joins the PAMM
  account on their own.

  Step 2

  Remuneration to auxiliary
  partners

  2,000 USD
  

  10%
  from the manager's remuneration
  200 USD

  20%
  from the manager's remuneration
  400 USD

  Auxiliary partner
  (risk manager)

  Auxiliary partner
  Marketing specialist
  +Referral partner

  Stage 3

  Manager's remuneration

  1,400 USD
  (2,000 USD - 280 USD - 400 USD)

  1,400 USD

  PAMM manager