How to monetize an Expert Advisor?August 10, 2020 2022-12-26 14:06
How to monetize an Expert Advisor?
So your Expert Advisors is finally ready and now you wonder how to make money with it. This article will help you to get ideas and tips how to market your EA.
How to market my Expert Advisor?
The topics we will discuss are:
- How to market my EA
- Do I need a website?
- How to manage support
- How much should I charge?
- Where to build a track record?
How to market my Expert Advisor?
A lot of EA developers are either traders or programmers, but for sure they are no marketeers. So what steps to take in order to sell your EA to the rest of the world? For example, a good strategy does not mean it sells well. So which marketing strategy is considered to be working in 2019?
Call me conservative if you want, but it all starts with being fair. So whatever you will publish about your EA, make sure the information is accurate and transparent. A live trading record will certainly contribute to better sales or make sure to offer a demo trial in case you do not have a live track record.
Basically the most important question to ask yourself is how much time you are willing to spend on it. Also if you allow your clients to contact you directly through email, chat, skype etc. Many EA developers do have day jobs and surely your boss will not appreciate you spending time on EA customer support.
Most definitely we recommend to study on the various affiliation marketing website out there. Here you can build a re-sellers network throughout the world. For a 30% fee though, but imagine how much time and money this will save you. Have a look at Avantage or Click to Sell networks.
So lets see what marketing tools can be useful for your sales plan.
Do I need a website?
Normally a website is extremely helpful if you want to make large sales. Not only does it build trust, but you can explain in detail about your trading strategy. A website means you have a registered domain name with a real email address. However a website also means cost and work.
How much does a website cost?
A decent looking website you can create yourself or you can outsource it on Freelancer.com for example. The price for a few pages will easily hit $750 and bear in mind that you want good content that helps your site to rank nicely in Google Search Engine. In case you prefer to create your own website you will have to spend some money on a nice looking template but also on some premium plug-ins. All and all you face about $100 plus hosting cost. But mostly you will lose time.
How much work is it to maintain a website?
Once your website is up and running it is kind of easy to maintain it. Every now and then you will have to update your theme and plugins and you can add or adjust some content.
The large advantage of having a website is that you will generate traffic from Google Engine. However this means you will have to work constantly to add good and user friendly content.
How to manage support?
Each sale means more clients and clients need support. Make sure that besides to send the EA file to also add a very detailed description and tutorial. This prevents many emails from new robot traders with questions like “how to install the EA”. Create a Frequently asked question section on your website!
After clients installed the EA its kind of straight forward. Most questions will arise when big news events are coming up or which settings to use. For these questions you can choose for a regular support email address. Another option could be to create a special Facebook group, or Telegram – Twitter group where you answer any questions.
If you consider to make this your day job, a chat or skype function is desirable. Most Forex traders like it when the support is live and thus fast.
How much should I charge per account activation?
Thinking of how to monetize an expert advisor this is of course an important question. Most EAs go for prices between $100 and $500. Some developers simply ask over $2K for their algo. I think that pricing is a matter of common sense. For example:
Most Forex EA traders start with any amount between $500 and $5000. So charging $1K for an account activation means that the client needs to make a 20% profit to only break even. I can speak from a long experience by saying that its best to start in the $200 – $300 region. You can slightly raise your price but only if for example your positive reviews are increasing or if your live track record is looking nicer over time. Also remember that you need to reserve some percentage for affiliates.
Where to start of with a live trading record?
A live track record is important. Firstly it shows how your EA is behaving in a live trading account. Furthermore it is a free analysing tool for your potential clients with an unbiased outcome. Myfxbook and FXblue are perfect tools for this and appreciated by most Forex traders. All you have to do is to register with one of both of these websites and create your strategy. By connecting your MT4 terminal your account will be updated every hour and allows traders to check your trading account.
Many EA developers made a fortune with their strategy and still do. There are over a million active Forex traders globally so to sell 10000 activations is very well doable. To start off I recommend to first offer your EA in as many shops as you can find. This will make less profit, but saves you loads of time on marketing. Always make sure that your support is fast and reliable. If you have a day job you can operate with an auto responder that informs clients that you will follow up within 24 hours.