Define Affiliate

What Is an Agent (Agent/Introducing Broker) in Crypto?

An agent, also known as an Introducing Broker (IB), refers to an individual or entity that partners with a platform or project to attract new users and earns commissions for driving user registration, trading, or payment activities. Agents typically receive either one-time bonuses or ongoing revenue shares, depending on the agreed terms. This model is common across crypto exchanges, wallets, and payment aggregators.

Why Should You Understand Agents?

Agents directly impact user acquisition costs, user experience, and the pace of platform growth. Understanding how agent programs work helps you assess both potential rewards and risks.

For individuals or teams, serving as an agent provides a compliant way to monetize traffic, with earnings mainly from commission rebates and task-based bonuses. For platforms, agent networks help access local markets and reduce marketing expenses. For end users, registering via an agent’s referral link often brings fee discounts or welcome packages; however, it’s crucial to verify the compliance and reliability of the agent.

For example: If a user generates $10,000 in trading fees in a year, and the platform splits 30% with the agent, the agent earns around $3,000. Alternatively, under a CPA (cost per action) model, the agent might receive a one-off bonus when the user is activated, with no further revenue share.

How Do Agent Programs Work?

The core mechanisms are “how commissions are calculated,” “how tracking works,” and “how settlement is handled.”

There are two main commission models:

• CPA (Cost Per Action): Agents earn a one-time bonus for each new user who meets specific criteria—such as completing KYC and reaching minimum trading volume. This works like a sign-up reward.
• Revenue Share (RevShare): Agents receive a percentage of the trading fees generated by their referred users over time. The share rate is typically tiered and capped.

Tracking relies on unique referral links or invitation codes. Platforms attribute user activity based on these parameters to ensure accurate crediting and prevent fraudulent traffic. Common anti-fraud measures include KYC completion, device/IP restrictions, and minimum thresholds for “qualifying trades.”

Settlements are usually daily or weekly. Platforms provide dashboards displaying new qualified users, trading fee contributions, and pending commissions; agents can export these for reconciliation. Any abnormal records trigger manual review.

The typical process involves:

1. Applying for agent status by submitting basic information and channel details. Upon approval, agents receive a unique referral link and invitation code.
2. Promoting the link through communities, content pages, or offline events—using fee discounts, educational content, or tools to boost conversions.
3. Monitoring performance dashboards regularly to analyze conversion funnels (impressions → registration → KYC → first trade), identifying drop-off points for optimization.

Where Are Agents Most Active in the Crypto Industry?

Agents are primarily active in crypto exchanges, wallets, and payment platforms—driving the closed loop of “registration → KYC → trading/usage.”

On exchanges, agents use dedicated referral links to drive spot or derivatives trading. For example, on Gate, agents receive referral links; when users register via these links, complete KYC, and trade, the platform returns a percentage of fees to the agent based on a tiered structure (detailed on Gate’s official pages). Fee share caps may differ between spot and derivatives, with derivatives typically offering higher rates.

For wallets and payment providers, agents focus more on user activation and transaction counts—such as “completing the first on-chain transfer” or “purchasing crypto with fiat above a set amount.” CPA or low-percentage revenue share models are prevalent here.

In community and educational settings, agents organize offline workshops or trading bootcamps, offering toolkits, risk management courses, and Q&A support to increase retention and engagement. Some teams also collaborate with market makers or quantitative tool providers to enhance user activity.

How Can Agents Minimize Risks?

Risks stem from compliance issues, marketing practices, fund management, and team coordination. Targeted risk management strategies can significantly reduce potential losses.

Compliance: Always disclose that investments are not principal-protected and returns are not guaranteed; avoid marketing to minors or restricted jurisdictions; retain promotional materials for audit purposes. Review the platform’s agent terms and regional restrictions to mitigate cross-border legal risks.

Marketing: Avoid exaggerating returns or implying guaranteed profits. Refrain from promoting managed trading schemes (“trading on behalf of users”). Present fee discounts, educational resources, and risk warnings equally.

Funds & Settlements: Use official platform accounts for all commission payments and reconcile accounts regularly. Implement permission controls within teams to prevent unauthorized changes to pricing or private rebates that could cause disputes.

Anti-fraud: Maintain internal allow/block lists and secondary verification processes. Suspend settlements in cases of abnormal spikes or multiple registrations from the same device/IP pending platform review. Shut down channels if necessary.

What Trends or Data About Agents Should You Watch in 2024–2025?

Current trends include more compliant operations, increased program sophistication, and a greater focus on user retention—supported by several public data points:

• Commission Ranges & Structures: By Q3 2025, leading exchanges’ public terms show agent revenue share caps typically range from 40%–60%, with derivatives programs higher than spot. CPA rates focus on emerging markets—typically $20–$150 per qualified user (refer to platform disclosures for specifics).
• Qualification & Anti-fraud: In recent months, platforms have raised standards for “qualified users,” such as requiring KYC plus a single spot trade ≥$100 or derivatives trades meeting certain thresholds. Settlements remain daily/weekly with stricter anomaly detection and manual reviews.
• Tiers & Teams: To avoid multi-layered rebate schemes, platforms limit multi-level commissions to 1–2 layers and require public disclosure of agent hierarchy and splits. Team-based operations are more common with specialized roles in content creation, community management, and data analytics.
• Regional & Compliance: The EU and other regions now require enhanced compliance checks and risk disclosures in marketing; platforms invest more in content review, local language adaptation, and legal notices. Cross-border promotions and offline activities face tougher compliance scrutiny.
• Service Upgrades: Top-performing agents receive dedicated account managers, custom banners, data APIs, co-branded campaign slots, and training to boost retention and lifetime value. Small to mid-tier agents benefit from configurable rebate templates and easy-to-use content creation tools to lower entry barriers.

Related Terms

• Smart Contract: Self-executing programs on blockchains that enable trustless transactions and agreements without intermediaries.
• Gas Fees: Fees paid to execute blockchain transactions and smart contracts—used as incentives for network validators.
• Staking: The process of locking up crypto assets to participate in network validation or earn rewards.
• DeFi: Decentralized Finance—leveraging smart contracts to offer traditional financial services like lending and trading without intermediaries.
• Virtual Machine: A blockchain-based computing environment for executing smart contract code (e.g., Ethereum Virtual Machine).

FAQ

What Is the Difference Between an Agent and a Distributor?

An agent acts as an intermediary facilitating transactions on behalf of another party but does not own the product; a distributor purchases products outright for resale, taking on inventory ownership and associated risks. Simply put: agents earn commissions; distributors earn profit margins from resale. In crypto trading, agents help clients place orders for a fee rebate while distributors buy assets directly for resale.

How Do Consignment Sales Differ from General Distribution Models?

Consignment sellers do not bear product risks—they handle sales only and earn commissions based on volume sold. Distributors must purchase inventory upfront, assuming unsold stock risk but retaining greater profit potential. Consignment is better suited for those with limited capital; distribution requires stronger financial resources and market control. Each model has its pros and cons—choose based on your capabilities.

How Do Agents Make Money?

Agents primarily profit from trading fee rebates and commission splits with their referred clients. On crypto platforms like Gate, agents earn a share of client-generated fees—the more their clients trade, the higher their commission income. Agents do not need to invest their own capital in buying/selling assets; they simply provide services to earn intermediary fees.

Am I Suited To Become an Agent?

If you have an established network, strong communication skills, and are willing to offer professional guidance to clients—you are well-suited to be an agent. The role requires minimal capital investment with relatively low risk but demands time and effort for client acquisition. It is recommended to register as an agent on platforms like Gate first to understand the commission structure before fully committing.

Are Agents Liable for Client Losses?

Legitimate agents are not responsible for their clients’ investment outcomes—clients bear their own risks. Agents’ responsibilities include providing accurate platform information and transparent fee explanations while assisting with trading operations. However, false advertising, misrepresentation of risks, or fraudulent behavior can expose agents to legal consequences—so maintaining integrity is essential.