The affiliate agreement is one of the most important aspects of affiliate marketing. Essentially, it’s the legally binding contract between you, the affiliate, and the entity you’re working with. This could be an advertising agency, affiliate program, or a direct merchant.
Whatever the case may be, the affiliate agreement is what governs your working relationship. It should cover a number of topics. Agreements must cover the roles and responsibilities of both parties as well as any rules that you need to abide by. Most importantly, the affiliate agreement will cover what you are being paid for and how much the commission rate is.
Advertisers typically pay based on sales, though some also provide pay for increased traffic and customer clicks. The exact terms of your working relationship with the advertiser should be laid out in this agreement.
Other things you might find in the affiliate agreement include the length of the terms, the possibility for termination of the agreement, required licenses, use of business intellectual property, confidentiality terms, and much more.
Advertisers and affiliate programs require you to review and sometimes sign the agreement prior to starting the relationship. It’s important to review the terms of the agreement closely to ensure that you’re following it to the T. In the event that the advertiser or merchant doesn’t perform their responsibilities, such as not paying you the agreed amount, the affiliate agreement can also be used in a court of law.