Is there an Affiliate Agreement?

March 6, 2010

Building a business relationship to a company also means that you are making an agreement with the said firm. Agreement is always present in any negotiations,this includes any affiliation programs.Typically, the form of agreement is posted online on your Web site and the potential affiliate partner needs to enroll in the program and agree to the terms of the Affiliate Agreement.

Agreements are not so interesting to read. But its your responsibility to read and understand it to avoid any conflicts. You must know ell the conditions and necessary informations about the program you want to be in. In that way, you will know how to play your role and you will not be shocked if things are getting into something weird.
So, what are the conditions of an agreement? An agreement is usually composed of the following:

  • Links. The agreement should spell out what types of links will be provided to the affiliate – a product link, a search box link, or some general text link.
  • Tracking. The agreement should spell out how the referred customers will be tracked and reported.
  • Referral Fees. The precise referral fees should be spelled out. How much is paid for what customer purchases?
  • Payment Terms. (Quarterly payments are typical).
  • Customers. Most agreements provide that the customer is “owned” by the e-commerce site where the product or service is bought. This means that all information about the customer is the sole property of the e-commerce site.
  • License. Most agreements will provide for a non-exclusive revocable right to use certain graphic images and text of the e-commerce site, that the affiliate may not modify them in any way and that it has to follow trademark guidelines provided.
  • Terms of Agreement. How long will the agreement last? Most affiliate agreements provide that they can be terminated at any time by either party.

This agreement protects both the right of the affiliate and of the merchant. These must be agreed by both party.

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