More Than Just Paperwork: Crafting an Affiliate Agreement for Your Program
Wondering if you truly need an affiliate agreement? We get it.
Why add another thing to your plate when there are so many other things to set up (like your affiliate application processes, tracking, payouts, commission rates, etc)?
Spending time or money creating one might feel like a hassle and we know, it’s kind of a pain to spend the time creating one. Plus, it’s an extra investment if you hire an attorney to draft them or (our preference!) use an attorney-drafted affiliate terms & conditions template.
But trust us, the benefits outweigh the effort.
There are lots of benefits you can enjoy, as well as sticky situations you can avoid, if you have an agreement in place for your affiliate program. And, at the end of the day, an affiliate agreement is not just a formality; it’s a strategic necessity.
Keep reading to learn more about why, and the trust, clarity, and protection an affiliate agreement brings to your affiliate partnerships.
Please note that this blog post is for informational purposes only and does not constitute legal advice. If you require assistance with your affiliate agreement or have specific legal concerns, it is advisable to consult with a qualified attorney to address your individual needs and circumstances.
Why an affiliate agreement is a MUST for your affiliate program
“Okay, but… do I reeeaaally need an affiliate agreement?” is something we’re asked all too often.
So, let’s start by breaking down the three main benefits of having terms clearly laid out for your affiliate program:
Establish trust and clarity between you & your affiliates
When you’re inviting people into your affiliate program, it’s best to have clear terms from the get-go.
Building a strong foundation of trust is crucial for long-term, successful affiliate partnerships and a well-communicated affiliate agreement not only cultivates trust but also eliminates any confusion for the affiliate on the details of your program, such as commission amounts or payout times.
Affiliate terms offer legal protection for both parties
Perhaps the most important benefit of having an affiliate agreement is legal protection.
The affiliate terms and conditions act as a shield, offering protection to both your business and affiliates. By addressing intellectual property rights, establishing clear terms, and incorporating confidentiality clauses, the agreement ensures a secure and legally sound partnership.
Prevention of misunderstandings & disputes
Clear terms can prevent some awkward situations and potential legal disputes. Your agreement can essentially act as a reference point to avoid confusion when it comes to things like confidentiality, who owns what content, and liability limitations.
A well-written affiliate agreement will also have dispute resolution mechanisms in place juuust in case something does get past the point of repair and you need to take legal action (or legal action has been taken against your business).
Key elements to your affiliate program contract
Okay, okay—so you’re sold on the idea of having an agreement in place for your affiliate program. Now you just need to know exactly what to include!
Here are 7 things you should include in your affiliate agreement with some relevant questions that should be answered clearly:
Commission structure. How much are you offering to pay your affiliates? Is it a percentage commission or a fixed amount? Is it a recurring commission or one-time only? If you have multiple products with different commission terms, make sure you list them all out here.
Payment terms. How and when are you affiliate commissions to your affiliates? Is there a refund period you need to wait to pass before paying out commissions? Are your commissions paid out every 30 days/60 days/90 days? Do you have a payout threshold in place?
Cookie policy and attribution model. How long will affiliate links cookie users for? What about if a customer clicks multiple affiliate links—who receives credit for the sale?
Data protection & privacy. What policies do you have in place to protect the privacy of your affiliates? What affiliate tracking software are you using? What is their privacy policy? What about the privacy of your customers? Will affiliates be able to see the names or email addresses of your customers?
Terms of termination. What situations would result in an affiliate being removed from your program? What happens when that situation arises?
Intellectual property rights. Who owns what content? If you provide your affiliates with any promotional materials, do you own that or do your affiliates after they share? What about any branded materials, logos, or graphics you might share with them?
Confidentiality clauses. How will you safeguard sensitive business information? Do you have a time limit on how long information shared with affiliates should be kept confidential before they can share with others?
Compliance with local laws and regulations. What territory was the agreement created in? What national regulations are in place for affiliate marketing? Do affiliates need to agree to disclose their links?
Just a reminder: this blog post is for informational purposes only and does not constitute legal advice. If you require assistance with your affiliate agreement or have specific legal concerns, it is advisable to consult with a qualified attorney to address your individual needs and circumstances.
Ways for your affiliates to agree to your terms
We’re not exactly going to ask you to send chunky letters over to your affiliates with your affiliate contract or asking them to print out the last page, sign, scan, and send back to you.
The ways to get acknowledgement and agreement to your affiliate program terms are actually a lot easier nowadays! There are various ways for this to go down, depending on how you run your program and what feels best to you.
E-signatures. You can send your affiliate agreement to each new affiliate who applies to your program and ask them to digitally sign via a software like HelloSign. This is more manual and can end up being a hurdle between getting your affiliates onboarded into your program. For example, you could have an amazing affiliate say ‘yes’ to promote your offer but they never get around to signing your agreement because their inbox is the equivalent of the ‘This is fine’ meme.
Explicit opt-in box during affiliate registration. Add your affiliate agreement to your affiliate registration form as a Terms & Conditions checkbox. Affiliates must check the box and agree to your terms before signing up and getting their links. This is our go-to recommendation because it’s a one-time setup and super easy for affiliates.
Post-registration email notification. You can send an email to each affiliate after they sign up with a clear communication about your affiliate agreement and how they must adhere to your terms now they are an affiliate. We’re not so much a fan of this option as it doesn’t allow your affiliate to consent to your terms and it’s a little tricky if they disagree with anything as they’ve already signed up and have their links.
Don’t start from scratch: affiliate agreement templates to get you started!
We have a bunch of affiliate agreement and affiliate terms & conditions templates to recommend! And our founder, Zoe, has worked with all of these talented lawyers in some capacity or another, which means these are companies we can wholeheartedly recommend!
*Boss Contract Society. Use the code ‘zoelinda’ for a 10% discount!
*Nicole Cheri Oden. Best for budget!
*The Contract Club. A whole vault of contracts for only $30 USD!
*Contracts Market. Best for Canadian business owners.
Lucy Legal. Best for UK business owners.
*Links marked with an asterisk are affiliate links, which means we’ll earn a commission from any purchases made through our links. Thanks in advance for funding our next trip to the pie shop! 🥧
Need help setting up your affiliate program?
At ReferralPie, we’re here to help make running your affiliate program as easy as pie! 🥧
Let’s take all the stress of handling your affiliates off your hands with our flexible affiliate program management subscription. Simply request what you want delivered, and we’ll get it done.
One flat fee.
Unlimited requests.
Unlimited revisions.
Sign up, pause, or cancel anytime.
Learn more about ReferralPie here.
Join The Weekly Slice
Get slices of words, wisdom, and inspiration for your affiliate program every Wednesday!
