Website Affiliate Agreement – The Business Of Blog


An affiliate marketing agreement is a legally binding contract between an individual or organization and a specific business that agree to promote or advertise the business in return for a specified commission amount. As per corporate laws and regulations, an affiliate is considered as a related company to another company usually in a supervisory role. The companies usually appoint one individual to be the head of the affiliate marketing department while the other will be responsible for the management of the entire department. The main aim of the manager or the head of the affiliate marketing department is to increase the number of sales generated by the company.


Most commonly the written notice part of the affiliate marketing agreement may be very general and may not provide any guidance as to what should be included or not. The general agreement may state that either party may terminate the agreement at any time; however it does not define what constitutes’terminating the relationship’ or exactly how termination of the relationship will affect the parties. It is the responsibility of the person making the agreement (the affiliate) to clearly spell out in the agreement, what exactly is intended and required. The written notice should provide notice of the intent to terminate to enable either party to deal with it in good faith.



Another common problem in affiliate marketing agreements is that it fails to specify what will constitute as ‘breach of promise’ or what will result to the affiliate if they breach the agreement. The failure to specify these key terms makes it very difficult to enforce the agreement. Another major issue that often arises from these types of agreements is that one party (usually the affiliate) will feel that they have been’misused’ by the other party (the company). In such cases, the party involved may choose to take legal action against the affiliate. There are certain things that both the parties can do to prevent such situations from arising.



Firstly, both the merchant and the affiliate should agree on the payment terms. These terms should include the date when the payment is expected, how much is due and what happens if the agreed upon amount is not received by the merchant in its entirety by the time agreed upon in the affiliate marketing agreement. There should also be a clause stating that neither party will hold the merchant responsible for processing refunds. However, even this arrangement can be abused by both parties in case the affiliate links are never clicked by the visitors, leading to a loss for the merchant.


Another common problem is that both parties may not have agreed on the format of the email that contains the affiliate link. This can cause confusion amongst the readers of the email. Both parties should try to keep it simple and avoid fancy emailing. Also, the links to the merchant’s website should be displayed prominently and in an easy to read format. Again, both parties should try their best to make it as easy as possible for the visitor to click on the link to the merchant’s website. If this does not work, both parties should consider changing the format of the affiliate marketing agreement.


A third party’s breach of the agreement could result into serious legal action. It would be in the interest of both the merchant and the affiliate to ensure that they are diligent in protecting each others rights. Either party may take legal action against the third party. This can either be done in writing, or via electronic means. If done in writing, it is important to spell out in legible language all the exact terms of the agreement.


A written agreement will also allow both parties to seek arbitration or mediation to settle disputes. This is particularly useful where one party is lagging behind the other and unable to resolve the matter amicably. The merchant can use the arbitration or mediation process to address any issues arising from the affiliate marketing links that have been placed on the website of the affiliate. Similarly, if the merchant has agreed to pay for the placement of affiliate links on the website of the affiliate, it is wise to be able to establish whether or not they have paid for the rights to use the affiliate link on the merchant’s website.


Finally, a merchant and website affiliate agreement should also contain information regarding the type of payment that will be made by the merchant to the affiliate when the affiliate clicks a link from the merchant’s website and directs that visitor to the affiliate site. For example, it may be helpful for an affiliate to be paid in cash, or through a discount coupon program. Again, it is important for the agreement to spell out exactly which payments the merchant will make. Finally, a website affiliate agreement should contain language stating that all agreements between the merchant and affiliate are null and void if either party ever causes damage to another party’s credit card or personal information. This protects both parties and helps to protect the integrity of the business.