Affiliate terms and conditions

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These T&Cs may be used by a merchant as the contractual foundation of a custom affiliate programme.

Author:Alasdair Taylor
Updated:25 September 2014
Length:9 pages (min.)
Notes:4 pages (min.)
Format:MS Word (.DOC)

We designed these affiliate terms and conditions for use to govern web affiliate programmes. Payment triggers may include purchases, registrations and visits.

Where purchases give rise to payments to affiliates, those payments may be a specified amount in relation to each sale, or a percentage of the relevant sale price. At the end of each accounting period (monthly accounting is suggested) the affiliate is credited with the total amount owed.

The agreement assumes that affiliates will apply to join the programme online - and there will therefore be no signed paper copy of the affiliate agreement.

The standard document is designed for single-level affiliate programmes.

In addition to the clauses in the standard affiliate contract, the premium one incorporates provisions covering:

  • sub-affiliates and multiple level programmes;
  • the issue of self-billing invoices;
  • a right for the merchant to request that the affiliate makes changes to the affiliate website; and
  • obligations on the affiliate designed to maintain the quality of the affiliate's website.
  1. Definitions and interpretation
  2. The Agreement
  3. Affiliate Programme
  4. Affiliate obligations
  5. Intellectual Property Rights
  6. Payments / Payments and self billing
  7. Warranties
  8. Indemnity
  9. Limitations and exclusions of liability
  10. Force Majeure Events
  11. Termination
  12. Effects of termination
  13. General

How are the events giving rise to the payment obligation defined here? Does a payment obligation depend upon the definition of an event (e.g. "a purchase by a user within 30 days after a visit through an affiliate link") or upon the recording of the event using the merchant's tracking system?

Because this template has been drafted with the interests of the merchant primarily in mind, a payment obligation will only arise where the relevant event has taken place and that event has been recorded by the merchant's tracking system.

Does the merchant, under these affiliate T&Cs, have any rights to intervene in respect of the content on the affiliate websites?

The affiliate T&Cs include a right for the merchant to request amendments to affiliate links for the purpose of ensuring consistency and quality in the use of the merchant's trade marks and branding. Optionally, this may be extended to cover other elements of affiliate websites.

How can I ensure that poor-quality affiliate websites do not compromise my brand equity?

First, ensure that each affiliate must be approved by you before joining the scheme. Second, include the clause in the template affiliate terms and conditions that says the affiliate must keep its website up-to-date and in good working order, must ensure that the quality of design, content and functionality on the website does not materially deteriorate during the term of the agreement, and must ensure that all marketing of the website is in accordance with applicable law, any applicable codes of practice, and good industry practice generally.

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