Affiliate Agreement

Create an Affiliate Agreement Online - Complete Guide

An Affiliate Agreement is a legally binding document that defines the relationship between a business (the “merchant”) and an individual or organisation (the “affiliate”) who promotes its products or services in exchange for commission on sales, leads or referrals. It sets out how commissions are calculated, what marketing activities are allowed, how brand assets may be used and the responsibilities of both parties.

Affiliate Agreements are essential for businesses running referral programmes, influencer partnerships, SaaS affiliate schemes, or performance-based marketing campaigns - helping protect brand integrity, prevent disputes and ensure compliance with advertising and data-privacy rules.

This guide explains everything you need to know about Affiliate Agreements: what they include, when to use one, how commissions and compliance obligations work and how to create a clear, legally reliable agreement tailored to your affiliate programme.

CONTENTS

What is an Affiliate Agreement?

An Affiliate Agreement (also known as a Referral Agreement or Partner Agreement) is a legally binding contract that sets out the terms between a business (the merchant) and a person or organisation (the affiliate) who promotes the merchant’s products or services in exchange for commission.

At its core, the agreement defines:

• How commissions are earned - including the commission model, validation rules and payout terms.
• What marketing activities are permitted - approved channels, brand guidelines and restrictions.
• How tracking works - such as the use of affiliate links, cookies or platform dashboards.
• Compliance obligations - advertising disclosures, data protection rules, and platform-specific requirements.
• The duration of the partnership - including renewal terms and performance conditions.
• Grounds for termination - such as breach, misuse of brand assets, fraud or inactivity.

Affiliate Agreements provide clarity, transparency and legal protection for both sides. They help prevent disputes over commissions, ensure affiliates promote products ethically, and protect the merchant’s brand, data and reputation.

They also create a consistent foundation for scaling an affiliate or partner programme safely.

Who Needs an Affiliate Agreement?

An Affiliate Agreement is useful for any business or individual involved in performance-based marketing, where commissions are paid for referrals, leads or completed sales.

It protects both sides by defining expectations, payment rules and compliance requirements before any promotion begins.

You should use an Affiliate Agreement if you are:

Businesses & Organisations

• E-commerce stores running affiliate, referral or influencer programmes.
• SaaS and software companies using revenue-share or recurring commission models.
• Service providers (consultants, agencies, trainers, coaches) rewarding referrals from partners.
• Marketplaces and platforms allowing creators or partners to earn commission through links.

Affiliates, Creators & Partners

• Influencers and content creators promoting products on social media, blogs, YouTube or TikTok.
• Publishers, review sites and comparison websites that generate tracked sales.
• Email marketers or performance marketers using tracking links, codes or landing pages.
• Professional introducers who receive referral fees for generating leads or clients.

Why an agreement matters

Whenever money changes hands for referrals, tracked links or performance-based marketing, a written Affiliate Agreement helps:

• prevent disputes over commission
• ensure lawful and ethical advertising
• protect brand reputation and intellectual property
• define what marketing is (and isn’t) allowed
• maintain compliance with disclosure and data-protection rules

Benefits of an Affiliate Agreement

A well-drafted Affiliate Agreement creates stability, protects your brand and ensures your affiliate programme can grow without legal or operational risks. It sets expectations for both sides and provides a clear framework for how commissions, marketing activity and compliance are managed.

Key benefits include:

1. Clear and predictable commission rules

Defines exactly how earnings are calculated, validated and paid - preventing disputes over tracking errors, attribution, refunds or chargebacks.

2. Strong brand protection

Ensures affiliates use only approved marketing materials, avoid misleading claims and represent your brand responsibly across all channels.

3. Legal and regulatory compliance

Helps both parties comply with:

• advertising disclosure rules (#ad, #affiliate)
• consumer protection laws
• data protection and cookie requirements
• platform-specific policies (Google, Meta, TikTok, Amazon, etc.)

This reduces the risk of regulatory penalties or platform bans.

4. Reduced operational and financial risk

Sets boundaries on what affiliates can and cannot do - preventing:

• unauthorised discounts or coupon misuse
• PPC bidding on your brand name
• email spam or prohibited marketing practices
• misuse of customer data

5. Transparent expectations and accountability

Clarifies each party’s responsibilities, timelines, performance expectations and reporting requirements, reducing friction and confusion.

6. Scalable programme growth

With rules, rights and restrictions defined upfront, you can onboard new affiliates quickly and expand your programme without creating inconsistent or unclear arrangements.

When to Use an Affiliate Agreement

An Affiliate Agreement should be used whenever a business rewards another party for promoting its products or services, whether through commissions, referral fees or revenue-sharing. It ensures the relationship is legally clear, commercially fair and compliant with advertising and data laws.

You should use an Affiliate Agreement when:

• Launching an affiliate, referral or partner programme
  Ensures every affiliate operates under consistent, enforceable rules.
• Working with influencers, creators or content partners
  Especially when promotions include referral links, discount codes or paid recommendations.
• Offering tiered commissions or recurring revenue models
  Helps define how earnings scale, how renewals are calculated and how long commissions apply.
• Providing affiliates with branded assets or marketing materials
  Protects your intellectual property and sets boundaries around acceptable marketing practices.
• Using tracking links, cookies or analytics tools
  Ensures compliance with disclosure, consent and data protection requirements.
• Running performance-based campaigns (CPA, CPS, CPL)
  Reduces disputes over attribution, validation and payment triggers.

An Affiliate Agreement should always be signed before an affiliate begins promoting your products or services - and updated whenever commission structures, programme policies or compliance rules change.

Key Clauses to Include in an Affiliate Agreement

A strong Affiliate Agreement sets out the commercial terms, compliance expectations and operational responsibilities for both parties.

The following clauses appear in most well-structured affiliate or referral agreements:

1. Commission and Payment Terms

• Commission model (percentage, fixed fee, tiered, recurring revenue share).
• How commission is tracked (unique links, cookies, attribution rules).
• Validation rules (e.g., fraud checks, refund/chargeback adjustments).
• Payment schedule (monthly, quarterly, or after a holding period).
• Minimum payout thresholds or banking requirements.

2. Affiliate Obligations

• Use of approved marketing materials and brand guidelines.
• Restrictions on misleading, deceptive or non-compliant advertising.
• Mandatory disclosure of affiliate relationships (e.g., “#ad”, “affiliate link”).
• Compliance with data protection, privacy, email marketing and platform rules.
• Accurate use of tracking links and responsibility for traffic quality.

3. Merchant (Business) Obligations

• Providing accurate information, marketing assets and up-to-date product details.
• Maintaining a functioning tracking system with reasonable uptime.
• Paying commissions within the agreed timeframe.
• Notifying affiliates about program changes, paused products or policy updates.

4. Intellectual Property Rights

• Permission to use trademarks, logos, product images and approved content.
• Restrictions on copying, modifying or misusing brand assets.
• Requirements to remove marketing materials on termination.

5. Term and Termination

• Whether the agreement is fixed-term, open-ended or program-based.
• Termination rights (notice, breach, inactivity, prohibited conduct).
• Treatment of pending or unpaid commissions after termination.

6. Liability and Indemnity

• Responsibilities for losses caused by breach, unlawful activity or misuse of brand assets.
• Limitations on liability for indirect or consequential loss.
• Indemnity obligations for non-compliant advertising or regulatory breaches.

7. Governing Law and Jurisdiction

• Which country’s law applies.
• How disputes will be handled (e.g., courts, arbitration, mediation).

These clauses ensure both the merchant and the affiliate understand the commercial structure, compliance requirements and the legal boundaries of their collaboration - reducing disputes and protecting both sides as the program grows.

Legal Requirements for an Affiliate Agreement

Affiliate programs operate across multiple regions and platforms, so the legal requirements will depend on the country where you and your affiliates are based. While rules differ internationally, most jurisdictions follow similar principles around consumer protection, advertising transparency and data privacy.

A compliant Affiliate Agreement should ensure that affiliates follow these core legal standards:

1. Advertising & Consumer Protection Laws

Most countries require affiliate promotions to be truthful, transparent and not misleading.

Typical obligations include:

• Clear disclosure of the affiliate relationship (e.g., “#ad”, “#affiliate”, “paid partnership”).
• Avoiding exaggerated claims, false pricing, unverifiable testimonials or deceptive practices.
• Ensuring all marketing materials comply with local advertising standards.
• Examples of global equivalents include:
• FTC Endorsement Guidelines (United States)
• ASA/CAP Code requirements (UK)
• EU Unfair Commercial Practices Directive
• ACCC advertising rules (Australia)

Regardless of location, disclosure of affiliate links is mandatory in almost all major jurisdictions.

2. Data Protection & Privacy

If affiliates handle or influence the collection of personal data (e.g., through cookies, tracking links or email sign-ups), they must comply with relevant privacy laws, such as:

• GDPR / UK GDPR (Europe & UK)
• CCPA / CPRA (California, USA)
• PIPEDA (Canada)
• PDPA (Singapore)
• Local cookie and tracking regulations

Key requirements include:

• Transparent cookie use and tracking disclosures
• Lawful handling of customer information
• No scraping, spamming or unauthorised marketing

3. Email, Messaging & Digital Marketing Rules

Affiliates must comply with anti-spam and e-marketing laws when promoting your products, including:

• CAN-SPAM Act (USA)
• PECR (UK)
• EU ePrivacy rules
• CASL (Canada)

This usually means:

• No unsolicited bulk messaging
• Accurate sender identification
• Clear opt-out mechanisms

4. Platform & Marketplace Policies

Affiliates promoting on social media or search platforms must follow the rules of those channels, including:

• Meta / Instagram Branded Content policies
• TikTok advertising and disclosure rules
• YouTube paid promotion guidelines
• Google Ads reseller and disclosure rules
• Amazon Associates Programme policies

Breaches of platform policy can result in:

• Removal of content
• Suspension of accounts
• Loss of affiliate eligibility

Your Affiliate Agreement should require affiliates to comply with these platform rules at all times.

5. Contract Law Requirements

For an affiliate contract to be enforceable, it should generally:

• Clearly identify both parties
• Set out rights and obligations
• Describe commissions and payment terms
• Include compliant termination clauses
• Be signed or accepted (digitally or in writing)

A well-drafted Affiliate Agreement ensures both parties comply with advertising, privacy and marketing laws - minimising regulatory risk while protecting your brand and ensuring transparent, ethical promotion across all channels.

How to Create an Affiliate Agreement

Creating an Affiliate Agreement involves two key elements:

• Understanding the steps required to draft a clear, enforceable contract.
• Choosing the method that best suits the complexity of your affiliate program.

The Steps to Create an Affiliate Agreement

A strong Affiliate Agreement must be structured, transparent and legally compliant. Although the exact requirements vary across jurisdictions, most agreements follow the process below:

1. Define the affiliate relationship

Clarify who the merchant is, who the affiliate is, the nature of the program and what products or services are being promoted.

Include details such as:

• The affiliate’s role
• Whether they generate leads, sales or traffic
• Any territory, audience or channel restrictions

2. Set commission rates and payment rules

Commission clarity is essential. Specify:

• Commission structure (percentage, fixed fee, multi-tier, recurring revenue)
• When commission becomes “earned” (e.g., validated sale, end of refund period, subscription renewal)
• Payout thresholds, methods and payment timelines
• Chargebacks, refunds, clawbacks and invalid traffic rules

This prevents disputes later and supports accurate financial reporting.

3. Define marketing rules and compliance obligations

Affiliates must know exactly how they can promote your brand. This protects your brand reputation and ensures regulatory compliance.

An effective agreement outlines:

• Approved channels (e.g., PPC, social media, blogs, email, influencer posts)
• Prohibited practices (e.g., bidding on brand keywords, spam messaging, misleading claims)
• Disclosure requirements (e.g., “#ad”, “affiliate link”)
• Any brand assets or wording guidelines

4. Address data protection and tracking

If tracking links, cookies or customer data are involved, the contract should cover:

• Compliance with relevant data protection laws (GDPR, CCPA, etc.)
• Use of third-party affiliate tracking tools
• Cookie consent requirements
• Restrictions on collecting or storing customer data

5. Include dispute resolution, suspension and termination terms

In order to protect both sides and keep the program operations smooth - set out the following:

• Notice periods
• Grounds for immediate termination (e.g., fraud, misleading ads, breach of law)
• What happens to unpaid or pending commissions after termination
• The process for resolving disputes

6. Confirm governing law and jurisdiction

Specify which country’s law governs the agreement to avoid cross-border uncertainty.

7. Finalise, sign and store the agreement

Once drafted, both parties should:

• Review the terms
• Sign or digitally accept the agreement
• Keep accessible copies for future reference

The agreement should also be updated if the commission model, marketing rules or legal obligations change over time.

Different Ways to Create an Affiliate Agreement

There are several approaches you can take, depending on complexity, budget and the number of affiliates you work with.

1. DIY Affiliate Agreements

• Best for: very simple, low-risk arrangements
• Pros: free, fast
• Cons: higher risk of unclear terms, missing legal clauses, non-compliant marketing rules

2. Online Affiliate Agreement Tools

• Best for: most straightforward or moderately complex programs
• Pros: guided questions, consistent structure, solicitor-verified templates
• Cons: may not be suitable for highly complex programs or international networks

3. Business / Contract-Writing Services

• Best for: mid-level commercial setups
• Pros: more customised than DIY; cost-effective
• Cons: quality varies; providers aren’t always legally qualified

4. Solicitor-Drafted Affiliate Agreements

• Best for: high-value programs, multi-country affiliates, influencer partnerships, legal risk
• Pros: highest accuracy and legal protection
• Cons: most expensive option

5. Template Packs / Contract Kits

• Best for: users comfortable adapting legal templates
• Pros: low-cost foundation
• Cons: still require careful drafting and checking

Affiliate Agreement Costs

The cost of creating an Affiliate Agreement varies depending on how detailed the arrangement is and the method you choose to prepare it. Simple referral arrangements are often inexpensive, while multi-tier, influencer-driven or international programs typically require more specialised drafting.

Typical price ranges include:

DIY or self-drafted agreements

• Cost: Free
• Suitable for very simple, low-risk arrangements, but carries the highest risk of unclear or incomplete terms.

Online affiliate agreement generators or professional templates

• Cost: £20–£80
• A fast, cost-effective way to create a structured, compliant agreement for most straightforward programs.

Document-writing or paralegal services

• Cost: £75–£250
• Useful for mid-complexity setups where some customisation is needed.

Solicitor-drafted Affiliate Agreements

• Cost: £300–£900+
• Recommended for larger affiliate networks, influencer partnerships, recurring-revenue models or where international compliance is relevant.

Affiliate Agreement Template

The example below shows a simple, general structure of how an Affiliate Agreement is typically presented. It illustrates the type of information such agreements usually contain - such as commission terms, marketing rules and termination rights.

Actual wording will vary depending on your program, industry, commission model and legal requirements.

This Agreement is made between [Business Name] (“the Merchant”) and [Affiliate Name] (“the Affiliate”).

1. Affiliate Role & Commission
The Affiliate agrees to promote the Merchant’s products or services and will receive [percentage]% commission on valid sales generated through their unique referral links or codes.

2. Marketing Rules
The Affiliate must comply with the Merchant’s marketing guidelines, disclosure requirements and all applicable advertising and consumer protection laws.

3. Commission Payments
Commissions will be paid monthly (or as otherwise agreed), provided the minimum payout threshold of £[amount] is met and all transactions have been validated.

4. Term & Termination
Either party may terminate this Agreement by giving [number] days’ written notice. Outstanding approved commissions will be paid in accordance with the payment schedule.

Signed by the parties:

Merchant:
Signature: ____________________
Name: ____________________
Date: ____________________

Affiliate:
Signature: ____________________
Name: ____________________
Date: ____________________

Robot Lawyer provides a solicitor-verified Affiliate Agreement document that clearly defines commission terms, marketing obligations, payment schedules, compliance requirements and the rights of both the business and the affiliate. It gives you a structured, legally reliable contract that supports transparent, scalable partnership activity.

Create a professional Affiliate Agreement — with Robot Lawyer

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Affiliate Agreement FAQs

Are affiliates considered employees?

No. Affiliates are independent contractors - not employees, agents or representatives of the business. They do not receive employment rights and are responsible for their own tax, compliance and marketing activity unless otherwise agreed.

Do I need an Affiliate Agreement for influencer marketing?

Yes. Any arrangement involving paid promotion, referral links, discount codes, commission or revenue-sharing should be governed by a written agreement. This protects both parties and ensures compliance with advertising and disclosure rules.

Can one contract be used for multiple affiliates?

Yes. Most businesses use one standard agreement and issue individual schedules outlining affiliate-specific terms (such as commission rate, promotional channels, or territory).

What happens if an affiliate breaches the rules?

The merchant can suspend the affiliate, withhold unpaid commissions or terminate the agreement entirely, depending on the severity of the breach. Serious violations - such as misleading advertising or misuse of brand assets - may also lead to additional legal action.

Do affiliates need to disclose their relationship with the merchant?

Yes. In most jurisdictions affiliates must clearly disclose paid partnerships in posts, videos, emails or written content (e.g., “#ad”, “#affiliate”, or platform-specific disclosure notes).

Is an Affiliate Agreement legally binding?

Yes - if properly drafted, agreed and signed. It becomes a binding commercial contract that defines rights, obligations, limitations of liability and payment terms.

Can an Affiliate Agreement cover cookies and tracking?

Yes. Many affiliate programs rely on cookies, pixels or tracking links. Your agreement can (and should) outline how tracking works, cookie durations and how invalid or fraudulent activity is handled.

Create an Affiliate Agreement Online

Need an Affiliate Agreement? Robot Lawyer helps you generate a clear, legally reliable contract in minutes - designed to protect your affiliate program, ensure compliant marketing, and set out commission terms with full transparency.

How it works:

1. Select Create Document → below to begin.
2. Answer a few quick questions about the affiliate relationship, commission structure and marketing rules.
3. Receive a solicitor-verified Affiliate Agreement instantly, tailored to your commercial model.
4. Review, sign and share the document with your affiliate.

Start the questionnaire to generate your document

✔ Customisable for any business, product or industry
✔ Covers commissions, data protection, IP use and compliance obligations
✔ Ready for instant download, with solicitor review available if needed