How to Create an Affiliate Agreement
Create an affiliate agreement by defining the affiliate's promotional obligations, commission structure and payment terms, brand and content guidelines, tracking and attribution rules, compliance requirements, and termination provisions.
Last updated: February 2025
Step-by-Step Guide
Define the affiliate relationship
State that the affiliate is an independent contractor promoting your products or services in exchange for commission, not a partner, employee, or agent.
- •Clarify that the affiliate has no authority to bind your company.
Set out commission and payment terms
Define the commission model (CPA, CPL, revenue share), payment threshold, payment frequency, and the method of calculation.
- •Include clawback provisions for refunded or fraudulent sales.
Establish brand and content guidelines
Provide rules on how your brand, logos, and products may be represented. Prohibit misleading claims and require ASA advertising code compliance.
- •Require affiliates to disclose the commercial relationship in their content (ASA/CAP requirement).
Address tracking, attribution, and cookie duration
Specify the tracking technology, cookie duration, last-click or first-click attribution, and what happens with duplicate referrals.
- •Standard cookie durations are 30-90 days.
Include compliance and termination clauses
Require compliance with UK advertising standards, data protection law, and specify grounds for immediate termination including fraud or misrepresentation.
- •Reserve the right to withhold commission on suspected fraudulent referrals.
Legal Requirements
Affiliates must comply with the CAP Code (advertising standards) and disclose the commercial relationship. The Consumer Protection from Unfair Trading Regulations 2008 prohibit misleading advertising. UK GDPR applies to any personal data collected through affiliate tracking. The Bribery Act 2010 may apply in certain contexts.
Common Mistakes
Template / Example
When to Get a Solicitor
If running a large affiliate programme, if affiliates operate internationally, or if your products are in a regulated industry.
FAQ
Must affiliates disclose that they earn commission?
Yes. Under the ASA CAP Code and Consumer Protection from Unfair Trading Regulations 2008, affiliates must clearly disclose the commercial relationship, typically using labels like 'ad', 'affiliate link', or 'paid partnership'.
What is the difference between an affiliate and a referral partner?
An affiliate typically promotes products at scale using content, links, and digital marketing. A referral partner usually makes personal introductions. The legal structure is similar, but affiliate agreements tend to be more detailed on content and tracking.
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