Rxpaola1925's Blog

March 13, 2010

Affiliate Agreement(my class 3)

Filed under: my BUS.IT 5 class — rxpaola1925 @ 8:29 am

Most affiliate programs have agreements in place, primarily to cover their butts. However, these agreements should also cover yours. If the program you are considering doesn’t have an agreement published on the site, move on. Without an agreement, it’s much too easy for them to shaft you for money you’ve earned.

An affiliate agreement are usually lengthy and peppered with long-winded legalese. It doesn’t matter. You should read them completely and carefully or you could be in for a nasty surprise. It is a comprehensive agreement prepared for those websites that intend to operate their own affiliate programme. Such programmes, using custom designed software or off the shelf packages, can enable any trading website to pay commission to other websites that deliver customers or leads.

In order to ensure that the process and terms are clear to the affiliate websites that will promote your website, you should ensure that you have a legal Agreement published on your site, to which new affiliates are rewuired to agree.

This agreement includes a “self billing” option. The capability to allow self-billing (i.e. where the merchant prepares the invoices on behalf of affiliates) can ease the administration burden. Use of this option requires approval from HM Customs & Excise, which is a straightforward process.

This document is suitable for websites hosted in England, Wales and Scotland and contains the following clauses:

  • application and approval process
  • links and licence for promotional material
  • sales and commission tracking mechanism
  • limitations on use
  • payment process, VAT and self billing (optional)
  • data protection
  • conditions and availability
  • termination
  • limitations on liability.

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