What are the key elements of a well-written affiliate marketing contract?

2 points that are relevant in B2B SaaS: 1. PROGRAM APPLICATION - Agree to provide all information reasonably requested by JustCall in connection with the Program application, and represent and warrant that all information that they provide is truthful and accurate. 2. PROGRAM RULES (THE “RULES”) - To participate in the Program, you must comply with the following Rules.

Most affiliate contracts are by default what the affiliate program gives you. It seems to be only the mid to larger sized affiliates that will do bespoke contracts. You just want to make sure your contracts are data compliant and reasonable. In an ideal situation, an affiliate manager might share some insights into similar deals they do.

A well-written affiliate marketing contract should include clear definitions of terms, detailed commission structures, payment schedules, performance metrics, and responsibilities of both parties. Ensure there are clauses for confidentiality, termination, dispute resolution, and compliance with relevant laws. Including a non-compete clause can also protect your interests.

A well-written affiliate marketing contract includes several key elements to ensure clarity and protect both parties. It should clearly define the scope of the partnership, including roles, responsibilities, and expectations for both the advertiser and the affiliate. Commission structures, payment terms, and timelines must be detailed, specifying rates, methods, and frequency of payments. The contract should also outline compliance requirements, such as adherence to advertising standards and prohibited practices like fraud or misleading claims. Termination clauses, dispute resolution mechanisms, and confidentiality agreements are essential to address potential issues.

If a program is paying you up front, then they are taking on the risk that you will deliver. If the compensation is performance based, then you just need to ensure you have the right tracking in place. Just be sure to test the traffic and program first so you're not locked in a long term contract where you are losing out on value. For example, if the EPC of the program drops significantly for any reasons, then you'll want a valid reason to discontinue the contract.

Crucial within this section, is to ensure that you have something in place should tracking fail. If this were to happen, there needs to be something covering the partner for compensation. This would typically be based upon an average earnings per click, applied during that period. Timings should also be clear within this to ensure accountability for the merchant to settle the matter as quickly as possible.

This details the Commission Rates. Ours is as follows: JustCall (all plans - essentials, team/team+, pro/pro+, business) - 20% on the license revenue. For payments, we pay on a net 45 day cycle.

Keep everything simple and easy to understand. Affiliates hate reading lawyer-speak and it will scare them away. Be clear on their obligations to not bid on trademarks and the repercussions of violating the terms.

Areas to cover here:- 1. INTELLECTUAL PROPERTY RIGHTS - Affiliate acknowledges ownership of marketing materials, agree that they will not do anything inconsistent with our ownership, and agrees that all use of the JustCall Materials (including all associated goodwill) will insure to the benefit of, and on behalf of the JustCall. 2. TERM AND TERMINATION - Common pitfalls to avoid and actions we might take.

One mistake most people and companies make is signing contracts without understanding the implications. You'll want to plan for the worst case scenario. Remember the expression, there is nothing more expensive than a cheap lawyer. When you're dealing with bigger companies that have the resources to spend money on legal help, you should expect their contracts to be tighter. Just because one company or party might be bigger, don't assume they won't accept reasonable changes. Nobody wants a dispute so aim for a reasonable clause that allows for an easy resolution.

Incorporating a dispute resolution and governing law clause specifically addressing potential fraud is essential in affiliate marketing contracts. This clause should detail the process for handling fraud allegations, including investigation and resolution mechanisms. It must clearly define the jurisdiction and legal framework governing the agreement, specifying applicable rules and venues for disputes related to fraudulent activities. Furthermore, the contract should outline available remedies and sanctions in cases of fraud, ensuring all parties understand their rights and responsibilities. This focused approach not only protects all stakeholders but also maintains the program's credibility and effectiveness.

Any dispute arising with affiliates will be settled by arbitration administered by the American Arbitration Association (Applicable for US based orgs) under its then-current rules. The arbitration shall be conducted before a panel of one arbitrator in {your registered business city}. The decision of the arbitrator(s) will be made in writing and shall be final and binding on the parties.

Cover additional aspects like contract termination, confidentiality, and non-compete clauses. These provisions add flexibility and safeguard both parties in case of unexpected changes.

Also, make sure your contract is GDPR compliant. Disclose the Personal Information that will be stored if any, and be transparent in how your procedures with third-party data processors are handled .

I think the scariest part of any affiliate agreement is the termination clause. If you're an affiliate earning ongoing trailing commissions from customers you've referred, and there's a clause requiring you to send a minimum number of new customers to keep those commissions, that's concerning. As a smaller affiliate, you may have little recourse against these predatory agreements, but as a larger affiliate, you can negotiate your own terms. Affiliates, don't be afraid to push back, brands need you as much as you need them. And to brands, don’t be unfair by including predatory terms in your agreements. Let's all play fair!

Make sure to cover the terms of contract changes - especially when it comes to Commission, fixed fees and other monetary values - tie them in to performance, but also have in mind that you can readjust terms as per market trends etc.

COMPLAINT NOTIFICATION Affiliate must notify brand of any complaint received by Affiliate regarding any advertisements within twenty-four (24) hours of receiving such complaint. Notice should be sent to the Partnerships Team.

6 essentials we include in our contract: #1 What acquisition channels you can or can't pursue #2 If you're allowed to create brand campaigns for the advertiser #3 Who's in charge of creating the content and what to say #4 Billing & payment terms #5 Comission fees #6 What happens when a party terminates the contract