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Affiliate Marketing Agreement

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AFFILIATE MARKETING AGREEMENT

This Affiliate Marketing Agreement ("Agreement") is entered into as of Effective Date: by and between Company Name: , a organized under the laws of with principal place of business at (\"Company\"), and Affiliate Name: , an with address at (\"Affiliate\").

RECITALS

WHEREAS, Company develops, markets, and sells the Products and Services described herein and seeks to expand sales through third-party promoters; and

WHEREAS, Affiliate operates promotional channels and desires to promote Company’s Products and Services in exchange for compensation based on sales driven by Affiliate; and

WHEREAS, the parties desire to set forth the terms and conditions under which Affiliate will promote Company’s Products and Services and receive commissions.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Products and Services" means the goods and services offered for sale by Company that Affiliate is authorized to promote. Affiliate shall promote only those Products and Services expressly approved by Company in writing.

1.2 "Qualified Sale" means a sale of Company’s Products and Services (i) resulting directly from Affiliate’s promotional efforts using assigned tracking links or codes, (ii) that is paid in full and not subject to refund or chargeback at the time of payment, and (iii) that complies with Company’s then-current promotional policies.

2. APPOINTMENT; RELATIONSHIP

2.1 Appointment. Company hereby appoints Affiliate as a non-exclusive affiliate to promote the Products and Services in the Territory set forth below, and Affiliate accepts such appointment subject to the terms of this Agreement.

2.2 Independent Contractor. Affiliate is an independent contractor. Nothing in this Agreement creates an employment, partnership, joint venture, or agency relationship between the parties. Affiliate has no authority to bind Company except as expressly provided in this Agreement.

3. SCOPE OF SERVICES

Affiliate shall use commercially reasonable efforts to promote Company’s Products and Services using approved marketing materials, tracking links, coupon codes, and any other mechanisms provided by Company. Affiliate shall not make any representations or warranties on behalf of Company.

4. COMPENSATION

4.1 Commission Rate. Company shall pay Affiliate a commission equal to % of the Net Revenue from each Qualified Sale attributable to Affiliate’s efforts as tracked by Company’s tracking systems.

4.2 Net Revenue. "Net Revenue" means gross amounts received by Company from a Qualified Sale less taxes, shipping, discounts, refunds, chargebacks and amounts paid to third parties in connection with the sale.

5. PAYMENT TERMS

5.1 Payment Schedule. Commissions will be calculated monthly and paid within days after the end of the month in which the Qualified Sale is completed, subject to adjustment for refunds and chargebacks.

6. TRACKING AND REPORTING

6.1 Tracking. Company will provide Affiliate with tracking links, coupon codes, or other tracking mechanisms. Affiliate is responsible for implementing tracking in accordance with Company’s instructions. Company’s tracking logs shall be conclusive absent manifest error.

7. INTELLECTUAL PROPERTY

7.1 License. Subject to the terms of this Agreement, Company grants Affiliate a limited, revocable, non-exclusive, non-transferable license to use Company’s trademarks, logos and approved marketing materials solely to perform Affiliate’s obligations under this Agreement and solely during the Term.

7.2 Restrictions. Affiliate shall not alter Company’s materials, create derivative works, or use Company’s marks in a way that disparages Company or its products. All goodwill arising from Affiliate’s use of Company marks inures exclusively to Company.

8. CONFIDENTIALITY

8.1 Confidential Information. "Confidential Information" means non-public information disclosed by a party that is designated confidential or that reasonably should be understood to be confidential. Affiliate shall not disclose or use Confidential Information except as necessary to perform under this Agreement.

8.2 Exceptions. Confidential Information does not include information that is or becomes publicly available through no fault of the receiving party, was known prior to disclosure, or is independently developed.

9. REPRESENTATIONS, WARRANTIES AND COVENANTS

Each party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations. Affiliate further represents that its promotional activities will comply with all applicable laws, regulations, and industry standards and shall not include false or misleading statements about Company or its products.

10. INDEMNIFICATION

Affiliate shall indemnify, defend and hold harmless Company and its officers, directors and employees from and against any third-party claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys’ fees) arising out of Affiliate’s breach of this Agreement, negligence, or misconduct in connection with promotional activities.

11. LIMITATION OF LIABILITY

Except for liability arising from a party’s willful misconduct, gross negligence, or indemnification obligations, neither party shall be liable to the other for consequential, incidental, punitive or exemplary damages, and each party’s aggregate liability arising from or related to this Agreement shall not exceed the total commissions actually paid to Affiliate in the twelve (12) months preceding the claim.

12. TERM AND TERMINATION

12.1 Term. The term of this Agreement commences on the Effective Date and continues until terminated as provided herein.

12.2 Termination for Convenience. Either party may terminate this Agreement for any reason upon days’ prior written notice to the other party.

12.3 Immediate Termination. Company may terminate immediately for cause if Affiliate materially breaches this Agreement and fails to cure within days after written notice.

13. POST-TERMINATION

Following termination, Affiliate shall cease representing itself as an authorized affiliate and shall discontinue use of Company marks. Company will pay any earned commissions for Qualified Sales completed prior to termination in accordance with the payment schedule, subject to adjustments for refunds and chargebacks.

14. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party designates by notice in accordance with this Section. Notices are effective upon receipt.

15. AMENDMENTS; WAIVER; COUNTERPARTS

Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties. No failure or delay in exercising any right shall constitute a waiver. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which constitute one instrument.

16. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

This Agreement shall be governed by and construed in accordance with the laws of without regard to conflict of law principles. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force. This Agreement constitutes the entire agreement between the parties concerning its subject matter and supersedes all prior agreements and understandings.

17. MISCELLANEOUS

Neither party may assign this Agreement without the prior written consent of the other party, except that Company may assign to an affiliate or successor in connection with a merger, sale of substantially all assets, or corporate reorganization. The parties shall comply with all applicable privacy and data protection laws in connection with tracking and processing personal data.

Company:

By:

Date:

Affiliate:

By:

Date:

Enter text✕

What an Affiliate Marketing Agreement Covers

An Affiliate Marketing Agreement is a contract between a merchant (brand) and an affiliate (publisher) that defines referral activity, compensation, and performance terms. It sets the scope of permitted marketing methods, tracking and reporting mechanisms, commission rates or fee structures, payment schedule, termination rights, confidentiality, and intellectual property ownership. The agreement also allocates responsibility for tax reporting, compliance with advertising laws, and dispute resolution. Well-drafted agreements reduce ambiguity, protect brand assets, and define how clicks, leads, or sales will be validated and paid.

Why a Clear Agreement Matters for Affiliates and Merchants

A written Affiliate Marketing Agreement creates predictable payment rules, reduces disputes over tracking and attribution, and protects both parties’ IP and data. It clarifies acceptable promotional channels, privacy responsibilities, and termination mechanics.

Why a Clear Agreement Matters for Affiliates and Merchants

Who Typically Signs an Affiliate Marketing Agreement

Clear role assignment in the agreement helps ensure correct invoices, accurate 1099 reporting, and prompt payments.

  • Independent affiliates and influencers who refer traffic or sales and require defined commission and payment terms.
  • Merchants, ecommerce teams, or marketing managers needing consistent tracking, anti-fraud protections, and payment schedules.
  • Agencies and platform operators that manage multiple affiliate relationships and centralize reporting and compliance.

Core Clauses to Include in a Professional Agreement

Include provisions that govern commissions, tracking, term and termination, compliance with laws, ownership of creative assets, and dispute resolution to reduce future conflicts.

Parties

Identify the legal names and entity types of merchant and affiliate, including DBA names and taxpayer identification to support invoicing and tax forms.

Compensation

Describe commission model (percent, flat fee, CPA/CPL), payment thresholds, payment method, schedule, and treatment of returns or chargebacks.

Tracking & Attribution

Define accepted tracking technologies, cookie duration, invalid traffic policies, and the merchant’s final authority on attribution disputes.

Permitted Marketing

List allowed and prohibited channels (email, PPC, coupon sites, trademark bidding), and required disclosures for endorsements and advertising.

Confidentiality

Protect trade secrets, campaign metrics, and agreed commercial terms with a limited duration NDA clause and permitted disclosures.

Termination

State termination for convenience and for-cause grounds, notice requirements, and post-termination payment reconcilement and audit rights.

Step-by-Step: Completing the Agreement

Follow a consistent sequence to minimize omissions and ensure all signatory requirements are met.

  • 01
    Gather details: Collect legal names, TINs, and payment details before starting.
  • 02
    Set terms: Agree on commission model, tracking, and payment schedule.
  • 03
    Add protections: Include confidentiality, IP, and compliance clauses.
  • 04
    Sign and archive: Execute signatures and retain records per policy.

Configuring an Online Workflow for Execution

Map fields and signer roles before sending to ensure clean routing and auditability in an eSignature platform.

Field Configuration
Signature block Assign signer, required checkbox, date field
Tax form attachment Require W-9 upload for U.S. affiliates
Tracking parameters Include read-only fields for affiliate ID and cookie window
Audit trail Enable IP, timestamp, and authentication logs

Where to Send and How Execution Typically Flows

Execution workflows vary; common destinations include accounting, affiliate ops, and legal for review and storage.

  • Send to affiliate: Email link or direct signer access
  • Affiliate signs: Signs, dates, and attaches required forms
  • Merchant review: Operations confirms tracking details
  • Archive copy: Store executed copy and audit trail

Technical Considerations for Digital Execution

Ensure the platform complies with ESIGN/UETA and, when handling health or financial data, supports applicable certifications and BAAs to meet regulatory needs.

  • File formats: PDF, DOCX supported
  • Integrations: CRM and payment connectors
  • Authentication: Email, SMS, or advanced

Timing and Important Dates to Track

Record key dates for agreement effectiveness, payment cycles, and tax reporting to avoid late payments or compliance gaps.

Effective date:

Date when the agreement terms begin

Payment cycle date:

Monthly or Net 30 cutoff for payable commissions

Invoice submission cutoff:

Last day to submit claims for the period

Audit window:

Period allowed to request verification of transactions

Tax reporting deadline:

Prepare 1099 information by Jan 31

Common Preparation Mistakes to Avoid

  • Vague commission language that omits calculation method can lead to disputes and costly reconciliations.
  • Failing to require a W-9 or correct TIN may trigger backup withholding and delay payments.
  • Not defining accepted tracking methods or cookie windows creates attribution disagreements between parties.
  • Omitting prohibited-promotion rules permits unauthorized channels, which can damage brand reputation and cause removal of affiliates.

Potential Legal and Financial Risks

Tax withholding: Backup withholding may apply
1099 penalties: Late or incorrect forms incur fines
Contract disputes: Can lead to arbitration or litigation
Brand harm: Unauthorized promotions cause reputational loss
Privacy violations: Noncompliance risks regulatory action
Payment reversals: Refunds and chargebacks may reduce commissions

Comparison: eSignature Pricing and Key Capabilities

Pricing and capabilities vary; signNow is listed first. Compare starting price, trials, bulk send, audit trails, and HIPAA support across vendors.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common execution, compliance, and post-signature questions encountered with Affiliate Marketing Agreements.


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