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What is an affiliate agreement?

An affiliate agreement is a legal contract that outlines the relations between advertisers and their affiliates and sets out the details of their participation in an affiliate program. The agreement will help both program owners and affiliates understand what is required from them and what they can expect in return for their efforts. Particularly, the agreement outlines the responsibilities of both parties, including what type of content can be published, whether or not affiliates can use advertisers’ brand logos and images, and potential performance metrics that could be met with incentives. In other words, an affiliate agreement is the terms and conditions of any affiliate program.

Advertisers should have a robust set of terms and conditions when launching an affiliate program to ensure it runs smoothly. It is important to devote time and elaborate on a document that clearly outlines the rules of the game to avoid any confusion and misunderstanding with affiliates. 

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An affiliate commission is a percentage that affiliates earn when they drive traffic or sales to advertisers' products. Altogether at the end of the month, all commissions amount to a publisher’s salary. The average affiliate commission rate varies greatly depending on an affiliate vertical and a product type, but it is common for the commissions to vary between 5 and 30%.

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