People may have told you about becoming “affiliated” with their online business, or maybe you`re an Amazon partner yourself. The term “affiliate” seems confusing, so we will try to clarify the meaning below. An affiliation agreement is an agreement between two parties that defines and regulates the terms and conditions between the two parties, which defines and regulates the affiliation relationship. The affiliation agreement defines the obligations of both parties, including the duration of the agreement, the terms of payment and commissions to be paid to the Affiliate on the basis of sales or traffic on a website, etc. The affiliation agreement should not be for commercial purposes only. For example, an affiliation agreement may be made between institutions, universities, non-profit organizations to promote academic or research-oriented activities. The final agreement defines the relationship between the parties in which the Affiliate recognizes and promotes an understanding of the company/institution`s policy. The concept of an affiliate agreement is “mutual benefit.” The parties intend to benefit from this agreement. In a commercial agreement, the party giving the affiliation aims to market/publish/promote its product through a related company that acts as an agent and receives commissions in return. In this time of increasing globalization and competition, partnership agreements are only intended to give the parties more opportunities to benefit from mutual cooperation in order to increase the productivity of the agreement. The second essential clause is the “payment/compensation structure/structure of the Commission.” This is the cornerstone not only for affiliation agreements, but for any agreement as a whole.
The terms of payment of the agreement are generally defined in a percentage to be paid within a specified period of time. By signing the affiliate agreement, the Affiliate agrees to comply with the company`s policies and to market/publish the company`s product/brand mentioned in the agreement. The agreement is a “quid pro quo” in nature, in return, the affiliate earns commissions/incentives for each recommendation/sale by it.