Affiliate — a person or a juridic entity that provides the personal resources to promote the products or services of another company. This entity acts as a subsidiary of a main company. The main company has control over the affiliate in several factors: ownership, management system, relationships with other companies, and contractual relationships. In return, the affiliate receives commission fees (a percentage of the sales, traffic, or attracted clients). This process proceeds within the affiliate program.
The relationship between the affiliate and advertiser is described in the affiliate agreement.
An Affiliate Agreement is a service contract between an advertiser and an affiliate. This contract defines the affiliate relationships, describes the services to provide, and indicates the responsibility of parties and the amount of a commission for services.
By signing the agreement the affiliate confirms that he understands the company's requirements and the outlined terms. The affiliate agreement may include the requirement to comply with federal anti-spam legislation.
The Affiliate Agreement should cover the following things:
- Terms of agreement and circumstances of its termination.
- Rights and duties of parties.
- Content of the affiliate site.
- Terms and conditions of payment for the services.
- Licenses that are required from the client and affiliate.
- Governing law and jurisdiction.
- Ownership of intellectual property.
Types of Affiliates
The affiliates distinguish according to the type of instrument they apply for a promotion. Sometimes the affiliates offer the whole marketing program that includes several instruments.
Pay Per Click (PPC). These affiliates use paid ads and create advertising campaigns.
Content marketing. These affiliates use blogs, magazines, and news sites. They help both to improve brand reputation, generate traffic, and improve the SEO rank.
Data feed. These marketers promote the products via the data feed of a client.
Mobile applications. This category includes app developers of different types (shopping, finance, news, games).
Emails. These affiliates use the newsletter to promote the products via their email lists.
Brands of the same niche. These affiliates offer related products that don’t compete with the product of a client.
Sub-Affiliate networks. These marketers use a network of sub-publishers who promote the client’s product.