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What is Affiliate Agreement?

Affiliate Agreement refers to a contract between two parties, where one party agrees to promote the products or services of another in exchange for commission or other forms of payment. This type of agreement has become increasingly popular among businesses looking to expand their reach and boost their sales through affiliate marketing.

In an Affiliate Agreement, the company who offers the product or service is known as the "merchant," while the party that promotes it is called an "affiliate." The affiliate receives a unique link or code that directs customers to the merchant's website, and if a sale is made using that link, the affiliate earns a commission based on a percentage of the sale price.

The terms outlined in an Affiliate Agreement may include conditions for payment, duration of promotion periods, guidelines for promotional content and materials, restrictions on certain types of promotions such as spamming or trademark infringement, and termination clauses. It's important for both parties to have a clear understanding of these terms before entering into an agreement.