An agreement is signed between two parties that are interested in forming a relationship. The relationship can with either be short term or long term. Short term can be less than a year and long term usually is more than a year. Such distinction is necessary before drafting an agreement because such ambiguities can result in stringent consequences for both of the parties involved. Affiliate program agreement takes place between a party that is interested in offering its services to any other party. The party offering its services to the other one is called as affiliate of the other. Affiliate agrees to offer its services in return of commission. Such amount of commission is set and decided beforehand to avoid any confusion. Affiliate program agreements can be of different kinds whereby affiliate can connect with the company in various ways. Usually websites are promoted in this way. Whereby affiliates put a link on their website of the company’s website. In this way all visitors of affiliate website are redirected to the company’s website. This tactic is considered useful in marketing the products and services offered by the company to a larger audience. As more and more sales are generated, more revenue is collected by the company and hence it becomes easier for the company to pay commission to the affiliate. Both parties enjoy the fruit of their efforts as a win-win situation is created. But a written agreement is something that guides the framework of relationship between two parties. Because verbal agreements are done in air and can be vanished without leaving any evidence. So a properly written agreement is mandatory for any kind of business growth and success.
Nowadays businesses adopt number of techniques to market their products and spur their sales. Some companies enter into international operations by expanding geographically and some while operating domestically widen their reach. This happens by marketing their product in various markets and environments. And affiliate program is also considered as one of the source to achieve such competitive edge over other competitors. More you have affiliates, greater is your outreach to wider audiences. This not only gives the company an edge over its competitors but also develops a trust among its customers of its operations. Companies can use wide variety of tools simultaneously to achieve high growth rate. And affiliates provide the companies with an opportunity to expand into larger market with bearing only minimal cost. The commission is paid out of the sales generated through the use of affiliate’s website. And as no cost is incurred in such arrangement so giving out commission can be perceived as the only cost during the whole process. Internet is crowded with the sample affiliate program agreements. Assistance can be taken from such samples while drafting the agreement. The use of generic terms and conditions in such samples can be customized as per requirements of the parties. Legal assistance is also mandatory as that can be helpful in avoiding ambiguities down the road.
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