Key takeaways
- Good terms protect your brand and set clear expectations — they prevent disputes before they happen.
- Cover commission rules, what counts as a valid conversion, and the attribution/cookie policy.
- Spell out prohibited promotion methods: trademark bidding, coupon spam, self-referrals, and misleading claims.
- State payout terms clearly: threshold, cadence, currency, holding period, and tax requirements.
- Reserve the right to reverse fraudulent commissions and terminate partners who break the rules.
Affiliate terms and conditions aren't legal boilerplate to bury — they're the rulebook that keeps a program fair, protects your brand, and prevents the disputes that poison partner relationships. Clear terms mean affiliates know exactly how they earn, what's off-limits, and when they get paid. Here's what to include. (This is practical guidance, not legal advice — have counsel review your final terms.)
What should affiliate terms and conditions cover?
Your terms should cover five areas: how commission is earned and calculated, what counts as a valid conversion, how partners may and may not promote you, when and how they get paid, and the grounds for reversing commissions or terminating the relationship. Address all five and most disputes never arise.
Commission rules and valid conversions
- The commission rate and model (percentage, flat, recurring) and any tiers.
- What counts as a qualifying conversion — and what doesn't (e.g. refunded, cancelled, or duplicate orders).
- The clearing/holding period before a commission becomes payable.
- How attribution works, including the cookie window and last-click vs. other models.
Prohibited promotion methods
Be explicit about what partners cannot do, because vague terms invite the behaviour you most want to avoid:
- Bidding on your brand or trademark terms in paid search.
- Self-referrals and incentivized clicks that don't represent genuine intent.
- Coupon and deal-site spam that hijacks credit for sales you'd have made anyway, where you prohibit it.
- Misleading claims, spam email, or any promotion that misrepresents your product.
- Promoting on platforms or in contexts that violate your brand guidelines.
Encode the rules, don't just write them
Terms that only live in a PDF are hard to enforce. Pair them with automated fraud rules — flagging self-referrals, suspicious velocity, or disallowed traffic — so violations are caught at the data level, not discovered months later in a manual audit. Afflio's fraud rules let you enforce key terms automatically.
Payout terms
State the money rules plainly: the minimum payout threshold, the payout schedule, the currency and how FX is handled, the holding period before payout, and any tax forms required before the first payment. Ambiguity here generates the most support tickets, so make it unmistakable.
Reversals and termination
Reserve the right to reverse commissions on fraudulent, refunded, or invalid conversions, and to terminate partners who break the rules. Define what happens to a pending balance on termination for cause. These clauses are your protection when something goes wrong.
What disclosure and compliance clauses should you add?
Require affiliates to disclose their relationship with you, because most jurisdictions legally obligate promoters to tell consumers when a link is paid. A clear disclosure clause protects both sides: it keeps your partners compliant with advertising regulations and protects your brand from the fallout of deceptive promotion.
- Mandate clear, conspicuous disclosure of the affiliate relationship wherever partners promote you.
- Require partners to keep claims accurate and consistent with your approved messaging.
- Set rules for how your brand assets, name, and trademarks may be used.
- State which jurisdiction's law governs the agreement and how changes to the terms are communicated.
The best terms read like a fair contract, not a trap. Clear, mutual rules attract serious partners and quietly repel the ones looking to game you.
Do I legally need affiliate terms and conditions?
While requirements vary by jurisdiction, you should always have written terms — they define the commercial relationship, set enforceable rules, and protect you in disputes. Many regions also require affiliates to disclose their relationship to consumers, which your terms should mandate. Have a lawyer review your final document.
Should I prohibit affiliates from bidding on my brand keywords?
Most programs do. Letting affiliates bid on your trademark in paid search means paying commission on traffic that was already searching for you. State the rule clearly in your terms and enforce it with monitoring.
Can I reverse a commission after it's been earned?
Yes, if your terms allow it. You should reserve the right to reverse commissions on refunded, cancelled, duplicate, or fraudulent conversions. This is why commissions clear a holding window and pass an approval step before payout.