Key takeaways
- Good terms protect your brand and set clear expectations — they head off disputes before they start.
- Cover commission rules, what counts as a valid conversion, and your attribution/cookie policy.
- Spell out what's off-limits: trademark bidding, coupon spam, self-referrals, and misleading claims.
- State payout terms plainly: threshold, cadence, currency, holding period, and tax requirements.
- Reserve the right to reverse fraudulent commissions and cut 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 heads off 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?
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 ending the relationship. Nail all five and most disputes never arise.
Commission rules and valid conversions
- The commission rate and model (percentage, flat, recurring), plus any tiers.
- What counts as a qualifying conversion — and what doesn't (refunded, cancelled, or duplicate orders).
- The clearing/holding period before a commission turns payable.
- How attribution works — the cookie window, and last-click versus other models.
Prohibited promotion methods
Spell out what partners can't do. Vague terms invite the exact behaviour you're trying to avoid:
- Bidding on your brand or trademark keywords in paid search.
- Self-referrals and incentivized clicks that don't reflect genuine intent.
- Coupon and deal-site spam that hijacks credit for sales you'd have made anyway, where you ban it.
- Misleading claims, spam email, or any promotion that lies about your product.
- Promoting on platforms or in contexts that break 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 schedule, the currency and how FX is handled, the holding period before payout, and any tax forms required before the first payment. Ambiguity here spawns 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 cut partners who break the rules. Spell out 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 — 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 shields your brand from the fallout of deceptive promotion.
- Mandate clear, conspicuous disclosure of the affiliate relationship everywhere partners promote you.
- Require partners to keep claims accurate and in line with your approved messaging.
- Set rules for how your brand assets, name, and trademarks can be used.
- Name the jurisdiction whose law governs the agreement, and how you'll communicate changes to the terms.
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?+
Requirements vary by jurisdiction, but 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. Let affiliates bid on your trademark in paid search and you're 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. Reserve the right to reverse commissions on refunded, cancelled, duplicate, or fraudulent conversions. It's why commissions clear a holding window and pass an approval step before payout.