Writing an Effective Affiliate Program Agreement

I didn’t think a “real” agreement mattered much, figured a simple welcome email and a Google Doc with links would do the trick.

Spoiler alert: it didn’t.

A few months in, I had affiliates using shady discount sites, spamming links in comment sections, and even misrepresenting our products. And guess what? I couldn’t really do anything about it because I hadn’t clearly laid out the rules. That’s when I realized: if you’re gonna have affiliates repping your brand, you need an agreement that sets expectations on both sides.

Why You Need a Solid Affiliate Agreement? (Even for a Tiny Program)

Think of it like setting house rules. You’re handing people the keys to your brand — your name, your products, your reputation. If they mess it up, it reflects on you.

A clear, written affiliate agreement helps:

• Define who qualifies and what they’re allowed to promote.

• Protect you from false advertising or unethical behavior.

• Set clear commission structures, payment terms, and cookie durations.

• Limit liability if an affiliate misuses your brand.

Even if you’re just starting out with a few friends or creators — do it right from day one. Trust me, future you will thank you.

What to Include in Your Affiliate Program Agreement?

Here’s what I’ve learned to put in every affiliate agreement now — learned through trial, error, and one very stressful email chain with a former affiliate:

1. Affiliate Eligibility

Make it crystal clear who can join. Do they need a blog, social following, or approval first? Are coupon or cashback sites allowed? If you’re unsure, you can get inspiration from these 6 best practices for managing affiliates to help guide your onboarding process.

2. Promotional Guidelines

List what’s acceptable — and what’s not. Can they run ads using your brand name? Use your images? Send emails to their list? Lay it all out.

3. Commission Structure

Be specific. Is it 10% per sale? One-time or recurring? Any exclusions (like discounted products or shipping fees)? Also, say when and how payments are made — monthly via PayPal, for example. If you’re building from scratch, it might help to read about choosing the right commission structure.

4. Tracking & Cookies

Mention how sales are tracked and how long the cookies last. A lot of affiliates care about this. Something like “Cookies last 30 days from the user’s first click.”

5. Termination Clause

It’s awkward, but you gotta have one. State that you can remove affiliates at any time for violating terms. It gives you a clean exit if things go sideways.

6. Legal Disclosures

This one’s big. Require that affiliates comply with FTC guidelines and disclose that they may earn a commission. Keeps things above board.

7. Brand Use & Restrictions

If you don’t want your brand showing up in weird places or alongside sketchy content, add that in. You can also restrict use of your logo, exact wording, or positioning. Check out avoiding common affiliate program mistakes to make sure your agreement helps prevent future headaches.

Keep It Friendly, But Firm

I’ve found that you don’t have to sound like a lawyer (unless you are one). Just be clear, respectful, and consistent. You can use plain language and still protect your brand.

One thing I like to do? Send a simple onboarding doc with the highlights — and link out to the full agreement. That way affiliates don’t feel overwhelmed, but they know the rules are in place.

And yep, you can totally use templates to get started — just make sure you tweak them to fit your business. What works for a SaaS company won’t work the same for a skincare brand.

Final Tip: Review It Every 6 Months

Things change. Your product lineup evolves, your audience shifts, maybe your commission structure grows. Make it a habit to revisit your agreement twice a year. I missed this once and ended up paying commissions on a product we had discontinued months before. Oops.