Often looked down upon as a deceptive means for bloggers, entrepreneurs, and writers to make money online, affiliation contract agreements are not all bad. When written properly, an affiliation contract agreement can function as a vital tool to grow your business. Whether your goal is to start your own blog, open an e-commerce store, or take advantage of technology by implementing electronic signatures, it is important to understand how affiliations work. Affiliation contract agreements can be found all over the web. They are becoming more common in fields where collaboration across industries is crucial to success. On one hand, they are being used to stave off potential lawsuits and protect the investor. On the other hand, they offer a way for entrepreneurs to profit from their blog by linking it to a larger website. As you explore the digital world of business through Culture Goal Online, you will discover all kinds of affiliation contract agreements. In this article, you will discover the basics of an affiliation contract agreement, including some of the words most commonly used in them. You will also discover the importance of not entering a verbal agreement to be affiliated with companies. Before you agree to any terms, make sure you understand this legal document and how it will impact you as a small business owner.
In general terms, an acquisition contract agreement is a contract between two parties in which the first party (the beneficiary) benefits monetarily from the actions of the second party (the facilitator). A prime example of this type of relationship is a blogger who posts articles on a website and includes affiliate links. When a reader is interested in the product(s) being advertised and clicks on the link to the supplier’s website, the blog owner is paid a commission for any sale via the link. When drafting a contract that covers the aforementioned affiliation link, the following language is often used: Affiliate agrees to receive a commission fee (“commission”) from the Supplier on all Affiliates qualified Sales resulting from the actions of Affiliate. Supplier shall pay to Affiliate a commission of 10% of the total purchase price of the Products purchased by a qualified Referral during the Referral’s first 30 days of registration with the Supplier.
There are three industries that regularly use affiliation contract agreements: health and fitness, technology, and sports – all of which are explored on Culture Goal Online. With the rise in wearable technology, more athletes are turning to wearable technology to improve their performance. Although this technology is relatively new, companies using affiliation contract agreements to promote their products are already having success. Affiliation contract agreements are not exclusive to the health and fitness industry. In recent years, more website owners have made it a point to collaborate with other companies. If done correctly, these agreements offer all parties an easy way to earn money, while working towards shared goals.
There are a number of legal terms commonly found in this type of agreement. Even if you are not an attorney, understanding these terms can help you get the most out of the contract: When signing any type of agreement, you are exposing yourself to risk. To mitigate that risk, business owners and bloggers should read the contract in full BEFORE they sign any documents. They should also consult with a lawyer if they do not fully understand the terms set forth in the contract. Many small business owners, especially those who own a blog or currently write for an online publication, make the mistake of thinking contracts are unnecessary. Often, the actions of the beneficiaries are not binding. For example, Suppliers may fail to reward the affiliate with the commissions set forth in the contract. Although you can take action on your own by filing a lawsuit, you should enlist the help of an attorney. In doing so, you are sending the message that you treat business like business. Lawyers also know how to navigate the court system and they are familiar with the elements of a legally binding contract. With their assistance, you will realize an outcome quickly.
Entrepreneurs and bloggers may be surprised by the potential trappings of an affiliation contract agreement. By creating legally binding contracts, you make it easy to file a lawsuit when necessary. However, it is important to know that lawyers are not cheap to hire. Having a lawyer look over the contract before you sign may prevent you from getting taken advantage of by an unscrupulous Supplier. Marketing experts have long recognized the benefits of affiliate marketing. But they have not completely unlocked the vast potential behind affiliate marketing. When funding is tight, affiliate contracts represent a great opportunity to build brand awareness, establish yourself as an authority in your field, and to make a little money on the side. If you agree to an affiliate arrangement, we wish you well.
For more information on contracts and legal agreements, you can visit Cornell Law School’s Legal Information Institute.
