Glossary · Fraud & Compliance

What is an Affiliate Agreement?

Definition

An affiliate agreement is the contract between a brand and an affiliate that sets commissions, payment terms, permitted traffic, compliance and termination.

An affiliate agreement is the contract between a brand (advertiser) and an affiliate (publisher) that defines how the partnership works: what the affiliate is paid for and how much, when payment is made, which promotion methods are allowed, and what happens when rules are broken. Most programs use standard terms accepted at sign-up, with individual deals added as amendments.

Key clauses

Clause What it covers
Commission structure CPA, RevShare or hybrid terms, qualification baselines, negative carryover
Tracking and attribution Cookie duration, attribution model, whose records prevail
Payment terms Hold period, net terms, minimum payout, currency, methods
Prohibited actions Brand bidding, cookie stuffing, self-referral, incentivized or spam traffic
Compliance Ad disclosures, advertising and responsible-gambling rules, data protection
Reversals and clawbacks Valid reasons and time limits
Termination Notice period, treatment of earned and future commissions

Example

Example prohibited-actions clause: "Affiliate shall not use pop-ups, hidden iframes or any method that sets a tracking cookie without a user's click. Commissions generated in breach of this clause will be reversed, and Brand may terminate this Agreement immediately."

Why it matters

The agreement is what makes fraud rules enforceable: without written terms, reversing commissions for brand bidding or cookie stuffing turns into a negotiation. It also passes regulatory duties down the chain. In the US, the FTC expects affiliates to clearly disclose their relationship with the brand and expects advertisers to have reasonable programs to train and monitor their affiliate networks.

For affiliates, the termination clause deserves the closest reading, because it decides whether lifetime RevShare continues after either side ends the relationship.

MassPartner includes AI-assisted contract generation with prohibited-actions clauses, e-signatures and version history. A full sample is in the affiliate agreement template.

Related: brand bidding, commission reversal, net terms, cookie stuffing.

  • Brand Bidding

    Brand bidding is when an affiliate buys paid-search ads on a brand's name or trademarked keywords to capture searchers already looking for that brand.

  • Commission Reversal

    A commission reversal cancels or deducts an affiliate commission after the underlying sale or action is refunded, charged back, invalid or fraudulent.

  • Net Terms

    Net terms define how many days after a billing period closes a brand pays approved commissions; net 30 means payment within 30 days.

  • Cookie Stuffing

    Cookie stuffing is affiliate fraud in which tracking cookies are set in a user's browser without a real click, so the fraudster is credited for later sales.

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