Affiliate program terms and conditions: what to include

Why your affiliate program needs written terms

Almost every dispute in an affiliate program is about something that was never written down: whether a coupon-site click counts, why a commission vanished after a refund, whether a partner can bid on your brand name. Terms settle those questions before anyone is out of pocket.

They also protect you legally. Affiliates promote your product in their own words, and regulators can hold the advertiser responsible when those words are misleading or undisclosed. Clear rules, plus evidence that you enforce them, are part of how you show you took reasonable care.

For a worked example, our own partner program agreement shows how several of these clauses can be worded in plain language.

Eligibility, commissions and hold periods

Start with who can join and on what basis. Say that you approve applications at your discretion, and list what can disqualify someone: sites with adult, hateful or illegal content, promotion methods you ban, or people under the age of majority where they live. If existing customers can join, say so; many SaaS programs welcome them because they are credible advocates.

The commission clause needs to be precise enough that a partner can check their own numbers:

• The rate, and what it applies to: the amount the customer actually paid, before or after tax, discounts and refunds.
• Which payments earn it: the first payment only, a set number of months, or the customer’s lifetime, and whether annual renewals, upgrades and reactivations count. Our guide to recurring affiliate commissions covers these cases.
• Any bonuses, such as a fixed amount per trial or per sign-up, and when they are earned.
• The hold period: how long a commission stays pending before it can be paid, commonly 30 days to match a refund window.
• That you may change rates, and whether changes apply to future referrals only.

State that commissions are earned only on referrals that follow the terms. That single sentence is what lets you reverse commissions from prohibited promotion without arguing about it later.

Attribution rules

Attribution decides which partner, if any, gets credit for a customer. Partners will read this clause more closely than any other, so make it concrete.

Declare that your tracking records decide attribution. Without that sentence, every blocked cookie becomes a negotiation. If you are willing to credit a missed referral when a partner can show evidence, describe the process and a deadline for claims. Our guide to attribution and cookie duration explains the trade-offs behind each choice.

Prohibited promotion methods

This section protects your brand, your ad budget and your conversion data. List the banned methods specifically; “no unethical promotion” is impossible to enforce.

Some bans can be softened rather than absolute. You might allow brand bidding with written approval, or allow coupon sites that use a code you issued. Whatever you permit, say who approves it and how.

Finish with the consequence: commissions from prohibited methods are not earned, can be reversed even after payout, and can lead to removal from the program. For detection, see our guide to affiliate fraud prevention.

Disclosure requirements

In the United States, the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 CFR Part 255, updated in 2023) expect a material connection between an endorser and an advertiser to be disclosed. An affiliate earning commission has a material connection. Other countries have similar rules; in the UK, for example, the CAP Code and the ASA’s guidance on influencer marketing cover affiliate content.

The FTC also expects advertisers to take reasonable steps to make sure their affiliates comply, which is why disclosure belongs in your terms rather than being left to the partner. A disclosure clause commonly requires that:

• The disclosure is clear and conspicuous: in plain words such as “I earn a commission if you buy through this link”, not a vague “partner” tag.
• It appears close to the recommendation or link, before the reader clicks, not only in a footer or an about page.
• It is made in each format the partner uses: spoken and on screen in video, in the post itself on social media, not only in a profile bio.
• Partners only describe experiences with your product they actually had, and do not make claims you could not substantiate yourself.

Add that you may review partners’ content and ask for corrections, and that repeated failure to disclose is grounds for removal. Then actually check a sample of partner content from time to time; the rule means little if nobody looks.

Payouts, clawbacks, termination and changes

The money clauses should let a partner predict exactly when and how they will be paid:

• Payout schedule and terms, such as monthly with payment within 15 or 30 days of the period closing.
• The minimum payout, and that balances below it carry over to the next period.
• Supported payout methods and the currency, plus who pays transfer and conversion fees.
• That partners must keep payout details accurate, and provide tax forms before payment where you require them.
• Clawbacks: a refund, chargeback or rule violation after payout is deducted from future payouts, and you may ask for repayment if there are none.

Termination should work in both directions. Partners can leave at any time; you can remove a partner, with or without cause, usually with notice for no-cause removals. Say what happens to earned money: commonly, commissions earned under the rules are still paid after termination, except where the removal was for fraud or a breach.

Finally, reserve the right to change the terms, say how you will notify partners (email plus the portal is typical), and give notice before negative changes take effect. Affiliatops shows each program’s hold period, minimum payout and cookie lifetime in the partner’s portal, which makes those numbers easy to keep in sync with the written terms.

Affiliate terms checklist

Use this list to check a draft before sending it for legal review:

• Who the agreement is between, and that partners are independent contractors, not employees or agents.
• Eligibility, the approval process and grounds for rejection.
• Commission rate, base amount, duration, bonuses and how rate changes apply.
• Hold period and when commissions become payable.
• Attribution: cookie duration, last-click or other rule, coupon codes, existing customers, whose records are final.
• Prohibited promotion methods, listed specifically, and any exceptions that need written approval.
• Disclosure requirements and your right to review content.
• Use of your brand, logos and marketing materials.
• Payout schedule, minimum, methods, currency, fees and tax forms.
• Refunds, chargebacks and clawbacks, before and after payout.
• Termination by either side and what happens to earned commissions.
• How the terms can change and how partners are notified.
• Limitation of liability, governing law and how disputes are resolved.

Frequently asked questions