Legal ICT

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Our services / Affiliate agreement

Affiliate marketing is a tool frequently used on the Internet to generate additional revenue.

The affiliate generates additional traffic to the website through special affiliate websites or pages. That traffic can be identified with a special affiliate link or code, on the basis of which the affiliate receives a fee. The most common models are as follows:

  • Cost per view (CPV): the affiliate is paid each time an advertisement is shown. Today, this model is no longer that attractive. This is because showing an advertisement says little about success.
  • Cost per mille (CPM): as under CPV, but expressed per one thousand visitors.
  • Cost per click (CPC): the affiliate is paid for every click on the relevant link, so every visitor generates income, regardless of whether they actually make a purchase or place an order. The disadvantage of this method is that the risk of fraud is high.
  • Cost per lead (CPL): The affiliate is paid if a visitor places an order for an information package or a newsletter for example. The difference with CPS is that a lead does not yet represent a paying client. This model is also known as Cost Per Action or CPA.
  • Cost per sale (CPS): the affiliate is paid if a generated lead makes a purchase.

Affiliate marketing can be rather lucrative, for both the affiliate and the business using affiliates. A good contract for an affiliate program is crucial, particularly with a view to fraud, which sadly is a common occurrence. Moreover the court deems the affiliate equal to the party for whom it conducts business. Spam and prohibited forms of promotion by the affiliate may result in imposing penalties on the ultimate provider.

Have Legal ICT draw up an affiliate agreement for you covering aspects, such as:

  • What model is used to determine how much remuneration the affiliate receives?
  • What constitutes as fraudulent conversion which denies the affiliate remuneration for a visitor, lead or client?
  • Can the affiliate use brand names and content from the other party?
  • Are there any restrictions on where and how the affiliate should carry out its promotional activities? Is advertising on adult sites or specifically on children’s sites permitted?
  • What is the duration of the affiliate agreement and when may parties cancel it?
  • Can penalties imposed on the ultimate provider, for spamming for instance, be recovered from the affiliate?

Instead of an affiliate agreement, a reseller agreement can be used in which the reseller trades under its own name. An affiliate agreement is also known as an agency agreement. That term is used mainly in a non-Internet context.

WOULD YOU LIKE MORE INFORMATION? 

Send an e-mail to: info@legalict.com or call us at: +32 (0)2 535 77 55. You can also use the form below: one of our legal advisors will get back to you very soon.

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