One important step for any Affiliate looking to join a program is to read the Affiliate-Merchant Terms of Service Agreement. Essentially, a Terms of Service Agreement, often abbreviated TOS, should lay out the terms for an Affiliate. It may (should) include all aspects of the relationship for the Affiliate and merchant in regards to promoting and being compensated for sales or leads. Commission, pay per click policy, use of trademarks, restricted activities, cookie life, mediation of conflicts and many other items should be included in order to prevent misunderstanding and abuse by any party.

The next paragraph is designed to highlight some important information for merchants regarding their Terms of Service. Every merchant should read it completely, Affiliates can skip this step.

Every merchant should take the time to ensure that their Terms of Service are complete. Include all of your terms and conditions.1.It is highly suggested that you include information about the commission or compensation as well as the guidelines you expect Affiliates to adhere to. Include restricted activities. If you have a question about what you should include, a consultation is advised. Affiliate Advocacy offers merchants a very low cost consultation in this area.2.Another important part of your terms of service agreement is that Affiliates should be able to read it. Make sure you check the formatting. The biggest problem with many terms of service is that they cannot be easily read. Long documents of 500-3000 words with no use of paragraphs, bullets or line spacing makes a document almost unreadable.  This problem is more common at some networks than others. The format that appears to a merchant in the merchant interface of a network may not be what an Affiliate sees. Most experienced Affiliates will want to read the terms of service to ensure that they understand your terms and conditions. If it is a struggle to read, some Affiliates will move on to another merchant.3.Try to use numbered bullets to separate key points and have each bullet appear on a new line.4.Use a readable font and skip using italics for the whole paragraph.3.If you update your terms of service, or copy and paste terms from another program, be sure to check the numbering. If you notice there are 2 3’s in this paragraph and the second 3 comes after the first 4 and if you read further you will see that there is no number 5 but we do have a number 6 which follows the second 3 after the first 4 and also included is paragraph H to further add to the confusion. 6.Try to avoid long run on sentences. If you read the last sentence, you will have noticed it was a tad long. If you use legalese, try to include a simplified explanation as well, this is for the benefit of both Affiliate and merchant. While your lawyer or accountant may prefer the more complex wording, it can lead to confusion for some. Providing a simplified version or explanation will ensure a merchant that the meaning is clear and the Affiliate will have no question as to the terms.7.A clear and concise Terms of Service Agreement will help to eliminate confusion. If all parties understand the terms, some bigger problems can be avoided.H. Include at least one piece of contact information for Affiliates to use in case there is a question regarding TOS.8. The Terms of Service not only needs to be complete, it needs to be readable.

 For anyone who struggled or failed to read the above, the following points were included:

  1. Provide complete Terms of Service Agreement.
  2. Ensure that the TOS is readable and properly formatted.
  3. To avoid confusion, use clear language and check for errors and missing information.
  4. Include contact information.

Over the weekend I was looking to fill a couple of spots on an established website. I found four merchants who had the needed products. I passed on two of them because their TOS was completely unreadable. Perhaps when I have more time I will go back and try to decipher the TOS but for now I pass. Many Affiliates will not join a program without reading the TOS. While it does not provide an abundance of protection for an Affiliate, it does (hopefully) lay out the terms under which we will/should be compensated and indicates any restrictions.

Merchants with incomplete and or unreadable TOS are leaving themselves vulnerable to problems. In order to be able to comply, Affiliates need a complete TOS and, need to be able to read it.

It is a good merchant practice to have a complete and legible Terms of Service and, it is a good Affiliate practice to read and comply to the TOS.

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The Truth About Relationships

by Melanie on June 9, 2010

One of the most common pieces of advice given  to affiliates is for them to develop relationships with merchants and program managers. New merchants and program managers are told to foster relationships with their affiliates. The main reason for this is that many believe that a strong relationship will result in preferential treatment, additional perks, extra assistance and of course, additional income. Relationships can be beneficial to both parties but everyone, especially those new to affiliate marketing, needs to give it proper weight.

My advice is to develop relationships but keep them in perspective and do not give them more value than they deserve. It is important to understand that when making business decisions, you need to make actual business decisions. Relationships can be valuable, but they will not be the sole reason for your success or failure.

My advice to Affiliates is to develop relationships with merchants but do not allow them to replace sound business practices.

  • Do not allow relationships prevent diversification. Always have a couple of back ups for every merchant and product. This will ensure that you will have continued income potential if a program closes or you are removed over an issue such as Internet sales tax. Never become totally reliant on on merchant or product regardless of the “close and valued” relationship.
  • Do not allow relationships to give you a false sense of security.  Merchants will make business decisions based on their needs; your needs or wants may not be a consideration. Case in point:  Even top producers can be removed from a program due to nexus issues. A relationship is not an insurance policy. Merchants will come and go.
  • Do not allow relationships prevent you from developing other relationships because of  loyalty. Make business decisions.
  • Do not allow a relationship to cause you to lower your standards. Hold all your merchants to a standard of performance. Do not turn a blind eye to merchants who operate in an unethical manner simply because you have a relationship.
  • Understand that some merchants may not be able to attend conferences and may communicate primarily via email. Everyone has a different definition of relationship. For me, I want accessible merchants/managers and tools/answers/commission bumps/responses to queries.
  • Don’t allow a relationship deter you from speaking your mind. If a relationship causes you to be afraid of speaking your mind, the relationship is not a sound one for you.

My advice to merchants is quite similar.

  • Do not allow your relationship with one affiliate prevent you from fostering relationships with affiliates. Just as affiliates should always be seeking new merchants, you should always be developing relationships with new affiliates.
  • Do not allow a relationship cause you to look the other way or turn a blind eye to unethical practices.
  • Never feel like you have enough relationships or become too dependent on any small group of affiliates. Affiliates will come and go.
  • Understand that not every affiliate is able to attend conferences  or speak via phone at a moment’s notice. Relationships do not only come from conferences.
  • Some affiliates will have a different definition of relationship and every affiliate has different needs. Many affiliates will never call you but they need to feel you are accessible.
  • Treat affiliates with respect and, value and  foster all relationships.

Relationships in business are good, just be sure to keep them in the proper perspective.  A relationship is not a guarantee or an insurance policy, it is just one aspect of business.

Relationships should complement your sound business practices, not replace them.

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Recruiting Affiliates Via Email

Many affiliate program managers will recruit Affiliates via email. Whether the email is sent  direct to an Affiliate through the Affiliate’s website contact information or it is sent via a Network’s mail system  there are a few simple guidelines that will improve effectiveness.
Over the past couple of weeks I have received in my email, nineteen invitations to join [...]

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LinkShare Symposium East 2010 Golden Link Award Nominees

This year, LinkShare Symposium East will be held on June 22 at Chelsea Piers, Pier 60.  Last week, LinkShare announced the finalist for their Golden Link Awards. There are eleven Golden Link Awards.  I am honored to be a finalist in the Performance Marketing’s Most Vocal Advocate category for my work on behalf of Affiliates and [...]

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Lessons from an Oil Leak

Last evening, during a  dinner meeting with a merchant regarding improving their Terms of Service contract for Affiliates, we were discussing the BP oil leak. As we spoke, I realized that there is quite a bit to be learned from the oil industry’s mishandling of the incident; these lessons could and should be applied to [...]

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End of April Legislative Updates

A few quick updates on some of  the still pending Internet sales tax legislation as well as a few comments on states with existing Internet sales tax laws and some general thoughts. While several other states are on the watch list, Connecticut, Florida, California and Tennessee are four states with more active pending legislation. Legislation is also [...]

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Connecticut Internet Sales Tax Headed for Vote

Connecticut is inching forward in their efforts to require out of state merchants to collect sales tax for online sales. HB 5481, the Connecticut Internet sales tax bill, has received a favorable report and has moved out of the Legislative Commissioner’s Office. It has been assigned a House Calendar Number (301) and it is File [...]

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Legislative Updates for April 8

In Connecticut, HB 5481 was filed with Legislative Commissioner’s Office (LCO) on March 26. The LCO checked it for constitutionality and then sent it to the Office of Fiscal Analysis who will determine any costs involved with implementation. Then, the Office of Legislative Research adds the plain English explanation of the bill . The bill then gets assigned a calendar [...]

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Coffee, Cookies and Newsletters

Over the past two weeks I have been looking into two separate issues involving two different merchants and their newsletters. In one case, I was contacted by the merchant and in the other I was contacted by an Affiliate.
In the first case, the Affiliate manager for the merchant emailed me with a question regarding their [...]

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Connecticut Finance Committee Passes Internet Sales Tax

Earlier today, the Joint Finance Committee voted in favor of the Internet sales tax bill HB 5481. The vote had heavy support and passed with a vote of 35-13. (There were 8 not voting.)
The next step is a final recheck of the bill (which should be quick as it is a repeat of last years [...]

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