How closely do you read your affiliate agreements?

too much legalees?

[hannamyluv]

I was wondering how many of you actually read the affiliate agreements?

Would you find it helpful if the merchant had the formal legal agreement with a side by side plain engish one?

Would this make you more comfortable with the merchant or more suspicious?

[coconubuck]

I think most people dont read their agreements very closely and get confused on certain points that they just skimmed over. Having something simple is good, but I deal with this kind of thing on a daily basis, and you DEFINITELY want to make sure your bases are covered legally.

I would recommend that you make it very easy for the would be affiliate to ask questions or get clarification from you on any issues they have questions about. Chances are, you will update your agreement as you move forward and find parts that people have complaints about. The important thing is that you are covered and the agreement looks professional.

[mfishy]

I will admit, even if we are producing heavy revenue for a program, we barley look at the agreement. All agreements basically say the same thing - "We can hose you at any time". You have to have a bit of faith that the merchant takes their program seriously, IMO.

[nativenewyorker]

mfishy said:

All agreements basically say the same thing - "We can hose you at any time". You have to have a bit of faith that the merchant takes their program seriously, IMO.

You are assuming that your potential risk is limited to forfeiting your earnings from that merchant. I remember reading an affiliate agreement with an online casino that left the affiliate with a significant degree of risk.

Specifically, the contract stated that the affiliate was responsible for covering their percentage of all net losses to the casino, including player winnings. If the affiliate's account had a negative balance, the affiliate was legally responisble for bringing the balance to zero by making a payment to the casino. In an ideal situation, the casino would always make money and so would the affiliate. Unfortunately, this is not the case. Statistically, casinos make money overall with earnings outweighing losses. However, those totals are comprised of many different results, wins, losses and draws.

Imagine the scenario of a casino player depositing $200. For simplicity sake, we will assume that the affiliate earns 50% of the profits, there is no overhead and that there are no cash bonuses. If the player loses the entire $200, the casino nets $200 in revenue with $100 going to the casino and the other $100 going to the affiliate. On the other hand, if the player hits a slots jackpot for $100,000, the net loss to the casino is $99,800. The casino absorbs their share of the loss for $49,900 and the affiliate takes a hit for the other $49,900. Looking at this scenario, it is my opinion that there is too much risk for a potentially small reward. Taking such risks almost appears to be a certain path to financial ruin.

Ted

[Teshka]

Don't read 'em. Just wait for them to be around long enough for copious people to have ranted about them on WW and aff boards. ;P

Seriously, don't know if people need a translated contract so much as a good FAQ.

[coconubuck]

I agree with Teshka. Make it easy to understand and ask questions or at least have a FAQ. I like programs that allow you to contact an actual human being to ask questions.

[ThomasB]

Just read them if I want to have a special arrangement. But for the most I just click "accept" and trust them because other people would have complained before.