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Like any other type of contract or agreement, it's important to put this affiliate agreement in writing. If you are reviewing an affiliate agreement, you will see some other standard contract terminology.

Three standard clauses you may see are:. This article includes a general overview of types of affiliates and agreements.

Every business situation is unique, so be sure to get help from an attorney in preparing any affiliate agreement. There may be "gotcha" clauses or language that you may not have seen or included.

For example, if you are the affiliate, check to see what percentage of ownership, if any, the other company has in your business. The Balance Small Business uses cookies to provide you with a great user experience.

By using The Balance Small Business, you accept our. Full Bio Follow Linkedin. Follow Twitter. She has written for The Balance on U.

Read The Balance's editorial policies. Examples of Affiliates Amazon affiliates are called "Amazon Associates. In broadcasting, local TV stations are affiliates of a national network.

These local stations are locally owned, but they use network content and advertising. What is Affiliate Marketing?

An affiliate agreement contract should include answers to the following questions:. What is the term of the affiliate agreement? Under what circumstances can either party terminate the agreement?

What is the definition of "affiliate" in this situation? What is the relationship between the parties? Of the offering host?

What types of promotional materials and advertising content is available to the affiliate? What are the restrictions on the affiliate's use of promotional materials?

What licenses are required of both the affiliate and the host business? Who owns the licenses? For example, a broadcast TV station must have a specific type of license, and keep that license up to date.

Test Your Knowledge - and learn some interesting things along the way. Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

And who put it there, anyway? Literally How to use a word that literally drives some people nuts. Is Singular 'They' a Better Choice?

Can you spell these 10 commonly misspelled words? Listen to the words and spell through all three levels. Login or Register.

Save Word. Log In. Keep scrolling for more. Synonyms for affiliate Synonyms: Noun branch , cell , chapter , council , local Visit the Thesaurus for More.

Examples of affiliate in a Sentence Verb Their group does not affiliate itself with any political party. Recent Examples on the Web: Verb Canonical research in social psychology showed that fear and anxiety lead people to affiliate with those around them.

First Known Use of affiliate Verb , in the meaning defined at transitive sense 1a Noun , in the meaning defined above. Learn More about affiliate.

Time Traveler for affiliate The first known use of affiliate was in See more words from the same year. Dictionary Entries near affiliate affidavy affied affies affiliate affiliated affiliation affiliation order See More Nearby Entries.

More Definitions for affiliate.

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That she was about to affiliate herself with this house appealed to Fanny Brandeis's sense of comedy.

Should she be shut out of all these and affiliate with the wilderness of the New World? The Egyptians are supposed to affiliate remotely with the Semitic family.

Are you learning new vocabulary? Or do you just have an interest in words? Either way, this quiz is for you. Words nearby affiliate affianced , affiant , affiche , afficionado , affidavit , affiliate , affiliated , affiliation , affiliation order , affiliation proceedings , affiliative drive.

An affiliate is a separate company, an independent contractor. While another a company may affiliate through ownership, that ownership doesn't mean total control.

It's simply a way of marketing a product or service by getting others affiliates to encourage their own customers to buy what you are selling.

On the affiliate side, it's selling an existing product or service as an affiliate of someone else.

Affiliate agreements can be entered into by any type of business, from sole proprietor to corporation.

Affiliating with another company is a good way to promote your business and make more money by joining with someone who has a proven track record and a larger customer base.

An affiliate agreement is a contract between the two parties: the host or offering business and the affiliate. Like any other type of contract or agreement, it's important to put this affiliate agreement in writing.

If you are reviewing an affiliate agreement, you will see some other standard contract terminology.

Three standard clauses you may see are:. This article includes a general overview of types of affiliates and agreements. Every business situation is unique, so be sure to get help from an attorney in preparing any affiliate agreement.

There may be "gotcha" clauses or language that you may not have seen or included. For example, if you are the affiliate, check to see what percentage of ownership, if any, the other company has in your business.

The Balance Small Business uses cookies to provide you with a great user experience. By using The Balance Small Business, you accept our.

Full Bio Follow Linkedin. Follow Twitter. She has written for The Balance on U. In some cases, an affiliate may be owned by a third company.

In e-commerce , a company that sells other merchants' products on its website is an affiliate company. Merchandise is ordered from the company's website, but the sale is transacted at the principal's site.

Amazon and eBay are examples of e-commerce affiliates. A multinational company may set up affiliates to break into international markets while protecting the parent company's name in case the affiliate fails or the parent company is not viewed favorably due to its foreign origin.

Understanding the differences between affiliates and other company arrangements is important in covering debts and other legal obligations.

Affiliates can be found all around the business world. In the corporate securities and capital markets , executive officers, directors, large stockholders, subsidiaries, parent entities, and sister companies are affiliates of other companies.

Two entities may be affiliates if one owns less than a majority of voting stock in the other. Affiliation is defined in finance in a loan agreement as an entity other than a subsidiary directly or indirectly controlling, being controlled by or under common control with an entity.

In commerce, two parties are affiliated if either can control the other, or if a third party controls both.

Affiliates have more legal requirements and prohibitions than other company arrangements to safeguard against insider trading.

For banking, affiliate banks are popular for underwriting securities and entering foreign markets.

Unlike an affiliate, a subsidiary's majority shareholder is the parent company. The parent also has control over the subsidiary and is allowed to make important decisions such as the hiring and firing of executives, and the appointment of directors on the board.

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