Affiliate Marketing Contract Template for Indonesia

This document is an Affiliate Marketing Contract governed by Indonesian law, specifically designed to establish and regulate the relationship between a company/merchant and their affiliate marketers. It complies with Indonesian e-commerce regulations, including Law No. 11 of 2008 on Electronic Information and Transactions and related data protection requirements. The contract outlines commission structures, marketing guidelines, compliance requirements, and operational procedures while ensuring adherence to local advertising and consumer protection laws.

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What is a Affiliate Marketing Contract?

The Affiliate Marketing Contract is essential for businesses operating in Indonesia's growing digital marketplace. This agreement is typically used when a company wishes to expand its marketing reach through third-party affiliates who promote products or services in exchange for commission-based compensation. The document must comply with Indonesian regulations, particularly the ITE Law and e-commerce regulations, while addressing critical aspects such as data protection, online advertising rules, and consumer protection requirements. It includes detailed provisions for commission structures, performance tracking, payment terms, and compliance requirements, making it suitable for both domestic and international businesses operating in Indonesia's digital economy.

What sections should be included in a Affiliate Marketing Contract?

1. Parties: Identification of the merchant/company and the affiliate marketer, including complete legal names and addresses

2. Background: Context of the agreement, brief description of the business relationship and purpose

3. Definitions: Key terms used throughout the agreement including 'Qualified Sales', 'Commission', 'Tracking Links', 'Cookies', etc.

4. Appointment and Scope: Terms of affiliate appointment and scope of marketing activities permitted

5. Commission Structure: Details of commission rates, calculation methods, and payment terms

6. Payment Terms: Payment schedule, currency, method of payment, and any minimum payout thresholds

7. Affiliate Obligations: Specific responsibilities and requirements for the affiliate, including compliance with laws and marketing guidelines

8. Company Obligations: Company's responsibilities including providing marketing materials, tracking sales, and processing payments

9. Compliance Requirements: Compliance with Indonesian e-commerce laws, advertising regulations, and data protection requirements

10. Intellectual Property: Usage rights and restrictions regarding trademarks, logos, and marketing materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Duration of agreement and circumstances for termination

13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures

What sections are optional to include in a Affiliate Marketing Contract?

1. Non-Compete: Restrictions on promoting competing products/services, used when exclusivity is required

2. Performance Metrics: Specific KPIs and performance requirements, included when minimum performance standards are needed

3. Territory Restrictions: Geographic limitations on marketing activities, used when territorial exclusivity is granted

4. Training and Support: Details of training and support provided by the company, included for complex products or services

5. Multi-Tier Commission Structure: Details of multi-level commission structures, used in more complex affiliate programs

6. Special Promotions: Framework for special promotional campaigns, included when regular promotional activities are planned

7. Data Protection Agreement: Detailed data protection requirements, included when significant personal data processing is involved

What schedules should be included in a Affiliate Marketing Contract?

1. Schedule A - Commission Rates: Detailed breakdown of commission rates for different products/services

2. Schedule B - Approved Marketing Materials: List of pre-approved marketing materials and guidelines for usage

3. Schedule C - Technical Requirements: Technical specifications for tracking links, cookies, and integration requirements

4. Schedule D - Prohibited Marketing Practices: Specific list of prohibited marketing activities and techniques

5. Schedule E - Reporting Format: Templates and requirements for performance reporting

6. Appendix 1 - Brand Guidelines: Detailed guidelines for brand usage and marketing content

7. Appendix 2 - Compliance Checklist: Checklist of regulatory requirements and compliance measures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Affiliate Agreement

Sector

Marketing

Cost

Free to use

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Affiliate Marketing Contract

An Indonesian law-governed Affiliate Marketing Contract establishing terms between merchants and affiliate marketers, ensuring compliance with local e-commerce regulations.

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