Affiliate Agreement Template for South Africa

An Affiliate Agreement sets out the terms when one company (the affiliate) promotes or sells another company's products or services for a commission. In South Africa, these contracts are particularly common in e-commerce, financial services, and digital marketing sectors, falling under the Consumer Protection Act and Electronic Communications Act.

The agreement spells out essential details like commission structures, payment terms, marketing guidelines, and intellectual property rights. It protects both parties by clarifying responsibilities, performance standards, and dispute resolution processes - especially important under South African contract law where clear terms help ensure enforceability.

Use an Affiliate Agreement when partnering with other businesses to promote or sell your products through their networks. This becomes essential for e-commerce platforms, digital marketers, and financial service providers in South Africa looking to expand their reach through affiliate marketing programs.

The agreement proves particularly valuable when scaling your distribution channels, as it establishes clear commission structures and protects your brand. Companies need this document before launching affiliate programs, especially when handling sensitive customer data or when marketing regulated products under the Financial Advisory and Intermediary Services Act.

• Affiliate Marketing Contract: The standard comprehensive agreement covering commission structures, marketing rules, and payment terms. Can be customized for different sectors like e-commerce, financial services, or digital marketing, with specific clauses adjusted for performance metrics, compliance requirements under South African consumer protection laws, and industry-specific promotional guidelines.

• Affiliate Partners: Individuals or companies that promote products or services, often through websites, social media, or email marketing campaigns in exchange for commission.
• Merchant Companies: Businesses offering the products or services, responsible for setting commission rates, providing marketing materials, and ensuring compliance with South African consumer protection laws.
• Legal Teams: In-house counsel or external lawyers who draft and review agreements to ensure compliance with South African advertising regulations and e-commerce laws.
• Compliance Officers: Professionals who monitor adherence to marketing guidelines, data protection requirements, and financial services regulations.

• Basic Details: Gather full legal names, registration numbers, and contact details of both the merchant and affiliate partners.
• Commission Structure: Define exact commission rates, payment terms, tracking methods, and minimum payout thresholds.
• Marketing Guidelines: Document allowed promotional methods, restricted practices, and brand usage rules under South African advertising laws.
• Technical Requirements: Specify tracking codes, reporting systems, and data handling procedures compliant with POPI Act.
• Performance Metrics: Outline clear success indicators, conversion definitions, and quality control measures.

• Party Details: Full legal names, registration numbers, and physical addresses of both merchant and affiliate.
• Commission Terms: Clear payment structures, calculation methods, and payout schedules aligned with South African banking regulations.
• Marketing Rules: Specific promotional guidelines compliant with the Consumer Protection Act and Electronic Communications Act.
• Data Protection: POPI Act compliance measures for handling customer information.
• Termination Clauses: Conditions for ending the agreement, notice periods, and post-termination obligations.
• Dispute Resolution: South African jurisdiction choice and arbitration procedures.

While both documents govern business relationships, an Affiliate Agreement differs significantly from an Agency Agreement. The key distinctions lie in their scope, legal obligations, and operational framework within South African law.

• Legal Authority: Affiliate partners promote products without the power to legally bind the merchant, while agents can enter into contracts on behalf of their principal.
• Liability Structure: Affiliates bear limited responsibility, mainly for marketing compliance, whereas agents have broader fiduciary duties under South African common law.
• Payment Model: Affiliates typically earn commission only on successful sales, while agents often receive retainers or fixed fees plus commission.
• Regulatory Framework: Affiliate relationships primarily fall under marketing and e-commerce laws, while agency agreements must comply with stricter financial services and representation regulations.