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An Affiliate Agreement sets out the terms between a company and its marketing partners who promote products or services in exchange for commissions. Under Indonesian law, these contracts spell out how affiliates can market items, what compensation they'll receive, and their obligations to follow local advertising regulations and consumer protection rules.

Businesses use these agreements to build their sales networks while protecting their brand and intellectual property. The contract must comply with Indonesia's Electronic Information and Transactions Law, especially regarding online marketing disclosures and data privacy. Key elements include payment terms, performance metrics, and clear guidelines on permitted marketing methods.

Use an Affiliate Agreement when launching marketing partnerships to sell products or services through third-party promoters in Indonesia. This contract becomes essential before letting affiliates advertise your offerings, especially for e-commerce platforms, digital service providers, and retail businesses expanding their reach through influencer marketing.

The agreement needs signing before any affiliate starts promoting your brand online or offline. It's particularly important when working with multiple marketing partners, dealing with commission-based compensation, or when your products require specific promotional guidelines to comply with Indonesian advertising and consumer protection laws.

• Affiliate Marketing Contract: Standard agreement for digital marketing partnerships, typically used by e-commerce companies. Can be customized with performance-based commission structures, specific promotional guidelines, and varying levels of marketing rights. Common variations include exclusive vs. non-exclusive rights, fixed-rate vs. tiered commission models, and industry-specific compliance requirements under Indonesian digital commerce laws.

• E-commerce Companies: Act as primary agreement creators, setting commission rates and promotional guidelines for their affiliate programs. They maintain control over product pricing and marketing standards.
• Marketing Affiliates: Individual promoters or companies who sign up to advertise products in exchange for sales commissions. This includes social media influencers, bloggers, and content creators.
• Legal Counsel: Draft and review agreements to ensure compliance with Indonesian advertising laws and e-commerce regulations.
• Digital Marketing Agencies: Often manage multiple affiliate relationships and handle performance tracking between companies and their promoters.

• Commission Structure: Define exact payment rates, tracking methods, and payout schedules that align with your budget and Indonesian tax regulations.
• Marketing Guidelines: List approved promotional methods, restricted practices, and required disclosures under Indonesian advertising laws.
• Performance Metrics: Establish clear tracking systems for sales attribution and commission calculations.
• Brand Standards: Document specific rules about logo usage, promotional content, and acceptable marketing channels.
• Legal Requirements: Include necessary compliance elements for e-commerce and digital marketing under Indonesian law. Our platform ensures all these elements are properly incorporated into your agreement.

• Parties and Scope: Full legal names, business registration details, and clear description of affiliate services.
• Commission Terms: Detailed payment structure, calculation methods, and payout schedules compliant with Indonesian tax laws.
• Marketing Guidelines: Specific promotional rules, content restrictions, and required disclosures under Indonesian advertising regulations.
• Data Protection: Privacy compliance measures aligned with Electronic Information and Transactions Law.
• Termination Rights: Clear conditions for ending the agreement and post-termination obligations.
• Dispute Re����ֱ��: Jurisdiction choice and re����ֱ�� procedures under Indonesian commercial law.

An Affiliate Agreement differs significantly from an Agency Agreement in several key aspects, though both involve third-party representation. While affiliate partnerships focus on commission-based marketing, agency relationships create broader legal authority to act on behalf of the principal.

• Legal Authority: Agency Agreements grant the agent power to legally bind the principal, while affiliates can only promote products without authority to make binding decisions.
• Compensation Structure: Affiliates typically earn purely performance-based commissions, while agents often receive fixed fees plus commissions.
• Liability Scope: Agents bear greater legal responsibility under Indonesian law for their actions on behalf of the principal, while affiliates have limited liability focused mainly on marketing compliance.
• Relationship Duration: Agency Agreements usually establish longer-term, more formal business relationships, while affiliate partnerships can be more flexible and project-based.