In corporate law and taxes, an affiliate is a company that is related to another company, usually by being in the position of a member or a subordinate affiliate employment. In online retailing, affiliation is common in marketing and selling wherein one company may affiliate with another to sell products or services. The seller has a website on which affiliates may sell products. The seller has control over the site and pays a commission to affiliates.
Amazon affiliates are called «Amazon Associates. The associates sell on Amazon’s website, and Amazon takes a percentage of the sale price for its fee. In broadcasting, local TV stations are affiliates of a national network. These local stations are locally owned, but they use network content and advertising. Just to be clear, an affiliate is not part of the company with whom it affiliates. An affiliate is a separate company, an independent contractor.
Affiliate agreements can be entered into by any type of business, from sole proprietor to corporation. 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. What Should an Affiliate Agreement Include? 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?