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Business Affiliate Questions

A business affiliate is someone who promotes another business through their business. This can be done in a number of ways but the most popular is to endorse a product and provide the affiliate link to direct traffic to the product site. Another is to give testimonials about a service or product. The benefits of having a business affiliate are great and can boost a products sale and encourage potential customers to visit your website. Listed below are a few of the more commonly asked questions about business affiliates.

What should I put on my blog when I link an affiliate product? Would putting "affiliate link" after the link cover it?

FTC rules state that when endorsing a product or giving a testimonial, you have to let the readers know what your connection is with the product and if you receive money for your endorsement. The rules do not state exactly how you explain the connection, only that it needs to be added. Here is a link that explains endorsements: http://ftc.gov/opa/2009/10/endortest.shtm

There are no requirements if you are advertising or linking a product. However, if you add a testimonial to the product, you have to include a notice of any payments that you receive for your testimonial. This can be done in any way that works for you, as long as you disclose that you are endorsing the product or giving a testimonial in exchange for something.

As far as what you need to include when you add a link, you can put an asterisk * by the link. This will alert the reader that there is an explanation at the bottom of the page. You can give an explanation for the link and include your involvement with the affiliate.

I have an account with ebay as an affiliate. They ended my service saying I violated the terms of service. They have kept two months worth of commissions and still draw revenue from my links. Is there anything I can do?

The website is earning a profit from your links and not allowing you to gain a profit from it. You can sue the company for "breach of the implied covenant of good faith" because they are denying you the commission from the links when they had agreed to pay you. You can sue in "quasi contract". This means even without a contract, the company is still earning money from your work and you should be entitled to some form of compensation for the work that you have done and the money that you are making for the company. If the damages you wish to gain from the company are less than $7,500, you could sue them in small claims court.

We are a yoga business and want to set up "Affiliate Centers". Does the word "Affiliate" bind us in any way to another organization that signs a contract to become an "Affiliate Center" in the case of their bad business practices?

When you call an organization an affiliate, you leave the impression that the organization is connected to your company. This would potentially make you liable for the organizations actions. Assuming that you want the centers to be independently owned like a franchise, you would want a franchise agreement. You need to state clearly in the agreement, that you are not responsible for the centers actions or omissions and that you are free from any lawsuits that may affect that center.

How do I go about turning my internet affiliate marketing hobby into a business?

If you want to turn your affiliate marketing hobby into a business, you may want to go with a Limited Liability Company. An LLC is easiest type of business to manage and any taxes from income will be claimed through your personal income taxes. To begin this process, just get online and go to your Secretary of State's website to form the LLC. After you have done this, you need to contact the IRS and request an EIN under the LLC name. You need to be sure to use your EIN when you report income made from the LLC but claim the income on your personal taxes.

I am promoting a seminar as an affiliate and cannot get confirmation from the owners about the usage of the trademark while endorsing the seminar. Should I be concerned about the affiliate manager claiming trademark infringement while endorsing them?

You probably have nothing to worry about. You are in charge of promoting their seminar, so they have extended some rights to you as far as using their trademark. You are not breaking any laws when you use the trademark to promote the seminar. However, if you were using the trademark in a way that was not representing the seminar or that was taking business from the company, you may have issues.

If you are considering becoming a business affiliate and are not sure how to begin, you can consult Experts who are familiar with the process for accurate information on how to proceed. If you have legal questions, you should consult an Expert in Business Law to assist you in your legal ventures.

Ask a Business Lawyer

Law Pro
Law Pro, Attorney
Category: General
Satisfied Customers: 1744
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
11688690
Type Your Business Law Question Here...
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2 Business Lawyers are Online Now

How JustAnswer Works:

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    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

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Ron
ASE Certified Technician
Satisfied Customers: 21604
23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
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I am fellowship trained specializing in general urology and reconstructive urology.
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Appliance repair business owner for over 43 years.

Recent Affiliate Questions

  • I am a Plaintiff in a law suit. I have been suing a title

    I am a Plaintiff in a law suit. I have been suing a title company and their liability insurance carrier (AIG) for breach of fiduciary duty. Prior to the suit, while the claim was being handled, the documents and denial letter issued to me were from AIG. Now, through discovery, AIG is claiming they didn't handle the claim and one of their affiliate companies did. I am considering amending my petition. Here are my considerations:
    Amending the petition to include the AIG affiliate.
    Not dismissing AIG directly and adding additional counts to my petition for negotiating in bad faith, since they now claim they were not the correct company I should have been dealing with.
    Here is my question: What are some additional counts I can add against AIG for stringing me along and then, in discovery, more-or-less, stating you were dealing with the wrong company. Thank you.
  • I need assistance to review contract for Work For Hire. Anything

    I need assistance to review contract for Work For Hire. Anything else I should add? Or remove?
    By this agreement, made this _____ day of ______, both parties described herein as (Name) hereafter referred to as “Contractor” and (Name), hereafter referred to as “Contractee”, do hereby agree to all the terms and agreements, described and given below regarding presently entitled script (subject to change) “Title Name”, owned and Copyright issued to (Contractor’s Name), the “Contractor”.
    1.) COMPENSATION:
    Contractor agrees to pay Contractee $8,000 for completion of ghost writing script. Compensation includes commencement, completion of final draft, and one polished of final draft. Any further/additional rewrites are to be negotiated in good faith if such a point arises. Compensation will be paid in three parts as described below. Payment shall be made either via check or PayPal. The first interval of payment shall be made within 5 business days of receiving the intellectual property of the contractor.
    A.) $1,000 to start commencement of writing.
    B.) $3,000 upon turning in of final draft.
    C.) $4,000 upon turning in of polish.
    2.) RIGHTS:
    All intellectual property rights to the script, including credits, such as “Written By” and “Story By”, shall remain with the Contractor. Contractor shall retain full creative control of the script, including, but not limited to the option to make any creative changes deemed necessary, or hiring of a new writer at any future point in time. Contractor may also shop script to whomever they’d like at any point in time. Contractee, upon receipt of payment, shall hold no rights nor Copyright to the Script and shall not be entitled to any intellectual property rights, related to the property, subject to this agreement. Contractee’s work under this agreement is expressly agreed to be a "work made for hire," under the U.S. Copyright Act (17 U.S.C. 101).
    3.) TIME:
    Contractor endeavors to complete script in a timely manner -- not to exceed a period of three months for the initial draft, and another month for the polish/final draft.
    4.) Non-Disclosure:
    In consideration of the disclosure of Proprietary Information by the Disclosing Party, the Receiving Party hereby agrees: (i) to hold the Proprietary Information in strict confidence and to take all reasonable precautions to protect such Proprietary Information (including, without limitation, all precautions the receiving party employs with respect to its own confidential materials), (ii) not to disclose any such Proprietary Information or any information derived there from to any third person, (iii) not to make any use whatsoever at any time of such Proprietary Information except to evaluate internally its relationship with the Disclosing Party, and (iv) not to copy or reverse engineer any such Proprietary Information. The Receiving Party shall procure that its employees, agents and sub-contractors to whom Proprietary Information is disclosed or who have access to Proprietary Information sign a nondisclosure or similar agreement in content substantially similar to this agreement.
    A.) Without granting any right or license, the Disclosing Party agrees that the foregoing shall not apply with respect to any information after five years following the disclosure thereof or any information that the Receiving Party can document (i) is or becomes (through no improper action or inaction by the Receiving Party or any affiliate, agent, consultant or employee) generally available to the public, or (ii) was in its possession or known by it prior to receipt from the Disclosing Party as evidenced in writing, except to the extent that such information was unlawfully appropriated, or (iii) was rightfully disclosed to it by a third party, or (iv) was independently developed without use of any Proprietary Information of the Disclosing Party. The Receiving Party may make disclosures required by law or court order provided the Receiving Party uses diligent reasonable efforts to limit disclosure and has allowed the Disclosing Party to seek a protective order.
    B.) Immediately upon the written request by the Disclosing Party at any time, the Receiving Party will return to the Disclosing Party all Proprietary Information and all documents or media containing any such Proprietary Information and any and all copies or extracts thereof, save that where such Proprietary Information is a form incapable of return or has been copied or transcribed into another document, it shall be destroyed or erased, as appropriate.
    C.) The Receiving Party understands that nothing herein (i) requires the disclosure of any Proprietary Information or (ii) requires the Disclosing Party to proceed with any transaction or relationship.
  • I am a retail music store owner. Nearly 18 years ago I entered

    I am a retail music store owner. Nearly 18 years ago I entered into an express contract with a major instrument rental franchise, paying money to become an affiliate. As part of the contract the major instrument rental franchise mother company provides literature and other support features, which up until the past few years have included the use of paper brochures called rental information brochures. A handful of years ago the mother company changed their ownership structure (the owner took in another partner), but no affiliate contracts were effected or altered (per a letter sent to affiliates such as myself, specifying no changes for affiliates). Afterward the mother company launched a website, ASKING affiliates to promote it. THE WEBSITE SPECIFICALLY HAD SECTIONS RECRUITING AFFILIATES. I contacted the mother company and commented that they were FORCING my business to advertise and recruit for them, in competition with my own franchise affiliate business (a matter that had already been in discussion when they "sold" a center of my "territory" to another dealer, a matter which was eventually resolved only after that dealer closed it's business due to family death - in other words a topic never satisfactorily resolved by the mother company, in my opinion). My complaint about being forced to promote a website that advertised recruitment was not addressed. As time passed ALL MATERIALS (paper literature, tags on all rental instruments, company stickers) all bear the website of the mother company, who recruits dealers THROUGH that same website. I wrote another letter to the company, explaining that I believed that it could be illegal, and a breach of contract for the company to FORCE me to advertise in ways which allowed no opt-out regarding recruiting, because as a matter of course I could not remove tags, stickers or their website address which appeared on all support materials. UNDER THE TERMS OF OUR ORIGINAL CONTRACT I AM NOT PERMITTED TO CREATE MY OWN COMPANY TAGS, CONTRACTS OR SUPPORT MATERIALS BEARING COMPANY LOGO. At this time, in order to advertise I must use materials that also serve to recruit competitors in my area (contrary to my desire, and directly in competition with my own business). The company then promoted affiliate "micro-sites", which were supposed to be a support tool for affiliates to inform our customers about our rental franchise "on line". The reason I am contacting a lawyer today is that the microsite boasts a "widget". My own music store website can link to my affiliate instrumental microsite using this widget. ONCE ON THE MICROSITE THE MOTHER COMPANY directs customers that I drove to MY MAIN STORE WEBSITE to THEIRE WEBSITE, and there is no way "back" to our store page, instead navigation is set up to promote an environment where my CUSTOMERS, NOSEY LOCAL COMPETITORS or ANYONE visiting my webpage will be driven ONLY to the mother company site (over which I have no control) and then navigation is designed to lead them to all of the elements of that site, INCLUDING THE RECRUITMENT TABS. In other words, if I want to be an affiliate I have NO CHOICE that does not result in my being forced (with out compensation) to recruit for the mother company that I have an affiliate franchise under. IS THIS LEGAL? They are ignoring my letters of concern.
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