Sales Affiliate Contract

General information for the business: We sell products online and on the phone
Legal topic: Contract
Description of legal work: I need to create a legally binding contract for our sales affiliates. Ideally you have done something like this already, and can use that document as a basis for this, with a few additions to tailor it to our needs. Cheap is the name of the game, I know I should be spending £100’s on this, but we just don’t have the money.
Extra notes: Sales affiliates are people who engaging in referring business to us at our web site or via the telephone. They use a referral code that then gives the new customer a discount. They are not engaged in actually selling any products, just promoting our business.

In return, we give them:
• % Commission on Sales (“Standard Commission”)
• % Commission on Sales by New Customers to us (“New Customer Bonus”)
• % Commission on Sales by Customers they first introduced to us for the next 90 days after the first sale (“Recurring Commission”)
• A monthly promotional merchandise credit, that they then use to buy promotional materials from us
• Discounted merchandise
• Access to our back end system that shows an overview of sales data and commissions earnt (but no access to actual customer data)


Sales Affiliates work as self-employed, and TAX/NI responsibilities are down to them. We need to cover the legal standpoint as set out here http://www.hmrc.gov.uk/employment-status/

To assist in the above, our system will submit to us on their behalf an invoice of commissions and promotional allowance, less deductions which consist of promotion materials we have supplied.

They (automatically) submit their invoice on the 2nd working day of each month, and we pay it within 7 working days by BACS or PayPal

There needs to be a line about if they are VAT registered, they need to supply us there VAT Number

Confidentiality, must continue after contract ends

Contact will end 3 months after last referral

Needs to be English Law

Please try and make it simple and plain English.

Ultimately we will turn this into an electronic document, and they will sign it on line.