Prior to launching your affiliate program you want to be sure you have a thorough set of Terms and Conditions. Though they will need to be modified occasionally, its best to start off with a strong foundation so your affiliates know exactly what they can and cannot do.
Your Terms of Service should start with an overview of what is expected and make it clear that by submitting an application to the merchant program the affiliate understands this is a legal agreement and has read this agreement.
Sections to be included in the TOS should include:
*Merchants rights and obligations
*Affiliates rights and obligations
*Payment provisions
*Promotion restrictions
*Confidentiality
*Indemnification
*Warranty Disclaimer
*Termination
*FTC compliance
*Misc. (if needed)
Most networks do have a standard TOS that you can base your individual agreement around, however, you may have a different position regarding promotions or obligations therefore you can adjust it to your specifications.
It’s important for the TOS to be precise, easy to read and understand and naturally protect the rights of the merchant as well as the affiliates. Most affiliates in honesty will never read them, however, if there is ever a need to remove an affiliate for breaching the TOS you will have an excellent source to reference to them.