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Affiliate & Link Agreements UK: What to Include

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Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Running a website or online business almost always means working with other sites at some point. You might pay bloggers a cut of sales they send your way, or swap links with a complementary business to help both of you get found on Google. These arrangements sound simple when you shake hands over email, but the reality is that money, reputation, and search rankings all ride on them. Putting the terms down in writing protects everyone and saves arguments later. On this page I will walk through what affiliate marketing and link exchange agreements actually do, what clauses matter most, and where people tend to come unstuck. If you are about to enter one of these arrangements in the UK, this should give you a solid grounding before you commit.

What this document is

An affiliate marketing agreement is a written contract between a business (often called the merchant) and a third party (the affiliate) who agrees to promote that business's products or services in return for a commission on sales or leads. The agreement records the commercial relationship: what gets promoted, how the affiliate is allowed to promote it, how performance is tracked, when commission is paid, and what happens if either side wants out.

A link exchange agreement is a related but different creature. Two website owners agree to place links to each other's sites, usually to pass traffic and, historically, to help with search visibility. The contract sets out which pages will host the links, how they should appear, how long they stay up, and what each party can expect from the other.

Both types of agreement sit within ordinary contract law in England and Wales and need to work alongside advertising rules, consumer protection law, and data protection obligations.

How to use this document

  1. Define the scope clearly. Write down exactly what products or services the affiliate is promoting, or which pages are being linked. Vague scope is the single biggest source of disputes. If the affiliate can promote your whole catalogue, say so. If only a specific product line is covered, spell that out too.
  2. Set the commercial terms. Nail down the commission structure (percentage, flat fee, tiered rates), what counts as a qualifying sale or lead, the cookie window for tracking, payment timing, and currency. For link exchanges there is usually no money changing hands, but you should still record the value exchange and what each party is giving.
  3. Address promotional conduct and brand use. Decide how the affiliate may use your trade marks, logos, and product images, and what they must not do. Common no-go areas include bidding on your brand name in paid search, spam, misleading claims, and anything that would breach the Advertising Standards Authority's rules on clearly disclosing paid promotions.
  4. Cover tracking, reporting, and audit rights. The affiliate needs to know how performance is measured and how often statements are issued. The merchant usually wants the right to audit figures, withhold commission on refunded or fraudulent orders, and adjust tracking methods with notice. For link exchanges, agree how you will check that links remain live.
  5. Deal with termination, liability, and what happens afterwards. Either side should be able to walk away on reasonable notice. Set out what happens to unpaid commission, how quickly links or promotional material must come down, and who is liable if something goes wrong, for example if the affiliate makes a claim about your product that lands you in trouble with a regulator.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q Do I legally need a written affiliate agreement?
There is no statute that forces you to have one, but working without a written agreement is risky. Without clear terms you are relying on implied contract principles and memory, which rarely ends well when commission disputes or brand misuse issues arise. A short written agreement is cheap protection compared to the cost of arguing over unpaid fees, trade mark misuse, or unauthorised claims made by an affiliate you thought you had control over.
Q Are link exchange agreements still worth doing for SEO?
Search engines have changed a lot. Aggressive or artificial link swapping can now hurt your rankings rather than help them, because Google's guidelines specifically target manipulative link schemes. Genuine partnerships between relevant, reputable sites can still add value for traffic and credibility. If you do enter one, keep it natural, relevant to your audience, and document it so both parties know what is expected.
Q What tax and disclosure rules apply to UK affiliates?
Affiliates earning commission are generally running a trade or business and need to declare income to HMRC in the usual way. On the promotional side, the Advertising Standards Authority requires that paid or incentivised content is clearly labelled, for example with 'ad' or 'affiliate' markers. The Competition and Markets Authority has also taken enforcement action against hidden endorsements, so transparency is not optional.
Q Can I terminate an affiliate agreement if the affiliate damages my brand?
A well drafted agreement will give you a right to terminate immediately for material breach, which typically covers misleading promotion, trade mark misuse, breaches of advertising rules, or actions that damage your reputation. Without such a clause you may be limited to terminating on notice or relying on common law rights, which can be slower and harder to enforce. This is one reason the termination section is worth careful attention.
Q Does the agreement need to deal with data protection?
If the affiliate collects personal data on your behalf, or you share customer data with them, UK GDPR and the Data Protection Act 2018 apply. You need to work out whether you are joint controllers, separate controllers, or in a controller-processor relationship, and add appropriate clauses. Even a simple tracking cookie arrangement can raise issues, so it is worth thinking through the data flows before you sign.
Q What if an affiliate makes false claims about my product?
You could be exposed to regulatory action or consumer complaints even if the affiliate made the claim, because you are the trader benefiting from the promotion. A good agreement requires the affiliate to comply with all applicable advertising and consumer laws, gives you rights to approve creative, and includes an indemnity so the affiliate carries the cost if their conduct causes you loss. Monitoring is still sensible alongside the contractual protections.
Q How long should an affiliate or link exchange agreement last?
There is no standard term. Many affiliate programmes run on a rolling basis with a short notice period either side, which gives flexibility as products and commercial priorities shift. Link exchanges are often set for a fixed period such as six or twelve months with a review point. Match the length to the commercial reality and always include a clean exit mechanism so you are not locked in if circumstances change.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.