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An Affiliate Agreement sets the rules when one business promotes another's products or services for a commission in Saudi Arabia. It spells out how the affiliate can market the products, what percentage they'll earn, and when they'll get paid. These agreements must follow the Kingdom's e-commerce laws and Shariah principles around fair trading.

The agreement protects both parties by clearly defining performance targets, payment terms, and marketing guidelines. It covers important details like tracking sales, handling customer data under Saudi data protection rules, and resolving disputes through local courts. Saudi businesses often use these agreements for online marketing partnerships and regional sales expansion.

Use an Affiliate Agreement when launching online marketing partnerships in Saudi Arabia, especially for e-commerce ventures or digital service promotions. This agreement becomes essential before allowing third parties to market your products, as it establishes clear commission structures and protects your brand under Saudi commercial law.

The timing is critical when expanding your sales channels through affiliates, influencers, or regional distributors. Put this agreement in place before any promotional activities begin to ensure compliance with Saudi digital marketing regulations, protect customer data, and maintain Shariah-compliant payment arrangements. It's particularly important when working with international affiliates targeting the Saudi market.

• Affiliate Contract: Standard agreement for ongoing digital marketing partnerships, covering basic commission structures and performance metrics under Saudi e-commerce laws
• Affiliate Referral Agreement: Specialized version focused on one-time or limited-duration referral arrangements, with specific payment terms for successful customer introductions rather than continuous promotion

• Business Owners: Saudi companies and entrepreneurs who want to expand their market reach through affiliate marketing programs, typically e-commerce platforms or digital service providers
• Affiliate Marketers: Saudi-based influencers, bloggers, or digital marketing agencies who promote products for commission under Shariah-compliant terms
• Legal Counsel: Corporate lawyers or legal departments ensuring compliance with Saudi commercial laws and e-commerce regulations
• Digital Platform Operators: Tech companies managing affiliate tracking systems and commission payments in accordance with Saudi financial regulations

• Business Details: Gather complete legal names, commercial registration numbers, and addresses of both the company and affiliate partners
• Commission Structure: Define exact commission rates, payment schedules, and minimum payout thresholds that align with Saudi banking regulations
• Marketing Guidelines: Document approved promotional methods, banned practices, and content approval processes under Saudi digital marketing laws
• Technical Setup: Specify tracking methods, reporting requirements, and data handling procedures compliant with Saudi privacy regulations
• Performance Metrics: Establish clear KPIs, conversion definitions, and monitoring systems that meet Shariah-compliant business practices

• Party Identification: Full legal names, commercial registration numbers, and authorized signatories under Saudi law
• Commission Terms: Detailed Shariah-compliant payment structure, calculation methods, and payout schedules
• Marketing Rules: Specific guidelines for promotional activities aligned with Saudi digital marketing regulations
• Confidentiality: Data protection measures compliant with Saudi privacy laws and cybersecurity requirements
• Termination Clauses: Clear conditions for ending the agreement that respect Saudi commercial law
• Dispute Resolution: Specified Saudi court jurisdiction and applicable Islamic law principles

While an Affiliate Agreement focuses on commission-based marketing relationships, a Agency Agreement establishes a broader business representation arrangement. The key differences matter significantly under Saudi commercial law and Shariah compliance requirements.

• Scope of Authority: Agency Agreements grant broader powers to represent the business in various transactions, while Affiliate Agreements strictly limit authority to marketing and promotional activities
• Legal Liability: Agents can typically bind their principal company legally, whereas affiliates cannot make commitments on behalf of the business
• Payment Structure: Agency Agreements often include fixed fees plus commissions, while Affiliate Agreements typically operate purely on performance-based compensation
• Regulatory Requirements: Agency relationships in Saudi Arabia require specific commercial registrations and permits, while affiliate marketing has lighter regulatory obligations