AFFILIATE MARKETING PROGRAM

Contract Principles & Agenda

The need for a contract between EA and company:
• Need an agreement between company and agent that agent will abide by all the company
policies and procedures.
• The company needs to reserve the right to forfeit the agent’s employment if it seems fit.
• Need to make sure agent does not misrepresent the product policies or make false
promises to generate leads.
• Need to make sure agent does not conduct any financial transaction on behalf of the
company without the company’s direct authorization.
• Need a formal agreement on the payout scheme between the company and the agent.
• Need to ensure agent does not promote or sell directly-competing products of another
company while under employment.
• As an agreement that company will provide the required promotional material and that
agents will not produce any unauthorized promotional material on their own.
• Company needs to reserve the right to have the final say in any dispute regarding lead
quality and revenue generation.
Non-Disclosure Agreement & Non-Compete Clause

• The agent cannot disclose any training, promotional material or sensitive

information about the company to any agency outside the company without
the company’s authorization.

• Doing so should elicit strict legal action against said agent/agents.

• Agent should not be allowed to start or enter a competing business for a

specific amount of time after leaving the organization.

• Since affiliate program is not prevalent in the Ed-Tech sector, as market

leaders, its important for us to preserve the first-mover advantage that we
secure.
 Leaving the Program

Concerns:
• Agents do not disclose sensitive company information or documents to
external agencies.
• Agents do not start or enter competing businesses for a fixed span of time
after leaving organization.
• Agents clear all existing dues (if any) before leaving the program.
• Agents don’t steal clients for competing or non-competing businesses.

Solutions:
• Non-disclosure Agreement.
• Non-Compete Agreement for employment contract.
• Thorough background check for existing dues.
Should we tap into agent-pool from the insurance company database directly?

• Reaching out to prospective EAs directly through the agent database on the
insurance company’s website or portal could be a violation of ethical hiring
practices and standards. Need to explore the legal ramifications if any.

Existing Non-solicitation Agreements

• Existing Non-Solicitation agreements need to be taken into consideration if

any. A non-solicitation agreement basically prevents employees from
bringing over clients when they move from one employer to another. It
usually applies when moving to competing businesses but still this is an
area to explore.