An affiliate agreement is a contract between two parties, the affiliate and the merchant. In the contract, the affiliate agrees to promote the merchant’s products or services in exchange for a commission on any resulting sales. The agreement typically outlines the terms and conditions of the arrangement, including the commission rate and any restrictions on how the affiliate can promote the products or services. It may also include provisions for tracking sales and handling customer complaints or issues. The agreement is designed to protect both parties and ensure that the affiliate relationship is fair and transparent.