Affiliate Marketing and Discount Codes: Labeling, Contracts and Commissions
Affiliate links and discount codes are the most important source of income for many creators. Legally they are advertising, and that must be recognizable.
- Labeling of links and codes
- Contracts with affiliate networks and brands
- Enforcement of open commissions
Commission is consideration
Anyone who receives a commission for a click or purchase is acting on business. Contributions with affiliate links or personal discount codes should therefore be marked as advertising, where the link or code appears. According to the widespread opinion, an asterisk with an explanation in profile alone is not enough.
In addition to the labeling, it is about the contracts: commission models, cookie terms, cancellations and billing are often regulated unilaterally in favor of networks and brands. We check the conditions, negotiate better conditions and enforce open commissions.
Typical situations in which we help
- You use affiliate links in videos, stories or your bio.
- You have a personal discount code of a brand.
- A brand does not pay commissions or shortens them.
- A network blocks your account and retains credit.
- You have received a cease-and-desist letter due to the lack of labeling.
Legal basis at a glance
Identification
Affiliate links and discount codes must be marked as advertisements or advertisements. The marking must be in the respective contribution or link and be immediately recognizable.
Commission models
Pay-per-sale, pay-per-lead and hybrid models are common. Regulations on cancellations, returns, cookie duration and billing periods are important.
Billing and information
Creators often have no insight into the sales figures. A contractual right to information and examination rights prevent disputes.
Control
Commissions are operating income. In the case of foreign networks, sales tax special features must be observed.
Practical examples: typical scenarios
We regularly meet the following scenarios in the consultation. They are anonymized and simplified and show how such cases are typically classified. They do not describe any specific mandates and do not promise a specific result.
Cease-and-desist letter for discount code
Situation: An association warns an influencer because she names a discount code without advertising in Stories.
Legal assessment: The code with commission is advertising that requires labeling.
Our approach: We negotiate an appropriate cease-and-desist undertaking and change the labeling.
Reduced commission
Situation: After a successful campaign, a brand only bills a fraction of the expected commission and refers to returns.
Legal assessment: Without contractual arrangements for returns and information, billing is difficult to verify.
Our approach: We request information about the sales and enforce the difference.
Locked network account
Situation: An affiliate network blocks a creator for alleged rule violations and retains credit.
Legal assessment: The blocking must be justified according to the terms and conditions and the law of the platforms.
Our approach: We demand justification and payment and check the terms and conditions.
That’s how we go
- 1
Initial assessment
You briefly describe the facts to us and send documents such as a contract, cease-and-desist letter or screenshots. We will tell you promptly where you stand and what the next steps will cost.
- 2
Secure evidence and deadlines
We document posts, stories and chat history in court and record all deadlines. Content disappears quickly, especially with social media.
- 3
Set strategy
Together we decide whether negotiation, defense, cease-and-desist letter or contract drafting is the right way. It is always about your reach and your business relationships.
- 4
Implement and enforce
We negotiate, formulate, answer and, if necessary, go to court, also in an urgent procedure. You will regularly be informed of what is happening.
Regarding the costs: Before every step we tell you what it costs. Depending on the case, we charge a flat-rate fee or by hourly rate according to the Lawyers’ Remuneration Act (RVG). If the opponent is obliged to reimburse, for example in the case of a justified cease-and-desist letter, we will claim these costs for you. More on this on our page Fee.
Common mistakes to avoid
- Mark affiliate links only in profile, not in the post.
- Do not check conditions for returns and cookie term.
- Do not agree on any rights of information.
- Not taxing commissions.
Frequently asked questions about affiliate marketing
Do I have to tag every affiliate link?
Yes, the marking must be recognizable in the respective contribution.
Is an asterisk enough?
Mostly not alone. A clear indication such as advertising or display is safer.
Can I request information about sales?
If the contract provides for it, yes. In some cases, a right to information also arises from the law.
Related Topics
Do you need an assessment quickly?
Tell us your request. We’ll get back to you in advance and tell you in advance what costs you have to expect.