Managing Risk: Legal Issues for Merchants and Affiliate Marketers
My goal is to present a checklist of legal issues and trends surrounding affiliate marketing. I hope this will be interesting to both merchants and marketers. Affiliate marketing has unfortunately gained a bad reputation for being particularly high risk. While the industry is unlikely to ever be risk-free, it is possible to manage your risk by (1) investigating your prospective marketing partner; (2) using and maintaining a tight legal contract that allocates the risk and provides for the appropriate indemnifications, and (3) keeping informed about the current technology, marketing strategies, and regulatory climate. Without further ado, let's take a look at risk identification and management for merchants and affiliate marketers.