An affiliate agreement is a type of contract between two or more businesses in which one party, the affiliate, agrees to refer customers or clients to another party, the partner. Affiliate agreements typically involve conditions such as commission payments, advertising restrictions, indemnification, and termination provisions—all designed to ensure that both parties understand the terms of the affiliation. In essence, an affiliate agreement is a way for businesses to collaborate while preserving their individual autonomy. By outlining all the legalities in one document, businesses are better equipped to form effective strategic partnerships and maximize profitability.