Legal Considerations
This page outlines common legal considerations when working with referral partners.
Partner Agreements
Section titled “Partner Agreements”We strongly recommend having written agreements with partners covering:
Revenue Share Terms
Section titled “Revenue Share Terms”- Percentage of revenue per attributed purchase
- Revenue types included (subscriptions, one-time purchases, renewals)
- When earnings are calculated (at purchase, after refund period)
Payment Terms
Section titled “Payment Terms”- Minimum payout threshold (e.g., $5, $25, $100)
- Payout frequency (daily, weekly, monthly)
- Currency and conversion if applicable
Duration and Termination
Section titled “Duration and Termination”- Agreement term (indefinite, fixed period)
- How either party can terminate
- What happens to pending earnings on termination
Tax Considerations
Section titled “Tax Considerations”United States
Section titled “United States”- Stripe collects W-9 forms from US partners
- 1099 forms are generated for partners earning over $600/year
- Partners are responsible for reporting earnings as income
Canada
Section titled “Canada”- Partners report affiliate income on their T1 tax return
- If earning over $30,000 CAD annually, GST/HST registration may be required
- Business expenses related to promotion may be deductible
For You (the App Owner)
Section titled “For You (the App Owner)”- Partner payments are typically business expenses
- Keep records of all payments for tax purposes
- Consult your accountant about deductibility
For Partners
Section titled “For Partners”- Partners are responsible for reporting their earnings
- Stripe provides them with tax documentation where applicable
- International partners may have withholding requirements
Intellectual Property
Section titled “Intellectual Property”Consider addressing:
- Use of your app’s name and branding
- Approved marketing materials
- Prohibited claims or representations
- Ownership of promotional content
Compliance
Section titled “Compliance”For Affiliate Marketing
Section titled “For Affiliate Marketing”Many jurisdictions require disclosure:
- FTC guidelines in the US require clear disclosure of affiliate relationships
- Partners should disclose they earn from referrals
For App Store Compliance
Section titled “For App Store Compliance”- Apple and Google have policies on affiliate programs
- Ensure your program doesn’t violate app store terms
Sample Agreement Topics
Section titled “Sample Agreement Topics”A comprehensive partner agreement might include:
- Definitions — Partner, Referral, Attribution, etc.
- Commission Structure — How earnings are calculated
- Payment Terms — When and how payments are made
- Partner Obligations — Promotional guidelines
- Prohibited Activities — Fraud, spam, misrepresentation
- Termination — How to end the relationship
- Liability — Limitation of liability
- Governing Law — Which jurisdiction applies
Recommended Practices
Section titled “Recommended Practices”Document Everything
Section titled “Document Everything”- Keep signed agreements on file
- Document payout history (BitEasy provides this)
- Record any special terms or negotiations
Clear Communication
Section titled “Clear Communication”- Set expectations upfront about earnings
- Be transparent about payout schedules
- Notify partners of program changes
Regular Review
Section titled “Regular Review”- Review partner performance periodically
- Update agreements if terms change
- Address underperforming or problematic partners
Resources
Section titled “Resources”United States
Section titled “United States”- FTC Endorsement Guidelines — Disclosure requirements
- IRS Self-Employment Tax — Tax obligations for affiliates
Canada
Section titled “Canada”- CRA Business Income — Reporting affiliate income
- CRA GST/HST Registration — When registration is required
General
Section titled “General”- Stripe Connect Documentation — Payment platform details
Next Steps
Section titled “Next Steps”- Partner Analytics — Monitor partner performance
- Earnings — View detailed earnings data