Hi, So basically, I am going to start affiliate system for my game where affiliates will advertise the game and earn commissions based on the income from the members that they refer. I am planning on paying out via PayPal but the question is - do I need to fill in any kind of forms to make it legal? I don't want to play with the fire so would like to know as much as possible to get it started legally. Or is it enough to create the system and that's it? Any help will be much appreciated. Thanks Don.
You have specified the word 'Legal' and you also make transactions through Paypal.For any affiliate system you should prepare some legal forms either by online or offline.You should also open a business account in paypal which requires to fill forms about your business.
In what aspect "legal"? From a contract point of view with your affiliates then there is nothing that you HAVE to do, you would be sensible in getting a technical savy solicitor to draw up the T&Cs of the scheme otherwise there may be loopholes that end up costing you a lot of money. The only other time when there may be more considerations is if your operating in a licensed environment (eg insurance, gambling, financial services etc) as you may carry some liability for what your affiliates are doing
A legal contract is always good not just to protect your legal rights but to ensure key issues are explicitly considered by all parties: such consideration makes the biz run better.
Most affiliate company agreements have a lot of stuff to protect the company. You will probably start getting people scamming your system then demanding payment, if you don't have any disclaimers on what you pay out for...?