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In this video tutorial, the importance of having a contract in place before engaging affiliates to promote products or services is discussed. A well-defined affiliate contract is essential to prevent legal issues, misunderstandings, and to establish trust in the partnership. The video outlines what an affiliate contract is, why it is necessary, and highlights eight critical components to include to protect your business. Additionally, the speaker, Ami, provides guidance on creating an affiliate agreement independently and offers a downloadable affiliate program template that can be utilized to complete the agreement in just 15 minutes.