Affiliate Definition

What Is an Agent?

An agent serves as an intermediary partner bridging the gap between a project team or platform and its end users, especially in markets, channels, and services that are difficult for the official team to reach directly. Within the Web3 ecosystem, agents operate similarly to regional storefronts or channel partners: they drive user acquisition, educate new users, facilitate payment and compliance processes, and earn commissions or service fees according to established rules.

In areas like exchanges, wallets, and decentralized applications (dApps), agents typically handle three core functions: user acquisition and promotion, localized support, and business coordination. This can include onboarding tutorials, guiding users through identity verification, or organizing offline events to expand user bases. Because regional operations and compliance requirements differ significantly, many brands outsource these tasks to agents familiar with the local market.

Why Are Agents More Common in Web3?

Agents are particularly prevalent in Web3 due to the challenges of cross-border compliance, high user acquisition costs, and the need for localized services. Variations in regulations, payment norms, and social media ecosystems across different countries and regions make it difficult for platforms to cover all aspects with a single team. Agents play a critical role in local implementation.

Moreover, building early-stage user education and trust often requires face-to-face engagement. OTC (over-the-counter trading—direct transactions between merchants and users outside matching engines) and offline events are standard practices in many regions, with agents taking on prominent roles. Additionally, newcomers often need guidance with KYC (Know Your Customer—identity verification required for compliance) and onboarding, so agents help platforms lower their costs for acquiring and serving users.

How Do Agents Operate and Coordinate With Projects?

Agents usually operate under a “contract + performance” model: the project sets targets (such as new active users, trading volume, or node count), the agent develops local strategies and reports progress periodically, and compensation is based on results.

• Lead Generation Agents: Like a storefront bringing in foot traffic, agents are responsible for exposure, explanation, and user conversion—frequently seen in communities, social media channels, or offline meetups.
• OTC Agents: Agents act as compliant merchants facilitating fiat-to-crypto exchanges. They manage customer service and risk control, earning from spreads or transaction fees.
• Education & Event Agents: These partners organize beginner classes or roadshows, translating complex concepts into accessible language for users; compensation is based on the number or effectiveness of sessions.
• Node/Hardware Distribution Agents: For example, selling public chain nodes or hardware wallets. Agents handle distribution and after-sales support, settling accounts by device or node count.

The typical workflow includes needs assessment, solution review, compliance checks, contract signing, campaign execution, and data validation. Projects provide official links, invite codes, and tracking systems to ensure transparency in statistics and settlements.

Where Do Agent Earnings Come From?

Agents primarily earn through three channels:

• Commission/Rebate: Similar to a retail sales commission—agents receive a proportion of transaction fees generated by referred users; settlement cycles follow platform rules.
• Profit Sharing/Kickbacks: When agents take on regional operational goals, they receive a percentage of overall performance—common in channel or B2B partnerships.
• Service Fees: Charged per session, hour, or deliverable—for executing events, providing compliance assistance, or customer support outsourcing.

For example, in exchange promotions: if an agent helps onboard new users who then trade on the platform, commissions are settled based on transaction fees generated by these users. The specific ratios and compliance requirements follow public platform guidelines and contractual agreements. To prevent disputes, projects typically offer data dashboards for verification.

What Is the Difference Between Agents, Brokers, and Distributors?

Agents act as regional operational contractors responsible for user acquisition, service delivery, and execution—with broader responsibilities and compliance duties. Brokers primarily introduce clients; after-sales support and compliance remain with the platform. Distributors focus on product sales channels (e.g., hardware wallets or enterprise service packages), profiting from purchase-sale price differences or kickbacks.

In Web3, teams may play multiple roles simultaneously: generating leads as brokers while also handling events and after-sales education. Key distinctions depend on contract scope, settlement criteria, and who bears compliance responsibilities.

How Do Agents Operate Within Exchanges?

In exchanges, agents are commonly involved in broker/channel programs, OTC merchant activities, and educational collaborations. For example, Gate provides official partnership portals, invite codes, and data dashboards; settlements follow publicly disclosed broker/channel rules.

1. Submit Credentials & Application: Prepare company or personal information plus regional/channel details; submit via Gate’s official partnership portal for review.
2. Obtain Official Links & Tracking: Generate unique registration links or invite codes via the official backend to ensure accurate user attribution and data tracking.
3. Execute Localized Campaigns: Use local social media and offline communities for presentations, tutorials, and Q&A—helping newcomers with registration, KYC completion, and first trades.
4. Reconciliation & Settlement: Periodically verify data and commissions via Gate’s backend; settle according to rules. For event/education services, accept deliverables as per contract terms.

Always use Gate’s official links, certified backend systems, and designated settlement methods—avoid unofficial payments or non-official channels to protect both parties’ interests and safeguard user funds.

What Compliance Issues & Risks Should Agents Be Aware Of?

Agents face two main risk categories: financial and compliance. Financially, they must avoid accepting or holding client funds privately—this can lead to misappropriation or disputes. On compliance, agents must follow local advertising regulations and anti-money laundering (AML) requirements; KYC processes must be completed by the platform’s official system—falsifying or handling documentation on behalf of clients is strictly prohibited.

Risk mitigation steps include:

1. Identity & Credential Verification: Only work with projects that have clear brand authorization and verifiable official portals; keep records of emails and contracts.
2. Standardized Processes: Publish onboarding materials covering user acquisition, education, KYC guidance, and risk alerts; use official links for key actions to minimize manual intervention.
3. Traceable Settlement & Reconciliation: Use platform backends for all accounting; avoid cash settlements; retain records of major communications.
4. Data & Privacy Protection: Strictly comply with personal data protection laws; do not retain user information beyond authorized scope.

What Skills & Tools Are Needed to Become an Agent?

To operate efficiently as an agent requires expertise in four areas: channels, compliance, operations, and data.

1. Channel & Content Capabilities: Build local communities and social media hubs; communicate complex concepts through beginner-friendly tutorials and Q&A materials.
2. Compliance & Risk Control Frameworks: Define clear boundaries—such as never holding client funds or handling KYC applications; ensure advertising language/materials pass compliance review.
3. Operations & Event Execution: Plan offline meetups, online livestreams, onboarding courses; develop standard workflows and checklists.
4. Data & Settlement Tools: Master platform dashboards; set up attribution systems and reconciliation sheets; regularly review conversion rates and costs.

Which Project Stages Most Require Agents?

Projects in early launch or regional expansion phases need agents most—for example: newly launched exchange services; wallet products targeting emerging markets; applications requiring fiat onboarding education. Web3 games, public chain node recruitment drives, and enterprise-level B2B services also rely heavily on local partners for trust-building and networking at the outset.

Once a brand has established stable online conversion in a region or offers fully self-service products (with comprehensive online tutorials/customer support), the need for agents diminishes. The decision depends on localization complexity, compliance demands, and acquisition cost-benefit analysis.

How Are Agent Trends Changing?

By 2025, tighter compliance requirements and greater data transparency are becoming industry standards: platforms increasingly upgrade “referral commissions” into “compliant service partnerships,” demanding higher standards for marketing materials, processes, and settlements. Settlements are more digital—platform dashboards and on-chain records support reconciliation; stablecoin payments and periodic audits are now common practice.

Agents are also evolving into full-fledged service providers—not just acquiring new users but also offering education, customer support, and local compliance consulting as bundled services. As operations become more multi-regional and multi-lingual, professional teams with specialized skills stand out competitively.

Agent Key Takeaways

Agents are localized executors connecting platforms with users—they add value through user acquisition, education initiatives, compliance assistance, and event operations. Their earnings come from commissions, profit sharing, or service fees. In exchange environments especially, reconciliation should always use official links/backends/systems; key compliance lines include never holding client funds or handling KYC on behalf of users. The choice to use agents depends on localization challenges versus cost-benefit analysis. Going forward, agents will continue to evolve toward greater compliance integration, digitalization of processes/data tracking, and professional service provision—teams balancing channel growth with operations and risk management will have the greatest advantages.

FAQ

What Is the Difference Between Agents and Distributors?

Agents do not own product inventory—they represent manufacturers for sales and earn commissions. Distributors purchase inventory first and profit from resale margins. In simple terms: agents are intermediaries; distributors are resellers. In Web3, agency models are more common since there’s no need to hold assets.

What Basic Requirements Must I Meet to Become an Exchange Agent?

Three main prerequisites: a user base or community influence; basic knowledge of cryptocurrency trading; ability to establish professional coordination and management systems. Each exchange (such as Gate) sets its own criteria—most provide training and technical tools to lower entry barriers.

Is Agent Income Reliable? How Can I Ensure Earnings?

Income is directly linked to user trading volume and fee share ratios—it can be substantial during market upswings but will decrease during downturns. To maintain stable earnings: continually expand your effective user base; boost user activity levels; negotiate better profit-sharing terms with platforms. It’s recommended to start with leading platforms like Gate to build experience.

What Legal & Risk Issues Should I Be Concerned About as an Agent?

Key risks include lax user identity checks that may violate AML/KYC compliance standards; unclear agency relationships that could trigger legal disputes; liability for user losses. Always partner with licensed platforms (such as Gate), strictly follow their KYC procedures, and maintain thorough transaction records plus communication evidence.

How Do Agent/Broker/Distributor Roles Differ Practically in Web3?

Agents represent manufacturers for sales commissions; brokers match buyers/sellers for transaction fees; distributors focus on channel sales profits from wholesale-retail spreads. In exchanges/project fundraising scenarios, agents have broader authority and deeper partnerships—but also carry greater responsibilities. Choosing your role should be based on your strengths and risk tolerance.