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I Might Be Terminated From Amazon Affiliate Program Soon

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I Might Be Terminated From Amazon Affiliate Program Soon

Postby CorpRebel » Sat Jun 27, 2009 10:56 am

Not that I'm really surprised. I could see this coming ...

Yesterday I got an email from Amazon warning me if Bill HR 6141 passes in RI they will terminate my affiliate association with them.

Here what they the sent & I posted it on my blog ... Some other links there to keep an eye out on this "nexus tax" stuff.

http://www.ebizrantzandravez.com/160/my ... amazoncom/

As usual, the politicos are shooting themselves in the foot as always. They're gonna lose even MORE revenue by doing these moronic laws.

Maybe I'll move to Tennessee! :twisted:


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Postby lisamariemary » Sat Jun 27, 2009 2:49 pm

Oh man, Rick - that's a bummer!! Is Amazon a good portion of your income? (I hope not. eeks)

All of this tax and product review stuff is just crazy!
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Postby CorpRebel » Sat Jun 27, 2009 4:30 pm

lisamariemary wrote:Oh man, Rick - that's a bummer!! Is Amazon a good portion of your income? (I hope not. eeks)


Nah ... Like I mentioned in my blog post, I don't do too much with Amazon but was getting ready to do a bit more. They HAVEN'T actually terminated me yet - just a warning email. BUT ... majority of my online income IS from affiliate commissions from ALOT of other merchants also.

But obviously I'm gonna hold off and see what my bizarre state does, first. I'm expecting the worst and they never seem to disappoint me! :lol:

But one has to realize that it's NOT just about Amazon. IF these laws succeed and spread to ALL the states, then ALL merchants will either have to comply and either terminate their affiliates OR setup bookkeeping to charge sales taxes on products/services sold in those particular states by those affiliates.

Tell me this ... (for example) IF your online business uses affiliates and you have affiliates in NY are YOU gonna be able to know which of your affiliates are in NY and then able to set their (your NY affiliates) affiliate link up so that it collects the NY sales tax? AND making sure you send those proceeds to NY? :wink:

OR will you be more inclined to terminate your NY affiliates (like Amazon did) so you don't have to have that EXTRA accounting headache?

That's what we as affiliates are now facing. It's easier for the merchants just to teminate the affiliates for those states. It's a bookkeeping nightmare.

IF Amazon doesn't win their lawsuits then all the other states will jump right on the bandwagon and EVERY merchant & affiliate will THEN be affected too.

It certainly BITES, though! heh heh

I have a couple of choices, though ...

1 - MOVE to a state w/o a "nexus tax" law

OR

2 - Incorporate/LLC in another state

NOT planning to move. :lol:

I think I'll go back out and have another beer or three at a patio by the water! Image



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Postby angienewton » Sat Jun 27, 2009 4:53 pm

This whole thing is CRAZY! They are really screwing a lot of people. I'm not in any of those states but no one can guarantee that more states won't be affected.

I need to be sure to not focus on only Amazon which I have been doing. UGH!
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Postby CorpRebel » Sat Jun 27, 2009 5:03 pm

angienewton wrote:This whole thing is CRAZY! They are really screwing a lot of people. I'm not in any of those states but no one can guarantee that more states won't be affected.

I need to be sure to not focus on only Amazon which I have been doing. UGH!


Amazon is THE big name involved right now and they still have an ongoing lawsuit against NY about the constitutionality of their law. But EVERY merchant that still has affiliates in NY have to comply with NY law now. :roll:

Of course, it's gonna be hard for NY to enforce the zillions of small merchants w/ NY affiliates. The bigger ones are easier to follow.

This is sure to get to U.S Supreme Court eventually but not till later this year or next year. Supreme Court goes into recess after Monday. :roll:


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Postby terrapin719 » Sat Jun 27, 2009 7:33 pm

This is just --- ugh! Crap. It makes me so mad that all this is going, between the taxes and the FTC. I can only image how difficult it is for the people living in the affected states. And like Angie said, who's to say that your state or my state isn't next on the list.
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Postby lindastacy » Mon Jun 29, 2009 10:01 am

It's too bad. Like you, I won't lose too much if I lose my Amazon affiliate account, but I'd hate to lose many others.

If too many other states follow suit I wonder if there will come a point when the loss of affiliate sales will be substantial enough for a company to choose to collect the sales tax instead of close their affiliate program?

I can't help but think that this may have bigger consequences for small home businesses that run affiliate programs. The cost of compliance might be too high to implement and the loss of affiliate marketing could be substantial.
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