Affiliate Marketing Becoming An Endangered Species

Monday, July 13, 2009

Affiliate marketing is a major backbone of Mom bloggers.

Through affiliate marketing, Mom bloggers are able to make their blogs profitable; thus compensating them for their hard work and time.

With the current economic crisis that is affecting our nation, more and more shoppers are looking to online resources as a means to finding better deals. In turn, states are seeing a rapid decrease in sales tax collections and are eager to recoup those losses.

"The trouble began in 2008, when New York passed a law requiring Amazon (and other retailers) to collect sales taxes if they had 'affiliates' in the state," writes Chris Null of Yahoo! Tech. Null continues, "New York claimed that having these local affiliates meant Amazon was operating a physical 'nexus' in that state, thus subjecting any sales there to New York state sales tax. Amazon sued the state, and lost."

Other sites with affiliate marketers, such as, decided to instead "fire" their affiliates; thereby eliminating any claim by states of a nexus.

As a results of New York's victory, four other states - California, Hawaii, Rhode Island, and North Carolina - have successfully or plan to institute a plan to collect sales tax on internet sales.

Amazon, one of the internet's largest affiliates, is already responding. Rather than continue their efforts to abolish internet sales tax with the judicial system, Amazon instead opted to terminate their affiliate ties with participants in those states.

Anyone who currently participates in affiliate marketing needs to be keeping an eye on their state's stance pertaining to this issue. And in the meantime, you should contact your Representatives to let them know you do not agree with such measures.

It should be taken into consideration that, as these states continue to create more havoc with their frivolous taxation, they will be creating an even greater number of those suffering income loss; which, in turn, will reduce the number of goods and services sold thereby slowing down even more an almost idle economy.

And I can assure you, just as we have seen throughout history, government won't be able to manage the money made from internet sales no better than they properly allocated funds previously collected. So what will be their next target for taxation and the excuse for doing so?

I agree with Lynn Terry as she states on her ClickNewz blog, "Personally, I applaud the merchants for taking a stand, and the affiliates who have written to their state Representatives regarding the new internet sales tax laws."

Will you take a stand? Or will you set idly by as government once again taxes us for their inability to manage a budget?


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