BOE 232 Tutorial for California Affiliates
I created this video after chatting with my co-workers here at Snow Consulting about how to make filling out the affidavit as painless as possible for affiliates. I hope this helps my fellow CA affiliates!
Read MoreCJU Course: It’s a TAXing Debate: Don’t Cut Me Off
So many states have implemented affiliate nexus tax laws. What does this mean to you as a publisher? What does this mean to you if you are an advertiser who does not have a store in the state? Come listen to our panel to hear how others are managing the challenge. The panel consisted of:
- Jennifer Lovette, Vice President, Client Development, CJ (Moderator)
- Rebecca Madigan, Executive Director, Performance Marketing Association
This was a very informative discussion, even for someone like me who tries to keep abreast of what’s going on in an effort to help however I can. I should note that since CJ (since this info is about a month stale) that the Governor of CA has signed the deal with Amazon and many merchants have welcomed CA affiliates back into their programs.
Personally, I only accepted a few that I really liked before and declined the pushed offers from the others as I already did my link removal on my sites, but I’m the lowest level of affiliate in terms of how much I personally make, so it’s the bigger affiliates who can really make a difference in leveraging their income figures in this fight!
Bullet Point Review!
- Do we want to fight this on a state by state level or on a national level.
- Publishers aren’t mad at the advertisers, they’re mad at the legislature.
- On average affiliates lose 25-45% of their revenue, the state loses income tax revenue, and never collect the sales tax.
- There are a lot of names, which are confusing, but we’ve chosen affiliate nexus law as a general catchall phrase.
- Quill Corp v. North Dakota: advertising does not constitute physical presence or nexus. It became a constitutional issue.
- Passed: California, New York, North Carolina, Rhode Island, Illinois, Connecticut, Arkansas.
- Big box retailers banded together this year to support this tax to try to get Amazon to pay tax. Rumor is they spent 11 million.
- The PMA surveyed California affiliates after the budget bill was signed here:
- 32% are moving out of state or plan to.
- 20% decided to shut down their affiliate marketing efforts altogether
- 35% of lost over half their income when the law passed.
- Amazon & CA have come to an agreement that will eliminate this tax for 1 year – we need to look at it more long term.
- They want to get a federal sales tax solution in place by July 2012. If they’re not successful, the law gets reinstated September 15, 2012.
- Streamline Sales Tax Project. 24 states have agreed to this. Main street fairness act needs to pass to allow SSTP. The chance of this happening isn’t very high.
- Amazon just cut a deal with the state that benefits their own business, so now all these other advertisers who haven’t been involved in the fight or the opposition will be forced to collect tax. Now is the time to fight for yourself & promote the federal solution.
- Board of directors of the PMA are new and still determining whether to fight nationally or state level.
- What can you do?
- Think before you act.
- Make Your Case
- Simplify actions
- Measure twice, cut once. Advertisers need to make sure you’re doing what’s best for your business before making a knee jerk decision to cut affiliates. Talk to a lawyer if you have to.
- There are ways to work together, identify your threshold of risk.
- Taxes will always exist, think long term when making decisions that are going to affect your business.
- No matter what side you’re on, WE can make a difference
- Things change quickly so don’t give up!
If you were an attendee of CJU and registered for their (awesome!) CJUniverse network, you can download a PDF of Jennifer’s slides here.
Read MoreThinkTank Remix 2011: Quinn’s Tax Law & FTC Compliance
You might be asking yourself “Wasn’t ThinkTank, like, 6 months ago?” Well, yes, almost… ThinkTank did take place at the end of May. I’d taken these notes, but never got around to posting them. So, now that I’m rededicating myself to the blog, here they are for your enjoyment!
- We’re pissing off Walmart as they’ve made it their goal to “take down Amazon”.
- Sacramento bill sponsors had a press conference Wednesday as a direct result of our meetings on Tuesday. They’re scared.
- The PMA blog is all facts, no opinion or speculation because we’re being watched.
- It definitely helps to make a relationship with your state reps. It will help us win the war.
- There’s a waiver if an affiliate signs an affidavit that they only advertise online. NY affiliates can give ShareASale their docs to assist getting into programs.
- In other states there’s no compromise, but that’s okay for Rhode Island & North Carolina as we’re aiming for repeal.
- There are stories from North Carolina about the state going after people under the laws.
- ShareASale is attempting to keep their merchants in the loop but there’s always the chance they may be late to the game.
- In Arkansas they included language to apply the law to the previous 12 months.
- In some states you can trip nexus just by sending staff to conferences for a specific number of hours or exhibiting with a booth at a trade show.
- You’re not going to give them an idea… They already know, so go take them on.
- Some states are in support of a federal streamline tax but that’s been in the works for 10 years & isn’t necessarily close to anything.
- It’s different in certain verticals, but generally it’s supported when a merchant decides to just charge tax.
- Merchants doing local deal stuff create nexus under existing laws as they accept money & act as a sales agent.
- As an affiliate, you need to state that you’re getting paid.
Thanks, Pro-California Merchants
Seriously, thank you to all the merchants who are based in California that are reaching out to affiliates dropped from other programs to offer their services to get affiliates up & running with their programs. And especially thanks to out-of-state affiliate merchants who are working WITH California affiliates to get through this law and not make the affiliates suffer.
Since I’m keeping a list of merchants dropping California affiliates, I thought it only fair to keep complimentary lists of merchants KEEPING California affiliates. Some of these merchants already have traditional sales tax nexus in California due to physical retail stores. Others have warehouses or corporate offices located within the state. Some, it’s important to note, are services which are not subject to sales tax at all. And still others – in the hardest situations – are choosing to make adjustments internally that will allow them to continue working with their California-based affiliate partners. If you’re a member of these programs, shoot the affiliate manager a hearty thank you for going to bat for their affiliates!
Please let me know if I’m missing any deserving merchants who have reached out to affiliates in California to support them. This list was last updated at 4:25 PM PDT on 8/1/11.
Keeping California Affiliates:
- 4Checks.com
- AC Lens
- AllPosters.com
- Art.com
- Barnes & Noble
- Baseball Rampage
- Best Buy
- Betty Mills
- Biggerbooks.com
- Blurb
- Business Checks
- Buy.com
- BuyCostumes.com
- CampSaver.com
- Carousel Checks
- CCBerries.com
- Checks Unlimited
- Cherry Moon Farms
- Christianbook
- ChristianGear.com
- Clickinks.com
- CPO Outlets
- DeepDiscount.com
- Deluxe
- DesignForYourWine.com
- Drugstore.com
- eBay
- eCampus.com
- eHealth Insurance
- EverythingFuriture.com
- EverythingOfficeFurniture.com
- Expand2Web Small Business WordPress Theme
- Extra Value Checks
- Fanatics
- GearForGoldens.com
- Girly Checks
- GreekGear.com
- GuidoGear.com
- Guitar Center
- Half.com
- Hancock Fabrics
- HappyBidDay
- Homestead
- Inkgrabber
- JoAnn Fabrics
- JustIrishStuff.com
- KelleyFurniture.com
- Kmart
- Knetbooks.com
- KnowEm
- Kodak Gallery
- Koyal Wholesale
- Layla Grayce
- Lot 26
- Loxly Gallery
- Makais.com
- MilitaryGearUSA.com
- MountainReservations.com
- NationalityShop.com
- Netflix
- NewEgg.com
- Office Depot
- Office Max
- Oneida
- PartyBeans
- Personal Creations
- Petco
- PetSmart
- Pets Warehouse
- ProFlowers
- PsPrint
- RavenTools
- RedEnvelope
- Ring Central
- Sears
- SellBackBooks.com
- Shari’s Berries
- Sheet Music Plus
- Shoe Shopping Spree
- Shopping.com
- Softball Rampage
- Spoonful of Comfort
- Surf Fanatics
- Target
- Tax Brain
- Tea Collection
- TheClymb.com
- TheFurnitureParadise.com
- Tiny Prints
- TShirtHub.com
- Viator
- Walmart
- Waxing Poetic
- WicksWorks
- WyzAnt
Thanks for Nothing, Jerry Brown
Gov. Jerry Brown signed the budget today, which included affiliate nexus language. So, there goes a substantial part of the income of 25,000 small business in California. The Performance Marketing Association reported it earlier today. Executive Director Rebecca Madigan is in Sacramento today attempting to do what she can to benefit Affiliates.
Unfortunately one of the bills that was included also included very vague language about even doing business with California based vendors, hosting companies, etc, so effectively this affects not just the affiliate marketing industry in California, but all small businesses.
Way to go, Jerry, shoot California in the foot.
Luckily for me, I do not make the bulk of my income from being an affiliate. My ventures into acting as an affiliate have been mostly for the learning experience and to try to offset the costs of domains and hosting for my various web-based hobbies.
This does impact my husband’s site, RailroadRedux.com, as he has a large Amazon widget recommending different model railroading books, and impacts my site GirlScoutGuide.com as Fabric.com exclusively carries Girl Scout licensed fabric.
Affiliate Programs Dropping CA Affiliates (Updated As Of 12:45 PM PDT 7/26/11)
- 6pm.com
- 1-800-PetMeds
- Adorama
- Amazon.com
- Amerimark
- Backcountry
- Bag.com
- BagsBuy.com
- Bargain Catalog Outlet
- Barware.com
- BedBathStore
- B&H Photo
- Boden
- BookCloseouts.com
- BrickHouse Electronics
- Brylane Home
- BuildDirect.com
- Cabela’s
- Calvin Klein Jeans
- Camp Saver
- Candelabras.com
- CD Universe
- ChristmasCardsDirect.com
- CKU
- Collections Etc.
- Compact Appliance
- Costume Craze
- CreateForLess.com
- CSN Stores
- Cymax
- Dermadoctor
- Dr. Leonard’s
- Endless.com
- Eurosport
- Fabric.com
- Fingerhut
- FootSmart
- GAIAM
- Garden.com
- Gardeners Supply
- Gettington
- HalloweenCostumes.com
- Hayneedle Stores
- Herroom
- Jessica London
- KingSize Direct
- K. Jordan
- Luggage Online
- Maryland Square
- MetroKitchen
- Movies Unlimited
- MyFavorite Shoe Store
- OneStopPlus
- Overstock.com
- Overstock International
- PC Connection
- PhotoCardsDirect.com
- Potpourri Group
- Powells.com
- Roaman’s
- Shindigz
- Shoe.com
- ShoeBacca
- ShoeBuy.com
- ShopBop.com
- ShoppersChoice.com
- Silkpalms.com
- SmartBargains.com
- Spiritline
- StumpParty
- TABcom
- theWineEnthusiast
- ThinkGeek
- TimeForMeCatalog
- Total Gym
- Woman Within
- Woot.com
- Zappos.com
I’ll keep this list up to date, so if you are a CA affiliate and get dropped by a merchant not on this list, please let me know.
Edited to add: when my husband came home and I told him to remove his Amazon widget, he decided to not just remove it, but to replace it with a message to his site’s visitors telling them why his book recommendations were removed and urging people not to shop with Amazon.com in support.
Read MoreDue to recent changes in California law which negatively affect affiliates, and the fact that Amazon dropped all affiliates who reside in California, I will no longer be featuring deals from Amazon.com. I strongly recommend that you no longer use Amazon.com or any of their services due to the poor way they treat the people that advertise for them.
Faces & Voices behind the Affiliate Nexus Tax Mistake
Recently I was asked to come to San Francisco and participate in shooting a video to help convince legislators here in California that passing a nexus tax law similar to those passed in New York, Rhode Island, and North Carolina would be detrimental to the state economy, rather than positive. Unfortunately I fell ill at the last minute and was unable to participate, but I recently see that the video the Performance Marketing Association put together is available online and really puts some faces to the issue.
I hope this will help legislators reconsider their views on the advertising tax and consider it’s impact on 25,000 small businesses here in California. Please take a look at the video and do what you can to share it. If you’re sharing on Twitter, please use the hashtag #noadtax.
They’ve already been thanked once, but I’ll send out another big thanks to those that spared their time and opened their offices to the shooting of this short video:
- Rebecca Madigan, Performance Marketing Association
- Loren Bendele, Savings.com
- Alan Gray, Newsblaze.com
- Kevin Johnson, Ebates.com
- David Lewis, Cashbaq.com
- Lisa Picarille, LisaPicarille.com
- Eva Rosenberg, TaxMama.com
- Brook Schaaf, Schaaf-Partnercentric
