ASE09 Session: Advertising Tax Impact (Trisha’s Take)
As you noticed, Dominic already posted his notes on the session, but here’s mine! Session Description: Discussion on the Advertising Tax by industry leaders that have played a key role in organizing industry advocates and educating legislators on the impact of state tax nexus legislation. The panel consisted of:
- Brian Littleton, President / CEO, ShareASale.com (Twitter @Brianlittleton) (Moderator)
- Karen Garcia, Partner, GTO Management (Twitter @karengarcia)
- Beth Kirsch, Volunteer, Performance Marketing Association (Twitter @bethkirsch)
- Melanie Seery, President, Affiliate Voice (Twitter @mellies)
I thought it was well done. Unfortunately there weren’t nearly as many people there as should have been. Hopefully they’ll read this and know that they need to get informed before their business is blindsided with these tax issues.
Bullet Point Review!
- The use tax system really doesn’t work right now, hence why states are looking to tax online retailers.
- All this involves Nexus.
- If you make a commission on a sale, you’re affected. Period.
- There’s a lot of misinformation out there – we’re trying to inform reporters enough to make them care about what’s really happening.
- There’s a different between an affiliate company and affiliates, which is somewhat difficult to properly explain to legislators.
- This is putting thousands of individuals out of business.
- We need to keep politics out of it – it’s not a Democrat or a Republican thing.
- SSTP (streamline sales tax project) not going to save us.
- It’s GOING to happen – don’t think you’re safe.
- This year it’s been introduced in 9 states – stopped in 7 of 9 (not RI or NC)
- Be sure to work with like minded people to get things done.
- It helps to have an internal advocate who knows the system’s ins & outs (a lobbyist or lobbying organization).
- The viral-ness worked well to defeat the bills.
- The CA bill would have passed had we not shown up, so it makes a BIG difference to stand up and help and make your voice heard.
- When talking to legislators, there are a few things to remember:
- The term “affiliate” is very confusing, but they understand advertising and small business owner.
- Don’t say you’re going to move out of state – if you do, you’re no longer their problem, so they don’t care.
- Keep your analogies simple – don’t get too technical or use jargon they won’t understand (CPA, PPC, SEO, etc).
- There are ways around it in New York
- First you have to meet the minimum sales threshold, so if you don’t make that you’re not affected.
- You can rebut the nexus.
- They haven’t yet found a way to rebut the nexus in Rhode Island and it’s too early to tell for North Carolina.
- Merchants can just charge tax to keep affiliates – but it is something they have to start working on NOW in the back end to avoid being blindsided.
- Affiliates need to prepare your business for it and keep lines of communication open.
- Solutions: retain a sales and use tax attorney and understand the law as best you can.
- DO NOT: incorporate your business in another state, use a false address, follow advice of someone who’s unlicensed, follow advice of a lawyer for another party, or try to circumvent the law. Working within the law is your best option.
- Being shady brings a bad name to the industry – your rep and the industries rep is under scrutiny
There was no time for a Q&A session because of all the awesome information they jam packed into that session. It was really great and I’m still just sad to see that more people weren’t there.
Please help by spreading the word about what’s being referred to as the Advertising Tax! And for your pleasure, here’s the presentation:
Read MoreASE09 Session: Advertising Tax Impact, Accomplishments and the Future
Guest Post by Dominic Fawver.
Session Description: Discussion on the Advertising Tax by industry leaders that have played a key role in organizing industry advocates and educating legislators on the impact of state tax nexus legislation. The panel included:
- Brian Littleton, President / CEO, ShareASale.com (Twitter @Brianlittleton) (Moderator)
- Karen Garcia, Partner, GTO Management (Twitter @karengarcia)
- Beth Kirsch, Volunteer, Performance Marketing Association (Twitter @bethkirsch)
- Melanie Seery, President, Affiliate Voice (Twitter @mellies)
This session was very informative and gave a lot of information concerning the current problems affiliate marketers are having with some of the new tax laws, or rather the new interpretations, of the tax laws. One of the most important facts given was that the definition of “Nexus” has been recently changed, or rather updated. For a business to have Nexus, they must by physically present in the state. The change in definition holds that affiliates living in a state count as Nexus in that state. This is important because it requires all of the merchants to charge their customers the state sales tax. The issue is not that the companies should charge this sales tax, but that it is often cheaper for them to drop their affiliates in whichever states are affected, instead of adding the ability to charge the sales tax on their site.
The chief purpose of this session was to bring people up to speed on the legislation that has been put into affect or has been defeated in several states such as New York, Hawaii, and California. This is important because it will soon affect any state that charges sales tax, which is most of them.
From the standpoint of someone new to the industry this was a very important session to attend, as it helped to bring me up to speed, so to speak, with some of the major issues which are currently impacting Affiliate Marketing.
Read MoreRecap of Lobby Day Against CA AB 178
Yesterday I had the privilege of accompanying 9 of my fellow affiliate marketers to the California State Capitol building in Sacramento to help lobby legislators against the passage of California Assembly Bill 178.
I have to say on a personal level, this was my first trip to the Capitol, and the most involved I’ve ever gotten with politics in general. It was a pleasant experience overall. And yes, I got a little “star struck” for lack of a better term walking by Gov. Schwarzenegger’s office. I had to fight the urge to knock on the door and demand court!
Back to business. 10 of us were able to make it up, some coming from Southern California. We had appointments set for almost all day, so we split into two groups so we wouldn’t run the risk of running late or overcrowding offices. Our group had a few lack luster meetings with staff that really didn’t understand what we were talking about or weren’t really familiar enough with the bill to care yet. But we also had some good meetings with other staff members who were incredibly receptive to our message and offered us a lot of advice regarding how to go about the lobbying that we’re doing. Some even went so far as to call other offices we didn’t already have appointments with and help to make us appointments.
It was equal parts optimistic and pessimistic. While it looks like it’s going to be incredibly difficult to outright kill the bill because of the eagerness of the state to collect any income possible. Focusing on the message that it’s best to keep the bill as broad as possible in the definition keeps it as fair as possible. In a perfect situation the Streamlined Sales Tax Project to require the collection of sales tax across every state would make the playing field as fair as possible, but that’s already been in the works for almost a decade and doesn’t look promising to be enacted any time soon. So in the meantime, we do what we can.
You can still do what you can. Now that we’ve taken meetings at the capitol, feel free next week to take meetings in your district in California. The members will be on vacation and potentially available at their district offices. Staff will not be on vacation and will still be in Sacramento working, so if you weren’t able to join us under such short notice, feel free to schedule your own appointments and talk to the Assembly Members on the committee for Revenue and Taxation. The meetings were generally short, 15-20 minutes of a staff members’ time. We were able to leave behind the letter that Linkshare wrote in opposition along with the opposition letter from the Performance Marketing Alliance, co-signed by over 300 affiliates.
If you’d like copies of these documents for your own leave behinds materials and have the intention of taking a meeting either in the district offices or in Sacramento, please leave a comment and I’ll see how we can get those materials to you. Here’s information on the committee members to reach out to. If you live in their district, all the better (they prefer to hear from constituents whenever possible).
- The Committee for Revenue and Taxation: (916) 319-2098
- Charles M. Calderon (Chair) – Dem. 58th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0058, Phone (916) 319-2058
- District Office: 13181 N. Crossroads Pkwy, Suite 160, City of Industry, CA 91746, Phone (562) 692-5858
- Chuck DeVore (Vice Chair) – Rep. 70th District
- Sacramento Office: State Capitol Room #4102, Sacramento, CA 95814, Phone (916) 319-2070
- District Office: 3 Park Plaza, Suite 275, Irvine, CA 92614, Phone (949) 863-7070
- Jim Beall, Jr. – Dem. 24th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0024, Phone (916) 319-2024
- District Office: 100 Paseo De San Antonio, Suite 300, San Jose, CA 95113, Phone (408) 282-8920
- Joe Coto – Dem. 23rd District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0023, Phone (916) 319-2023
- District Office: 100 Paseo De San Antonio, Suite 319, San Jose, CA 95113, Phone (408) 277-1220
- Diane L. Harkey – Rep. 73rd District
- Sacramento Office: State Capitol Room #4177, Sacramento, CA 95814, Phone (916) 319-2073
- District Office #1: 29122 Rancho Viejo Rd., Suite 111, San Juan Capistrano, CA 92675, Phone (949) 347-7301
- District Office #2: 300 N. Coast Hwy, Oceanside, CA 92054, Phone (760) 757-8084
- Fiona Ma – Dem. 12th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0012, Phone (916) 319-2012
- District Office: 455 Golden Gate Ave., Suite 14600, San Francisco, CA 94102, Phone (415) 557-2312
- Jim Nielsen – Rep. 2nd District
- Sacramento Office: State Capitol Room #6031, Sacramento, CA 95814, Phone (916) 319-2002
- District Office #1: 280 Hemsted Dr., Suite 110, Redding, CA 96002, Phone (530) 223-6300
- District Office #2: 1527 Starr Dr., Suite U, Yuba City, CA 95993, Phone (530) 751-8351
- Anthony J. Portantino – Dem. 44th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0044, Phone (916) 319-2044
- District Office: 215 N. Marengo Ave, Suite 115, Pasadena, CA 91101, Phone (626) 577-9944
- Lori Saldaña – Dem. 76th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0076, Phone (916) 319 – 2076
- District Office: 1557 Columbia St., San Diego, CA 92101, Phone (619) 645-3090
Cribbed Content for March 6th
I haven’t had the chance to do very many of these during February… the month was filled with birthday celebrations, a vacation, and a lot of Wii in the evening since I’ve been strangely obsessed with Guitar Hero and Animal Crossing: City Folk. But since I’ve been back from vacation I’ve seen some great stuff, so I want to share.
Forgive me, some of it will be a bit out of date.
- Geno Prussakov put together a great list of affiliate marketing events in 2009.
- California is looking into a tax for online sales. Scott Jangro has written an open letter to the California outlining why it’s a bad idea. I am going to take his advice and grab the letter to send myself as a resident of California.
- Read the full California Assembly Bill 178 and contact your representatives to explain why this is a bad idea for affiliate marketers in California!
- 20/20 contacted the Performance Marketing Alliance for some background on affiliate marketing for a series they’re doing on the proliferation of work-at-home schemes. It’s good to see that they’re able to do some positive PR for the industry already… very promising since they’re off to a slow start.
- I wrote another guest post for Marketing Pilgrim, this time on The Search Engine Known as Twitter.
- If you’re at all interested in reading about my rambles about my Caribbean cruise vacation, check out my Posterous blog.
Affiliate Marketing Fanatics Episode 1: Almost a Fail
Podcast: Play in new window | Download
So I’ve returned rejuvenated from my vacation and I’m here to announce that I’ve started a new podcast with Michael Buechele of 11|15 Media called Affiliate Marketing Fanatics. In the podcast, hosted generously by GeekCast.fm, we discuss different tools and aspects of affiliate marketing from both the publisher perspective (Mike) and the affiliate manager perspective (mine).
We recorded our first episode just before I left for vacation and Michael worked on the editing and posting while I was gone… unfortunately as we’re just learning this stuff, there are some strange audio issues and the very end got cut off. We were using Pamela to record over Skype, so if anyone out there has any suggestions to fix them, I’m all ears.
In our first episode we discuss Zemanta, the BAAMC, RingRevenue, the PMA, and Facebook. So please, go check it out and comment and let us know what you think!
Read MoreCommission Junction University – Day 1
I’m down here in lovely Santa Barbara for Commission Junction University, and day one is in the can. The weather has been nice…although living in California I’m generally used to this weather, but being in the Southern end of the state there’s a distinctly different feel that I can’t quite put my finger on. But I enjoy it.
I flew from Oakland to Los Angeles on a puddle jumper, and from Los Angeles to Santa Barbara on a pack of gum. Between flights and layovers and cab rides, I arrived at my motel at 12:15am. The room is your average motel fare: 70’s floral bedspread, translucent yellow cords on the lamps, inmate furniture. The room also has a mini fridge, microwave, nicely sized TV, free wifi, and a surprisingly comfortable bed & pillows – not too shabby for $77/night. This makes me glad I’m staying at a real hotel for Blog World Expo this coming weekend.
Because of the high cost of cab fare ($25+), once I got the conference hotel I didn’t want to leave until the end of the day. I ran into Lisa Picarille and Wade Tonkin almost immediately in passing after I registered and headed to the first session, which I’ll cover later. Jeremy Palmer from Quit Your Day Job lead the first “course” as CJU calls them, and Olivier Chaine from Magnify 360 led the second. On a personal note, I read his name in the program and knew the pronunciation would be something like “o-live-e-ay shayne” and was confused when the emcee pronounced it very phonetically (olive-er chain). I was disappointed in CJ when Olivier pronounced his own name at the end of his session much like I’d imagined it was properly pronounced…if you’re going to introduce someone, learn how to pronounce their name.
I digress. Both courses were informative and well done, and I’ll be posting a bullet point review of both later on. After the courses were done I took a quick break and then headed out to the CJU Expo, a small area of tables nicely held outside under umbrellas that more closely resembled the Meet Market at Affiliate Summit than your typical trade show. It was mostly merchants and different CJU programs with tables, with the exception of an OPM (Schaaf Consulting), a couple affiliates (SurfMyAds.com), and a table for the Performance Marketing Alliance.
It’s a good thing I saw that PMA table, because it made it easy to run into some familiar faces in the form of Connie Berg & Brad Waller. Also was able to say hello to Michael Brucker from RingCentral at their table, one of the organizers of the BAAMC whose quarterly meetings I attend. (By the way if you’re an affiliate manager with a company in the SF Bay area interested in getting involved and possibly hosting about 20-25 ppl for lunch some day, let Michael know).
After the expo it was zoo time with the welcoming event being held down the street at the Santa Barbara Zoo. As much as I wanted to go, my phone was practically dead for some reason and my stomach was a bit upset, so I opted to head back to my motel. Tomorrow is a day full of sessions that look pretty good, and a keynote from Guy Kawasaki…who I think may literally be giving me the nifty orange Alltop shirt off his back afterwards. More about that if/when it happens 😉
