I had the pleasure and pain of driving up to Sacramento yesterday to sit in on the hearing for AB 178, which I’ve talked about before putting California affiliates in jeopardy.  Lisa Picarille and I hopped into my car and made the drive up, and about 10 minutes away from our destination, we get the news that the hearing had been postponed.  The bill has been changed to a two year bill.  What does this mean, exactly?

Believe it or not, I couldn’t find a sufficient actual definition for what a two year bill is online, so I can only pass on what I was told in basic layman’s terms, which may be better anyway.  Basically what this means is that the hearing has been postponed until January, when it will be up again to be heard in hearings.  We were told by several seasoned lobbyists that if it’s not heard in January, this bill in this current incarnation will be dead.  However, the issue won’t necessarily go away.  We will need to keep an eye out for other bills to make sure language isn’t shoehorned into other bills that could affect affiliate livelihood and tax nexus, and we also have to pay attention in June when budgeting starts to make sure no strange budget items that could affect nexus show up.

This is a small victory and California affiliates can certainly breath easier for awhile, but it’s not over yet.  We’ve won the battle but the war rages on.  Of course, there’s a lot of blog coverage on the happenings of yesterday, so check out their points of view as well:

• Mr. Lewis Goes to Sacramento – David Lewis
• Calif. AB 178 on Hold for Now – Lisa Picarille
• California Hearing Postponed – that’s a good thing! – Rebecca Madigan
• No Hearing for California AB 178 – Shawn Collins
• Commission Junction’s Internet Retail Tax News

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Well, I think many people attending this session were expecting the topic to be heated, but l’m not sure they were expecting some of the venom that seemed to be in the room.  Speaking for myself, I certainly didn’t.  Originally there was only supposed to be one panelist fielding questions, but since 4 out of 5 working group leaders were in attendance, they were also recruited to speak.  So ultimately the panel consisted of:

• Rebecca Madigan, Performance Marketing Alliance
• Sam Harrelson, Publisher, Cost Per News
• Brook Schaaf, Schaaf Consulting
• Brad Waller, VP Business Development, AdJungle.com
• Peter Bordes, CEO, MediaTrust

Guns were slinging!  Unfortunately there’s not many bullet points to be had, but here you go.

Bullet Point Review!

• PMA is in germination phase – not a real entity yet.
• Why start now?
  • Misinformation & lack of representation.
  • Legislation.
  • Lack of transparency.
  • Maturity of industry.
• Formation process still underway.
  • Interviewed over 60 industry leaders, Formation Advisory Board voted in by 100 peers.
  • Working groups of 45 volunteers.
  • Working groups make recommendations on formation.
  • FAB 11 ratifies formation proposals (click here to see members).
• The working group committees are Scope/Objectives (headed by Sam Harrelson), Governance (Brook Schaaf), Fundraising (Peter Bordes), Membership (Durk Price), and Operations (Brad Waller).

Points (or other observations in this case) brought up during the Q&A

• Right off the bat the questions were hostile.  There’s animosity about the PMA using the NY Tax situation as a launching point for formation despite the fact that they can’t do anything to help.
  • Essentially there’s nothing the PMA can do since they’re NOT a fully formed organization, no matter how much they want to help.
• Rebecca acted as moderator and moved the conversation on after almost 20 minutes of hostile banter.
• The PMA blog as been quiet because the people in working groups have had their heads down working on things without much to report at this point.
• The term “Performance” has been used over “affiliate” because it is more inclusive of the larger base of members within the industry.  Inclusive of a lot more relationships than just the affiliate – merchant relation.
• The PMA has a very similar model as a chamber of commerce but the scope is still being set up.  They are looking at the chamber model in forming things.  Mostly they want to improve visibility & credibility.
• Rebecca was questioned as to why she didn’t attend the meetings in Albany that the NY affiliates had since she’s actually the only paid member.  It was decided that there was no reason because it would have been redundant and she can’t represent an organization that isn’t formed and doesn’t officially exist.
• They were asked why they divorced themselves from ABestWeb after the controversy, to which they responded that they didn’t divorce from it BUT once a particular few threads got ugly and became increasingly unprofessional they just stopped participating in those threads.
• There’s no conspiracy regarding Rebecca’s involvement – Anik Singal of Affiliate Classroom generously donated her salary for a year and she’s just being paid to “corral cats” and help form the organization.  Her comment was that if she weren’t paid for this she’d have bailed long ago based on the assumptions about her involvement and what she’s had to deal with.
• An affiliate asked how they can be assured that the PMA won’t be overtaken by large company sponsorhips and forget the little affiliate?  The affiliate industry is it’s own little ecosystem and the heart of it is the average affiliate.  They’ve been very hypersensitive to the issue to ensure that affiliates are included.

It seems that there’s lots of confusion about the organization – or lack thereof – and hopefully the Q&A has taken things in the right direction.  Perhaps Q&A wasn’t the right moniker.  Maybe Suggestion Session or Feedback Forum might have worked better.  It was disappointing to see one of the most vocal critics of the PMA – ABestWeb founder Haiko de Poel Jr – leave the session half way through in apparently disgust.  I hope that future discussions going forward will be a bit more productive than the session in Boston.

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After running to the bank to take out money for bridge toll, heading west towards the big scary city, and rifling through my car & wallet for change for the meter while praying that the meter maids were taking a day off, I finally made it into the June Bay Area Affiliate Managers Coalition meeting, this time hosted graciously by Real Networks. As an aside, I like their building… older, brick, kinda funky and unique but still professional.

Last time I did a video because it was my first venture over there and I had a lot to say. I was happy to receive some kudos on it from BAAMC organizer Michael Brucker. We had some special guests at this meeting… Lisa Picarille from Revenue Magazine came over and Brook Schaaf from Schaaf Consulting flew up from LA just for this. Aren’t we special?

I was going to write a good long post about it, but it seems Lisa in her diligence as a journalist has beat me to it! So here’s her take at RevenueToday.com. She mentions a few other special guests that attended the meeting, but I didn’t see them (and yes… I’d recognize them!) so maybe they were on the phone listening in… I did arrive a touch late.

So, some notes not mentioned from my take. It was nice to finally meet Lisa in person, especially after subbing for her that once on Affiliate Thing. Very gracious…although I have to tell you, it’s totally surreal sitting in a room looking at a person speak that you listen to every week without an image in your head. Strange lol. She was surprised that I’d had time to come to the meeting given how busy I usually am, which prompted me to mentally review how busy I must sound on Twitter and this here blog without actually intending it!

Also said hi to Karen Garcia of GTO Management who came to the meeting directly from SFO – what a trooper! And had a nice conversation with a fellow affiliate manager who’s used PsPrint a lot in his former life of being an event promoter and loves us! Always great to hear!

Brook talked about the up-and-coming Performance Marketing Alliance (PMA), which got a lot of people in the room revved up. We also talked at length about the NY affiliate tax and how we wish the networks would get more involved. What’s definitely clear is that there’s a lot of confusion on how we’re effected as managers and the programs we represent. A vague law will only vaguely be enforced, NY!

Incidentally as a side note, the PMA launched their blog this week and today Rebecca Madigan posted their plan of attack.

We also talked a bit about some miscellaneous things like video widgets and the like. Since most of us in the room have our programs through Commission Junction, we collectively wish they’d buck up on offering some more interesting and innovative creative options, like widgets. One opinion was that video is pretty good for buzz, but general consumers never think to click on the video so it doesn’t convert as a sales tool. I think the jury is still out on video as a traceable seller like a banner ad.

That’s the meat & potatoes of it, really. Our next meeting should be sometime in August. And I’m sure you’ll be happy to know that I managed to escape parking-ticket free!

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