Thursday, August 16, 2012

Another One Bites the Dust!!!!

ThinkGeek Affiliate Newsletter
Big News

DUE TO NEXUS TAX LEGISLATION IN THE STATE OF PENNSYLVANIA, WE WILL BE REMOVING ALL PENNSYLVANIA AFFILIATES FROM OUR PROGRAM.

We will issue this expiration 7 days from Septemeber 1st. Once the expiration is issued, it will take 7 days for the expiration to take effect.

We appreciate your past partnership and support. We hope we will be able to work together again as the tax legislation on the state and national level evolves.


It is really as stinking shame that Pennsylvania is so greedy that the have to steal the ability to earn an income from the many people in Pennsylvania that are deriving 100% of the income from affiliate marketing.  I have sent letters to every senator and congressman in Pennsylvania letting be known my opposition to this worthless piece-of-crap legislation that will only server to cause the Commonwealth of PA to actually LOSE money.  Just more proof that our country and our states are run by people who have no common sense or sense of responsibility to their constituents.

Tuesday, August 14, 2012

From Forbes Online

  1. Touchboards.com President Richard Wagner said, “This act should be called the States Need More Money ACT. If at the federal level any new tax collected or deduction repealed is called a tax increase, then this is certainly the biggest tax increase on the middle class in over two decades. On a positive side this should create jobs. If this passes the states will hire thousands of auditors to call on and investigate small Internet vendors across the country.”
  2. Bolingbrook, Illinois-based Power Equipment Direct Founder and CEO Jon Hoch argued, “The Main Street Fairness Act has little to do with Main Street or fairness. Small retailers have every right to build e-commerce sites and start competing today. It’s actually about Big Boxes lobbying politicians, complaining that they aren’t big enough already.”
  3. El Segundo California based pcRUSH.com Founder and COO Frank Khalili says, “By the very nature of the model, Internet Retailers support an enormity of jobs and tax revenue. For example, when factoring the cost of shipping (which in itself goes a long way in leveling the playing field), there is an entire machine that creates jobs, pays fuel taxes, state and local taxes, payroll taxes, and in general contributes mightily to the coffers of all communities involved in the transaction.” Quoted from Forbes Online

Tuesday, August 7, 2012

Isn't It Ironic That................................

Isn't it ironic that one of the largest supporters of Nexus Tax laws is ALSO one of the largest corporations that attempts to get out of paying THEIR fair share of taxes:

http://walmartwatch.com/wp-content/blogs.dir/2/files/pdf/tax_avoidance_schemes.pdf

Another One Down the Tubes

Krups

Pennsylvania Affiliates
Dear Pocono Foothills Trading,

Due to the recent passage of tax laws regarding nexus involving online affiliate
publishers in the state of Pennsylvania (legislation known as Sales and Use Tax
Bulletin 2011-01) we will be terminating our relationship with any publishers doing
business out of the state of Pennsylvania. We sincerely apologize for the abrupt
interruption in our relationship and we hope to reinstate our valuable partnership
in the future.

Your publisher account will be expired as of August 31, 2012, and we will no longer
pay commissions for sales referrals after that date. All sales made prior to August 31, 2012,
will be credited to you and paid out in accordance with our regular schedule. Please accept
our apologies and we appreciate your understanding. Hopefully in the future, these laws will
be reversed in order to keep the networks diversified and growing.
Should you have any questions please feel free to contact us at
affiliates@krupsonlinestore.com.


Best Regards,



Saturday, July 21, 2012

Protect Yourself by Diversifying

Listen to one professional affiliate marketer explain the importance of diversifying your income streams.  Putting all your eggs into one basket can be financially devastating if tax laws are arbitrarily changed.  If you are interested in affiliate marketing, I highly recommend that you follow Lisa on YouTube, because she offers a lot of useful tips on how to succeed and avoid the pitfalls.

Thursday, July 19, 2012

Big Box Store Hypocrycy

It has been widely publicized that the institution of Affiliate Nexus Tax Laws was instigated by big box stores, the biggest of all proportudly being the leader of the pack.  I won't mention any certain names, but I think most people can guess.  Now, oddly enough THAT particular big box store has it's own affiliate marketing program and does a significant amount of online business.  I belive this is just a move for this particular big box store to attempt to eliminate all of their online competition, Amazon in particular.

Unfortunately, way before this law has even been enacted, some advertisers have been dropping their PA affiliates.  I received this e-mail from one of the advertisers I was promoting early in 2012, and I had even sold thousands of dollars worth of merchandise for this particular retailer on E-Bay BEFORE I was even in their affiliate program.
Due to Pennsylvania implementing Affiliate Nexus Tax Law, we are compelled to unfortunately terminate this program for Pennsylvania-based Publishers.
As a result, we will terminate contracts with all Pennsylvania Publishers that are participants in the XXXXXXXXXXXX Affiliate program as of January 1, 2012. As of the termination date, Pennsylvania residents will no longer receive commissions for sales referred to XXXXXXXXXXXX .com or XXXXXXXXXXXX .com. Please be assured that all qualifying commissions earned on or before January 1, 2012 will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of Pennsylvania. If you are not currently a resident of Pennsylvania, or if you are relocating to another state in the near future, please contact us for reinstatement into the XXXXXXXXXXXX Affiliate Program.
Regards,
XXXXXXXXXXXX Affiliate Team
PA affiliates, contact your state representatives and let's get this law buried.  http://www.house.state.pa.us/

Great Quote

A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent. — Gen. Douglas MacArthur

Wednesday, July 18, 2012

Will the Rug Get Pulled Out From Under PA Affilates

I can't help wondering if the PA government will continue with this foolishness of trying to impose an Affiliate Nexus Tax Law.  I've spent many long hours trying to iron out the kinks and bugs in how to write blogs that earn a little income, finally with some success.  Now, I worry that come September the rug will get pulled out from under me and all my work will be for naught.  I had dreams earning enough extra money to be able to pay off my kids' student loans and maybe have a little income to fall back on during my retirement years without having to get a part-time job cleaning toilets for some rich Malibu Beach actor (or maybe even someone poor, but with more money than me!!!)

Hopefully, some PA politicians will read this blog and maybe their votes will be swayed to overturn this ridiculous bill.  Maybe there aren't as many affiliates in PA as there were in California, but I'm sure that there are some that are relying in part or all in the income they receive as affiliate marketers.  Without that income, what do they do?  It isn't exactly like there is a booming job market in America at the moment.  Every month I watch CNN and see the reports of big a per cent of the population is on unemployment, and I hear stories about people who have been looking for jobs for a whole year or more.  I personally know people who have had to move out of the housing and move back in with their parents (How does it feel to have to go to your parents and tell them you can't pay your rent or mortgage?).  What happens with their kids when they get sick and they have no jobs, and therefore no benefits such as healthcare coverage?

Affiliate marketing could be a way out for some of those people that would keep them off food stamps and welfare roles, and give them a positive image of themselves.

So, let your lawmakers know how bad this proposed law is going to be for a lot of people, and how it is even going to take away potential for people who can't find a regular job.  If our lawmakers don't bend to our well, remember, we have the right to vote and we can vote them GONE!!!!!

Friday, July 13, 2012

The Affiliate Tax War: Bad For Everyone's Business

The Affiliate Tax War: Bad For Everyone's Business



The Amazon Affiliate program has benefitted webmasters and Amazon alike: affiliates get revenue, and Amazon gets product-specific deep links, along with strong editorial content to socially encourage purchase and use of other Amazon products, such as Kindle readers and books.
California is only the latest victim in the affiliate tax wars: Amazon has been forced to cut affiliate ties with Texas, Colorado, Connecticut, Arkansas, Illinois, Hawaii, Rhode Island, and North Carolina.
As a longtime Amazon Affiliate, small business owner and a published author, I'm one of the many people that will lose significant business over Amazon's withdrawal of its affiliate program from California. So will bigger fish, such as Adam Carolla, whose podcast gets a significant income from the program.
It is estimated that at least 10,000 Amazon Affiliates - small business owners, like me, already paying state and federal tax on the affiliate income - have lost their revenue stream. Not to mention the potential growth opportunities for expanding California businesses.
At 12:21 PST, all Califiornia Amazon Affiliates received an email including the following:
For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.
We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.
We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
The "big-box retailers" they're referring to specifically incude Wal-Mart. Three hours after the email went out, Governor Jerry Brown signed ABx1 28 into law.
To call it an ignorant and short-sighted move is an understatement so massive, it's frightening. While I don't depend on my Amazon Affiliate revenue, I know a good many California small business owners that do, including ones that have put man hours and significant investment into curating, maintaining, and promoting Amazon storefronts - and not just the "A-Stores."
Unintended consequences, indeed.
UPDATE: I received an Associate email from Amazon at 9:41 PST including this - the stoppage of California Associate revenue is effective immediately - and my heart goes out to those I know that have just had their income taken away literally overnight:
Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011. Those California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.
We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
Additionally, Richard Soderberg points out to me that part of this law (AB 28X) may be applied retroactively "pursuant to these agreements is in excess of $10,000 within the preceding 12 months" (PDF link).
SEE ALSO: Search expert Danny Sullivan from Search Engine Land has written an angry, brilliant post that captures the anger of Affiliates that have now been dumped by Amazon in An Open Letter To Jeff Bezos On Terminating The Amazon Affiliate Program In California. It's a must-read.
UPDATE June 30: The American Bookseller's Association has sent a triumphant email to brick and mortar retailers - bookstores - calling the passage of AB 28X a victory for e-fairness bills against companies like Amazon and Overstock.com. In their statement, they claim that Amazon's firing of its Associates was unnecessary:
AB 28X is a broader law than affiliate nexus laws passed in other states and, as such, will require Amazon.com to collect and remit sales tax to the state because of its subsidiaries in the state.
In a statement, Assembly Member Nancy Skinner, sponsor of the affiliate nexus portion of AB 28X, said, “This is a great day for California business. With the signing of e-fairness, California employers are no longer at a competitive disadvantage with out-of-state, online-only companies. Amazon.com and Overstock.com should do the right thing and play by the rules just like our California businesses do. Severing affiliate ties won’t change the fact that under our e-fairness they will still need to collect sales taxes. We hope that Amazon and Overstock rethink these bullying tactics.”
Image by Kevin Dooley, under Creative Commons 2.0 Generic license, via Flickr.

Violet Blue

About Violet Blue

Violet Blue is a Forbes Web Celeb, SF Appeal contributor, a high-profile tech personality and one of Wired's Faces of Innovation.

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Quoted from http://www.zdnet.com/blog/violetblue/amazon-drops-california-in-growing-e-commerce-affiliate-tax-law-war/485

Wednesday, July 11, 2012

Illinois Affiliate Nexus Tax Declared Unconstituitional


Illinois Affiliate Nexus Tax Declared Unconstitutional--Maybe good news for PA

Performance Marketing Association Wins Lawsuit; CouponCabin.com CEO Issues Statement

Yahoo! Finance Portfolio
WHITING, Ind., April 25, 2012 /PRNewswire/ -- In March 2011, Illinois House Bill 3659 became law, aiming to require online retailers located outside of Illinois to collect use (sales) tax on transactions made by Illinois consumers. Under the law, online retailers who did not have physical storefronts or employees in Illinois would be forced to meet these burdensome tax collection obligations so long as they maintained relationships with Illinois website affiliates. Most online retailers terminated these relationships rather than be subject to the new law.
As a result, many thriving online affiliate marketing websites, including CouponCabin, were forced to relocate to nearby states to maintain business operations.
The Performance Marketing Association (PMA) subsequently filed a lawsuit challenging the constitutionality of the law, Illinois Circuit Court Case No. 2011 CH 26333. In a ruling issued today, the court has declared the law invalid and unconstitutional.
In response to the law being invalidated, CouponCabin.com Founder and CEO Scott Kluth issued the below statement:
"CouponCabin is thrilled to hear the news about the affiliate tax being declared invalid in Illinois. We are relieved that the 9,000 affiliates that were based in Illinois may now have the opportunity to operate in Illinois without jeopardizing their business relationships with online retailers. This ruling places the responsibility for a solution back where it belongs: in Congress. CouponCabin continues to strongly support a federal solution to the taxation of all online transactions. For now, CouponCabin is heads down on helping people save money."
About CouponCabin.com
CouponCabin.com is a leading online destination for coupons including online coupon codes, printables, grocery coupons and more. Shoppers have saved nearly $350 million since 2003 and with the largest selection of coupons guaranteed to work, CouponCabin is the best place to start searching for savings. The average user saves $19 in just 80 seconds on the site. With customized email newsletters, browser savings alerts, new coupon alerts and more, shoppers will never miss out on a great deal with CouponCabin. For more information, please visit http://www.CouponCabin.com.

Saturday, April 21, 2012

Adverse Impact of Pennsylvania Affiliate Nexus Tax


Once again our illustrious government, in efforts to "screw the little guy" is going to end up inadvertently screwing themselves.  For those who are not aware, many Internet marketers are actively engaged in what is known as affiliate marketing.  This strategy, as opposed to selling products directly, the marketer promotes products from other companies and when people make purchases, the affiliate marketer receives a commission from the advertise whose products the marketer is promoting.  Therefore, if someone buys a product promoted by a marketer in Pennsylvania and the purchaser does not live in Pennsylvania, they are not charged Pennsylvania state sales tax.  Consequently, our Pennsylvania state government has come up with the bright idea that if they impose PA state sales tax on those sales going through affiliate marketers in Pennsylvania they will increase the revenue to our state.

Government dudes and dudettes, ARE YOU NOT THINKING????  This will impact Pennsylvania state revenues adversely in TWO ways.  Just like everyone else, most affiliate marketers report their earnings on their income tax returns.  So, PA will lose the income tax revenue from those earnings.  Those companies that have affiliates in Pennsylvania will terminate their affiliate agreements with them.  (I know because one of my advertisers already terminated my agreement in anticipation of the Nexus Tax Law).  Pennsylvania will also lose revenue from those people within the state who would have purchased products from PA based Internet retailers who have affiliates.  So, not only will they lose income tax revenue, they will also lose sales tax revenue.

If Pennsylvania needs to increase tax revenues, they should seek ways that won't economically injure the state itself and the thousands of affiliate marketers that reside in Pennsylvania.  Congressmen need to look at how much tax revenue they are receiving every year from affiliate marketers residing in Pennsylvania, because PA can color that revenue "Gone With the Wind."

If PA wants to really raise tax revenues, what they need to do is tax the illegal activities employed by the Catholic Churches in PA to raise money.  One only needs to closely examine the Bible to determine that gambling is a sin, and perhaps what the government needs to do is impose a "sin tax" on the Catholic Church for their Bingo games.  They should also require the Catholic Church to set up a trust for the victims of pedophile Priests.  If priests were allowed to marry, this would not be such a prevalent problem among those who many a young boys have placed their trust.

What about all the beer that is sold at Catholic events??  Does PA receive any tax revenue from those beer sales??  I think not.  Tax the boozers, guys!!!  The Catholic Church has been getting away with too much for too long and its time they pay the piper.  I really doubt that God would approve of Catholic Churches selling beer (or other alcoholic beverages in the name of supporting the church.  That is even more ridiculous than their ban on contraception.  True, the Bible does say "be fruitful and multiply," but it doesn't say have so many kids that you can't support yourself, become a crack addict, and get supported by the Welfare system, without even having a drug test.

So, I say to the Pennsylvania government....................WAKE UP!!!!!  Your are ignoring genuine problems and opportunities to generate revenue, at the expense of people who NEED to earn a living, or just a little extra cash.  A lot of us need a little extra cash from affiliate marketing just to be able to make ends meet.  Another great idea to increase PA revenue, is all Congressman and Senators should work for free, pay for their own healthcare, and rely on Social Security and PERSONAL retirement plans in the golden years.

Pennsylvania, it seems, thinks they can afford to give away millions of dollars every year to Welfare mothers addicted to crack, and illegal immigrants who should not only NOT get any benefits from Welfare, they should be immediately deported to wherever they came from.  We Pennsylvanians need to stand up and have our voices heard, we need to say "We're mad as hell, and we're not going to take it anymore!!!"

I encourage you all, BLOG, BLOG, BLOG, write letters to your Congressman and Senators, if they don't listen vote them out.  Let's all make a stand and put an end to this anal retentive behaviour on the part of our state government.  Remember the saying "The Pen is Mightier Than the Sward."  Write, gather support, get your supporters to write.  Together we can make change happen.  The kind of change that is good for everybody, not the kind of change advocated by Obama.  That is change that we DON'T need.


Who Stands to Lose

First and foremost, implementing the Pennsylvania Affiliate Nexus Tax Law will hurt consumers.  Why?  Because affiliate marketers are an integral part of the consumer purchasing process.  Many affiliates do research on the products that they promote.  Some of them write in-depth reviews on products that they have tried and they feel offer value to the consumer.  Read my cookware review for example.  They are familiar with them, they are familiar with competing products, and they can give consumers good advice to make an informed decision before they make the purchase.  Many consumers will make those purchases through links on the reviewer's website or blog.  This has two benefits, because it saves the consumer time, as many reviewers have already done the competitive shopping part as part of the review.  Also, the reviewer or blogger can make a small bit of money from each referral from the links on their site.  If this law is implemented, then advertisers will end their relationships with Pennsylvania affiliate marketers, and their won't be all of those informative product reviews that consumers have come to rely on.

The taxing authorities will lose, because some affiliate marketers are making enough money that it will be worth it to them to move to another state so they continue their businesses.  They will lose tax revenue from those that stay, because they will have a loss in income, and therefore be paying less in PA state income tax.

Product Manufacturers, distributors, and wholesalers will lose, because they will lose sales. Thousands of big retailers rely on affiliate marketers to drive traffic to their products.  WalMart, K-Mart, Target, Home Depot, fye, Circuit City, and Barnes & Noble, just to name a few that are well known.  Without affiliates, they all stand to lose millions of dollars.  Even online stores, such as Amazon and E-Bay rely on affiliates to drive traffic to their websites.