Amozon cancels California affiliates--my solution

[paulgl]

I was having my best amazon month. Pity. Amazon just
cancelled all CA affiliates due to tax issue.

It took me a while to figure out what to do. Some of my
amazon pages were top ranked.

My temporary solution is to 301 them to a corresponding squidoo
page.

Anyone have any other ideas with what to do with a highly
ranked, nice PR, amazon page?

I was thinking of just doing an article on books, but man that's
a tough one without any to offer.

paul

[yukon]

Have you looked into viglink?

[smorse1]

Man...that stinks - don't get me started on the government - but this issue really makes me mad.

[yukon]

Originally Posted by smorse1

Man...that stinks - don't get me started on the government - but this issue really makes me mad.

It's not the Govs. problem, it's Amazon!

They (amazon) keep running from state to state trying to build distribution centers, the second someone says you have to pay tax on sales just like any mom & pop store (or even walmart), amazon packs it's bags & says cya!

I live in South Carolina & amazon started building a new distribution center. Something came up that they needed to also pay tax (like every business in SC is supposed to be doing). Amazon packed up & bailed, after already spending a bunch of money building the distribution center.

Those distribution jobs suck anyways ($10 per hour LMFAO!), what a joke, you can get that kind of pay at McDonalds + something to eat!

Amazon needs to pay tax, just like any other business.

[paulgl]

Originally Posted by yukon

Have you looked into viglink?

Vigilink may be an option, but I liked the direct linking, with pics,
for amazon products.

Paul

[yukon]

Originally Posted by paulgl

Vigilink may be an option, but I liked the direct linking, with pics,
for amazon products.

Paul

You might need to contact a rep at viglink to see If you can still get affliate sales at amazon via viglinks affliate code.

Still with viglink you have way more options besides amazon.

• Kohls
• Sears
• Best Buy
• Literally thousands of online stores

I signed up with them when they first came out a year or two ago, found them on Blogger. I havn't made any $$ with them yet, I also havn't tried, I posted the affliate code on a single old site that's not well targeted.

I'm looking into building a large retail site now that will be running viglink, I found a WP theme I like last night, might buy the domain today.

[Craig McPherson]

Originally Posted by paulgl

Anyone have any other ideas with what to do with a highly
ranked, nice PR, amazon page?

paul

Sure Paul. Replace your ID with mine for a 80/20 split

[esdavis]

About Viglink.
I don't use them, but I checked out their page. It appears that they are functioning kind of like other affiliate networks like CJ. I may be wrong. If so, ignore me about that.

If that is the case, and you are ultimately being paid a commission from a vendor like Amazon on an Amazon sale, then no matter who sends you the check through a middleman processor, the sales are reported by Amazon as revenue.

Most of the aff networks are managing affiliate plans for vendors. You aren't exactly an affiliate of the affiliate network. You have to sign terms for most vendors and the ones worried about Nexus are starting to say you can't get commissions if your nexus is in certain states. You'll have to forfeit the commish.

Now I'm no lawyer, but I've been following the legal arguments in this through various credible news sources. It appears that if Amazon or other biggies are even slightly worried about an appearance of state Nexus, they'll bail on every affiliate in the state.

I've had to re-sign terms on CJ for several advertisers lately certifying that I am not a resident of a few states that have already caused problems.

This doesn't speak directly on how to find a way to work through a middleman with Amazon, but I'd suspect that if Amazon can't prove to the states that sites like Viglink are not paying you (for Amazon), they won't allow you to participate because they're terrified of Nexus issues.

The CPA networks are even afraid, because they think that paying affiliates/publishers through their networks will subject them - and then thus their customers the advertisers - to nexus.

It's a mess. If anybody is vague on this, I'd read up on it. It's going to hurt us all in the end. The states are too idiotic to see what Amazon and others are doing to keep from generating that tax revenue the states need.

Frankly, the online guys should just pay the tax. But I'm a local business here in my state, too, and I have to cope with different taxes and different districts, just in one state. To do it in all states is a nightmare, which is why Amazon is running away.

The best we can hope for is a national sales tax arrangement for online so that there is a standardized process to follow. Maybe then the big guys online will play and this will sort itself out.

Problem is, with states' rights, and our Congress, I don't see that happening soon, or happening well.

Anyway, sorry about partial off-topic about Viglink. I just think the rest of this is kind of part of the problem we're trying to solve here.

[paulgl]

80/20 split. Man if it was that easy.

I'm wondering about squidoo. They revenue share with
people all over the world and country.

Stupid thing. I just recieved an email from golfballs.com
saying they canceled my affiliate with them for same reason.
Man I have not done golfballs.com in a dog's age. You'd think
I would have been wiped off the map.

The thing is, amazon has a razor thin profit margin. They start
collecting 8% sales tax here and their prices go up accordingly.

Lot's of people, me included, check amazon first for a deal.

The compromise would be a smaller tax rate for online sales. You
cannot compare a sale from an online retailer to going to the
corner walmart.

This thing could snowball and make all affiliate programs change.

I just wonder how many sales amazon will lose. They estimate that
10,000 affiliates in CA alone are now closed. That's like
saying 10,000 websites will no longer sell amazon products.

Good thing for them google loves em!

Paul

[jmarketing]

Originally Posted by paulgl

I was having my best amazon month. Pity. Amazon just
cancelled all CA affiliates due to tax issue.

It took me a while to figure out what to do. Some of my
amazon pages were top ranked.

My temporary solution is to 301 them to a corresponding squidoo
page.

Anyone have any other ideas with what to do with a highly
ranked, nice PR, amazon page?

I was thinking of just doing an article on books, but man that's
a tough one without any to offer.

paul

I received that email today. It says it will do it if the Jerry Brown actually signs that bill. They will know by sept and that is when it will be implemented.
It does look like its gonna happen.
maybe we can find people out state to partner with some how, if we have the traffic they have the account? Just a thought
Doing a post about it tonight.

[yukon]

Yea, but the big dogs will move their business out of CA. which I'm sure CA has a few.

Just be careful If you move your business to Cheyenne, Wyoming (interesting story).

http://blogs.reuters.com/the-deep-en...te-talks-back/

Originally Posted by paulgl

80/20 split. Man if it was that easy.

I'm wondering about squidoo. They revenue share with
people all over the world and country.

Stupid thing. I just recieved an email from golfballs.com
saying they canceled my affiliate with them for same reason.
Man I have not done golfballs.com in a dog's age. You'd think
I would have been wiped off the map.

The thing is, amazon has a razor thin profit margin. They start
collecting 8% sales tax here and their prices go up accordingly.

Lot's of people, me included, check amazon first for a deal.

The compromise would be a smaller tax rate for online sales. You
cannot compare a sale from an online retailer to going to the
corner walmart.

This thing could snowball and make all affiliate programs change.

I just wonder how many sales amazon will lose. They estimate that
10,000 affiliates in CA alone are now closed. That's like
saying 10,000 websites will no longer sell amazon products.

Good thing for them google loves em!

Paul

[derekwong28]

I just don't understand the logic at all. Why does Amazon have to terminate affiliates from a particular state if they have to pay tax on orders from that state?

[esdavis]

derekwong28
The short and sweet is that as long as Amazon THEMSELVES do not have a presence in CA that establishes Nexus for sales tax regulations and law, they DON'T have to collect sales tax.

So they physically stay out of these kinds of states, avoid nexus for themselves, and hide from having to collect tax.

BUT, the law guys are getting smarter. They redefined Nexus to apply not just to the big company's locations, but now by affiliates.

So if an affiliate lives in CA, that automatically establishes Nexus for any big online guy they sell for. Amazon won't kill themselves fighting nexus or collecting the taxes to pay if they can avoid it. And they can. Just fire the affiliates in the state.

That's what's got us up in arms. Dumb states think that if a SINGLE one-man show sitting in front of a home-office computer gets a commissioned sale, it's the same thing as a billion dollar company making sales.

Argh. Don't get me started again tonight. I dumped this whole commentary on my household at dinner tonight. Boy do we have fun dinner conversations, huh?

[4morereferrals]

Originally Posted by yukon

It's not the Govs. problem, it's Amazon!

They (amazon) keep running from state to state trying to build distribution centers, the second someone says you have to pay tax on sales just like any mom & pop store (or even walmart), amazon packs it's bags & says cya!

I live in South Carolina & amazon started building a new distribution center. Something came up that they needed to also pay tax (like every business in SC is supposed to be doing). Amazon packed up & bailed, after already spending a bunch of money building the distribution center.

Those distribution jobs suck anyways ($10 per hour LMFAO!), what a joke, you can get that kind of pay at McDonalds + something to eat!

Amazon needs to pay tax, just like any other business.

its not just the tax that Amazon "must" pay - even though there is constitutional grounds for them NOT having to pay it - but the costs to administrate making sure the tax is collected paid and managed and all their distributors are in compliance as well. This alone is likely as much or more than the freakin taxes.

Its such a low brow cash grab and such an un-imaginative solution to a complex problem - wreaks of the typical politco crap that got most of these states into the financial binds their in. Here's an idea - how about we let the people who work - keep more of their money and those that dont work ... try and figure out how to work ? [ work is loosely defined as produce et al ... ] Not talking about those who cant actually work.

All the states that have implemented this stupid law and attempted $$$ grab from the low lying fruit have NOT rec'd more revenues into their coffers. Id love to see the reports or any study that indicates where the states that have implemented this have rec'd ANY benefits for their taxpaying constituents.

Governmental intervention and taxation are rarely the solutions to economic growth. Wonder how many more Govt employee positions and union members this new CA law just created? Online Tax Czar and his 250 minions needed to administrate it. 200 more people on the govt dole doing a $10 an hr job getting paid $200k a year equiv with full bene's and pensions - that we get to pay for .... and our grandkinds seemingly forever.

Its pathetic really.

[4morereferrals]

Originally Posted by paulgl

The compromise would be a smaller tax rate for online sales. You
cannot compare a sale from an online retailer to going to the
corner walmart.

Paul

When you consider all the TAX breaks walmart typically negotiates with state and local legislatures BEFORE they build a presence in a location - its like they pay no taxes either - or greatly reduced to be sure - than Mom and POP shops.

Sadly - the best and brightest are not in Sacramento problem solving - we sent some of the dimmest bulbs on earth there to do our bidding - guess we get what we deserve.

[teatree]

You can try becoming an affiliate of buy.com. They are physically based in california so paying the tax anyway, and happy to have californian affiliates.

Edited to add: with Squidoo, their own modules use their own amazon affiliate ID, and they share 50-50. They are based in New York, and though NY has also passed a similar bill, it is worded differently (I don't think Amazon can get out of it just by not having a physical presence), so they are complying with the tax at the moment and challenging the law in the court.

[Kristista]

I received an email from a Warrior last week about a company in the UK that will act as a middle man between CA affiliates and Amazon and take only a small percentage of your $$, sending you the rest.

I accidentally deleted the email and am trying to find out who that company is....anyone have any idea??????

[Frugal Jen]

I received an email from a Warrior last week about a company in the UK that will act as a middle man between CA affiliates and Amazon and take only a small percentage of your $$, sending you the rest.

I accidentally deleted the email and am trying to find out who that company is....anyone have any idea??????

Skimlinks.com

[Mike Grant]

Didn't read the thread so apologies if this is a repeat, but why not just get a PO box in another state?

[faceblogger]

You may replace the amazon offers by relevant CPA offers (for the niches that have CPA offers).

[LeahRae]

Originally Posted by derekwong28

I just don't understand the logic at all. Why does Amazon have to terminate affiliates from a particular state if they have to pay tax on orders from that state?

I am in Illinois which Amazon just dumped from it's affiliate roles. Many of my clients took a huge financial hit.

Amazon DOES NOT want to collect taxes because it will cost Amazon a fortune in paying an army of tax accountants to keep track of each states individual tax needs.

Yes they could develop a software to streamline the process internally, but that along with the people needed to review the output along with tax accountants proficient in individual state tax laws is still a cost they seem unwilling to take on.