[Warning] Amazon Have Started to Close Affiliate Accounts in Various US States...

by Vishal Mahadik

Posted: 14 years ago 16 replies

INTERNET MARKETING

Hey Friends,

I have just read the news that Amazon is forced to close its affiliate accounts in Colorado state. In June 2009, they already closed North Carolina and Rhode Island affiliate accounts.

California, Hawaii, Mississippi, Oklahoma, Virginia and Connecticut are the next probable states where the state government is trying to impose so called "Remote Sales Tax".

If this continues in other states then I suppose Amazon have to close its affiliate accounts in the major US states. What do you think? Will it really happen? If this happens then it is going to affect many Amazon affiliates...

#accounts #affiliate #amazon #amazon accounts closing #amazon affiliates #close #started #states #warning

backlinkking3

14 years ago

Is this the start of Big Brother watching over our shoulder again? What ever happened to American capitalism, where the best companies survived and the ones that didn't provide a quality service quickly went under? I sure hope that Amazon survives this ordeal.

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2 replies

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Daniel Brock 14 years ago

I really wonder if this whole nexus tax thing is going to generate them revenue for the state or not.

If all the major affiliate networks are knocking off states with nexus tax, how the hell do they expect it to work?

Leave it to the politicians to try and control things they know nothing about...
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Silas Hart

14 years ago

Originally Posted by backlinkking3

This IS American capitalism.

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1 reply

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Moostangdude 14 years ago

I am new to internet marketing, but I have the Colorado/Amazon story for you.

I signed up for Amazon and got accepted couple of days later.

2 DAYS after I get a long email from Amazon kicking me out of the system because CO is stupid. I moved here a few month ago, talk about bad timing.

I knew I should have never left TX, lol.
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Vishal Mahadik

14 years ago

I really wonder if this whole nexus tax thing is going to generate them revenue for the state or not.

If all the major affiliate networks are knocking off states with nexus tax, how the hell do they expect it to work?

Leave it to the politicians to try and control things they know nothing about...

I completely agree with you here. The US state governments are becoming more greedy day by day. Instead of controlling unnecessary expenditures, they are targeting major online companies like Amazon. This can affect other major companies like Ebay and Commision Junction.

Now it is the responsibility of the central government to demolish this so called Internet Income Tax.

Thanks

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actionplanbiz 14 years ago

It didn't go through in Hawaii
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Jimvesting 14 years ago

This has been news as of three weeks ago, it's an ongoing problem with taxation from state & local government. Amazon is fighting back by killing off third-party sales to kind of slap the state governments in the face and let them know that they don't appreciate being taxed higher
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- Daniel Brock 14 years ago
  
  I'm pretty sure that it didn't go through in all of the states mentioned above except for Connecticut. I think they are still voting on that...
  
  Can anyone confirm?
  
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FlashDriveDT 14 years ago

So all the amazon.com affiliates from abroad (like me) are the ones laughing last? Seriously, this is a huge bummer and I wish that whoever is responsible for this will come to their senses.
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- Jacqui 14 years ago
  
  Daniel - This is how I understand the current situation...
  
  The affiliate tax law passed in Rhode Island and North Carolina last summer. Colorado's legislation is a bit different, but Amazon dumped affiliates there just the same. Connecticut is pending, but affiliates are already getting the axe. It appeared California was safe last year, but legislators are still trying to push it through. New York was the first state to enact the ingenious law. Amazon kept NY affiliates and fought the bill, but lost (at state level).
  
  As actionplanbiz said, the law did not go through in Hawaii (vetoed by the wise governor). I'm not sure of the status in the other states.
  
  Of course, it's not just Amazon that cut affiliates. I received goodbye notices from most of my other merchants. Drugstore.com dropped me 9 months after the bill passed. Just when I thought I was safe! I read that Crayola recently dropped NY affiliates - almost 2 years after the fact.
  
  You're right - it doesn't seem to be working for the states as planned. They're not generating sales tax as expected and they're losing income tax from affiliates. Lose - lose.
  
  If you live in the US, contact your legislators!
  
  Jackie
  
  Thanks
  
  1 reply
  
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  genietoast 14 years ago
  
  If Amazon is doing that with quite a few states, I wouldn't be surprised if it gets rid of all of its affiliate program all together. It's not like they need it anymore really.
  
  Clickbank says they are not affected nor intend to make any changes because they already pay international and state taxes anyway.
  
  Of course, Clickbank sells digital products and doesn't have to worry about inventory and shipping costs like Amazon.
  
  You never know, though...
  
  Thanks
  
  1 reply
  
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  pizzatherapy 14 years ago
  
  I live in Hawaii.
  
  Last year the bill was passed in Hawaii.
  
  Amazon immediately dumped me as an affiliate. (they had warned me several times that if the bill passed, all Hawaii Amazon affiliates would be deleted.)
  
  However, thankfully, as has been stated here, the Governor did veto the bill.
  
  Several weeks later my account was re-instated by Amazon.
  
  There really is nothing you can do about it. Maybe lobby your state legistlatures.
  
  Obviously, the motivation behind this is to impose additional taxes on business done in that state.
  
  It really gives you something to think about: this may happen with all affiliate sites i.e. linkshare, cj, ebay...
  
  This is not good for affiliate marketers.
  
  This may be a good time to start thinking about creating your own products...
  
  Thanks
  
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  Kay King 14 years ago
  
  In Mississippi, the bill died in committee and was never voted on.
  
  I think the states doing this are shooting themselves in the foot. Marketers are not tied to work location - we have portable businesses.
  
  Small sellers earning extra income from Amazon, etc will quit selling. Those making significant income will leave the state and take ALL of their tax dollars with them.
  
  I think eventually there will be some states that position themselves as havens for IMers.
  
  Now it is the responsibility of the central government to demolish this so called Internet Income Tax.
  
  That's not the way it works in the U.S. - states set their own taxes and budgets.
  
  kay
  
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  ozduc 14 years ago
  
  Well it's not only the State Governments that we need to be worried about, it's also the Feds. Here is the Dems real agenda.
  
  YouTube - MAXINE WATERS OUTS THE DEMS SOCIALIST...
  
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slatron25 14 years ago

Leave it to short sighted, small minded politicians to screw it up for everyone. My

state was considering such a bill but I think it's on the back burner for now. The

politicians just can't seem to understand that they are killing commerce not helping it.
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JMartin 14 years ago

Unless I am missing something, you could just set up a company in a "friendly" state and use that info for your affiliate account.

Of course if you are only making a very small amount, it might not be worth it.

Either way, politicians suck.
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