Amazon drops Illinois affiliates

GarrieWilson 13 years ago

Originally Posted by brucerby

Do you happen to have a link to this as a news story?
_____
Bruce

I don't know of a news story but I got an email from Amazon a few hours after the first thread.
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levelupseo

13 years ago

I'm from Colorado and the same thing happened to me last year with Amazon. Amazon was a pretty decent piece of my revenue too at that time. I don't understand why they punish the people who make money for them for the stupidity of their politicians. Maybe they think the affiliates will make angry calls to their representatives? It didn't work in Colorado. There's no sign of it changing anytime soon.

Anyway, if you live in any state that Amazon has dumped, you could file your business in Delaware to get around it all.

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WareTime

13 years ago

Originally Posted by amakudari

I'm from Colorado and the same thing happened to me last year with Amazon. Amazon was a pretty decent piece of my revenue too at that time. I don't understand why they punish the people who make money for them for the stupidity of their politicians. Maybe they think the affiliates will make angry calls to their representatives? It didn't work in Colorado. There's no sign of it changing anytime soon.

Anyway, if you live in any state that Amazon has dumped, you could file your business in Delaware to get around it all.

Angry calls don't get it done. Find out who voted for it and vote for the other person in the next election. Amazon's revenue won't drop one bit because of this. Illinois and the other states that have done this are stupid. All they did was take away some income of their residents. Income that was taxed. Why they don't realize they aren't going to get the big bucket of money and should settle for the smaller one is beyond me, but they don't. Now they nothing.

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DubDubDubDot 13 years ago

Originally Posted by WareTime

Find out who voted for it and vote for the other person in the next election.

Voting doesn't get it done either. When it comes to taxes, political affiliation does not stop them from taking our money. Don't let them brainwash you into thinking otherwise just to get your vote. Some politicians are slower than others to take our money, but in the end they all take it.

And in the rare event that a politician refuses to go with the program, he is removed from power using various means and demonized by the opposing party and even his own peers.

Take the case of Rod Blagojevich, an outsider. If he were still in power none of this would be happening. He even warned that they wanted him out just so they could raise taxes. And sure enough, a fellow Democrat takes his spot and wrecks havoc on the state immediately after the election. You can't trust any of these guys. There really isn't even a point in voting anymore. All we are doing is plugging new characters into a broken system.
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BKenn01

12 years ago

Originally Posted by levelupseo

I'm from Colorado and the same thing happened to me last year with Amazon. Amazon was a pretty decent piece of my revenue too at that time. I don't understand why they punish the people who make money for them for the stupidity of their politicians. Maybe they think the affiliates will make angry calls to their representatives? It didn't work in Colorado. There's no sign of it changing anytime soon.

Anyway, if you live in any state that Amazon has dumped, you could file your business in Delaware to get around it all.

I am pretty sure the reason Amazon "dumped" you and the other states is because the affiliate relationship is how the politicians are tying Amazon to having a presence in the state thus requiring them to collect the sales tax.

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Mike McAleer

13 years ago

So what happens when this happens in all states? Will Amazon affiliate program shut down completely? DUMB!

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jan roos 13 years ago

I think the whole Amazon thing is just a president case for all of affiliate marketing. After all the Amazon stuff is done it will spread to Clickbank, ejunkie, google aff network etc.

It's all the same thing pretty much. The States want their taxes for products sold to it's citizens on the internet.

Looks like at the end of the day all the overseas affiliates will clean up here in the states when the rest of us are cut off. lol

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MoneyMonkey

13 years ago

This sucks for Illinois Residents and I am an Illinois resident. This is a huge blow to Illinois Affiliates and Illinois needs to fix it's laws. I can't stand for this when we are getting dropped by Amazon.

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Victor

13 years ago

It looks like there is also another thread on here that has a lot of comments on this:

http://www.warriorforum.com/main-int...residents.html

Hope that helps...

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scott william 13 years ago

thank you for this really helped me notice
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Nick Sammut

13 years ago

Originally Posted by Sfrew

Almost immediately upon Illinois adopting a new law charging sales tax on internet sales to Illinois residents (including across state lines in interstate commerce) Amazon has notified all of their Illinois affiliates that they are going to be terminated unless and until Illinois changes its law or its declared invalid by courts. I got my notice about an hour ago.

Brutal, sorry to hear mate.

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nubchai 13 years ago

I'm also in Illinois and just got my email notice from Amazon. One article I saw somewhere said that Big Box stores were pushing for this change. Now Walmart and Sears are inviting people to join their affiliate programs lol. I think this will spread to a lot of of the cash strapped states.
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howtoebookguy

13 years ago

I'm also a resident of Illinois, and this sucks. It doesn't surprise me though. They have to raise some sort of money to pay for the brokest state in the nation, and all of the trial costs for our corrupt governors.

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WCRocket

13 years ago

I'm in Indiana and if you haven't noticed the billboards across the border, you should know that you are welcome to come setup shop over here.

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lerxtjr

13 years ago

why they punish the people who make money for them

I'm from Colorado too and I know the people who fought against this in our state for 4 months. If they couldn't do anything to stop it, Illinois will be sunk too as well as every other state eventually.

This is not about politics. It's about money. Amazon is completely comfortable killing their associate program country-wide because, heck, EVERYONE buys through Amazon. They don't NEED us associates anymore. So, this is just a good excuse for them to cut us out.

And, to add on to the quote above, we don't just make money for them. We associates pounded the pavement for them and made everyone AWARE of Amazon in the first place.

This happens in the software business all the time. Software gets made, recruit resellers to learn, sell, and support the software, kill the reseller channel now that you have a name for the company and take all the sales direct (and keep all the profits).

So, you'll probably get furious enough like I was to attempt to ban Amazon. Well, that won't last very long either I'll bet. You'll be buying stuff from them again just like I do. They won, so we just moved on.

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affenpinscher

13 years ago

Amazon does find affiliates useful. Other companies, such as Wal-Mart, spend a ton of money on media and print advertising -without knowing how much of it is effective.

Amazon instead pays affiliates only when they sell something. That's a 100% return for everything dollar of advertising (affiliate sale) that it spends!

I think the safest course is locate a business in Delaware which has no sales tax, a business friendly climate and depends on the incorporation fees it gets from businesses. Your address at Amazon would have to be Delaware as well.

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Bruce NewMedia

13 years ago

Originally Posted by affenpinscher

....I think the safest course is locate a business in Delaware which has no sales tax, a business friendly climate and depends on the incorporation fees it gets from businesses. Your address at Amazon would have to be Delaware as well.

Y'know I have been reading about these 'work arounds' but don't understand how this would play out in reality.

Has anyone even attempted this? Specifically in other states where Amazon has already pulled out? I'm trying to see how viable a strategy like this really is?
_____
Bruce

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kimberly Aita

13 years ago

Originally Posted by brucerby

Y'know I have been reading about these 'work arounds' but don't understand how this would play out in reality.

Has anyone even attempted this? Specifically in other states where Amazon has already pulled out? I'm trying to see how viable a strategy like this really is?
_____
Bruce

I

I would also like to understand something like this more clearly. One of our fellow warriors is kindly taking advantage of the situation and selling some info for $27 but I would appreciate someone possibly giving us a little more detailed account of how to do this for FREE.

At least point us in the direction of where to get started setting something like this up.

I am considering moving in with my Mom temporarily

but I don't want to have to go to that extreme.

There must be someone on this forum that can write out a detailed report on the steps we can take to avoid getting our accounts terminated.

Thanks for all of the helpful comments so far.

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energytimes

13 years ago

I got the letter today as well sucks got shut down before I even got started. : (

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George Sepich

13 years ago

Maybe I will run for governor and get the law changed if I win.

George

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eta32

Banned 13 years ago

intesting posts

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ValentinJed

13 years ago

What's the tax percentage you have to pay?

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Carlsbadd

13 years ago

This has been coming for a few months, I don't even live in that state and I have been following it.
More and more states are looking to tax the internet so stay engaged if you want to keep it from coming to your state.
Like others said you can incorporate in another state like Delaware or NV.

For those who are getting dumped by amazon send me a PM if you want to sell your websites.

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bbonus

13 years ago

i'm affected by this as well, as i live in IL and got the letter last night. sucks!!!!!!!

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jmartinez

13 years ago

The site below may be worth a read. This guy seemed to have gone the LLC route to avoid the NY tax situation and he provides details. Seems like a decent route if you are making good money already.

I've been working on a new site for the past few weeks, so this kinda has me stumpted. I'm considering using the alternative programs such as sears or wal-mart since they provide the products I was creating my niche site around. Not the same as amazon, but I may be able to stay in business with it.

Anyway, I can't post links yet, but if you google search this term it should pull up the site:

New York State tax Law - Affiliate Marketing Work Around!

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kimberly Aita

13 years ago

Originally Posted by jmartinez

The site below may be worth a read. This guy seemed to have gone the LLC route to avoid the NY tax situation and he provides details. Seems like a decent route if you are making good money already.

I've been working on a new site for the past few weeks, so this kinda has me stumpted. I'm considering using the alternative programs such as sears or wal-mart since they provide the products I was creating my niche site around. Not the same as amazon, but I may be able to stay in business with it.

Anyway, I can't post links yet, but if you google search this term it should pull up the site:

New York State tax Law - Affiliate Marketing Work Around!

I haven't read it yet but wanted to say thanks. I just copied and pasted and am going to check it out. I am just starting to see some income from my sites so at the moment can't afford any $400-500 fees for setting up shop somewhere else but it is something to consider.

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kimberly Aita

13 years ago

Just read the article and while I still can't afford to take action, it is really detailed and is something I am going to work toward getting done.

Thank you JMartinez for sharing this with us!!

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Sarah Russell

13 years ago

That sucks, but it's not entirely unexpected. If states are broke, they're going to try whatever they can get away with to increase revenues.

Definitely a good reminder to diversify monetization models, though!

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Bruce NewMedia

13 years ago

Originally Posted by gujjuboy

My advise is to form an LLC in a safe state. Best state to form LLC are nevada, delaware and wyoming. Many are forming in nevada as they don't share any info with irs, 0% sales tax etc..but keep in mind that nevada is currently in hugh deficit and they are planning to introduce a sales tax law.

Thanks for the info...I would however caution about Nevada.

If they impose a sales tax, I bet it will NOT exclude an Amazon-type internet business. Look at what Nevada lobbied for years ago. They were front and center to eliminate online gambling, because it would hurt casinos. Just saying.
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Bruce

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lolmoney

13 years ago

I changed my address to Indiana, no problem

Illinois is terrible. A toll gate every 10 miles in the Chicago area...

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NicheDad

12 years ago

The Illinois state tax law was struck down by the courts as unconstitutional. Anyone heard when Amazon will let us back in?

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fluffythewondercat 12 years ago

You just have to wait, unfortunately.

After California made a deal with Amazon, it took some weeks for AMZ to invite us Golden Staters back in. In the case of Illinois, most people expect that decision to be appealed, so it could be quite some time for you. Sorry.

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WishfulDoing

12 years ago

You're right about that. There's no way the state is going to just give up all that additional revenue. I expect this fight to drag on.

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Alessandro Zamboni 12 years ago

Hi Sfrew, it's sad that some USA states are being cutted off for that reason. Your unique thing to do is waiting for a possible change of rules, and hope to be able to access Amazon affiliates program soon.

See you soon,
Alessandro
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