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Legal Financial side of being an affiliate marketer?

by heevyhivy
10 replies
Hi, I've seen so many topics with people mentioning about business paypal accounts, business tax laws, legal financial obligations...

I feel like this is the area I feel least confident about in affiliate marketing.
When do all these obligations and considerations come into play?
#affiliate #financial #legal #marketer #side
  • Profile picture of the author jphilips
    Before you take your first payment. This is a business. Learn the rules and legalities to avoid unpleasant surprises.
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  • Profile picture of the author JMSD
    That's right. You need to set up your structure, first, (type of company: sole trader or incorporated compay, business bank account, business PayPal account, admin, etc) before you begin to trade whether as an affiliate or a combo of affiliate and product developer.

    Most accountants and solicitors will give you one hour of their time, initially, without charge. Sort of "get to know you and see whether we can work together" kind of thing while you explain your business idea to them.

    Might not be a bad idea to have a brief chat with them on the basis that once your business is up and running, you might use their professional services.

    James
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by heevyhivy View Post

    When do all these obligations and considerations come into play?
    The answer to that question actually varies greatly from country to country. (And inside the US, it can vary a lot from state to state and even a little from city to city, too, regarding business licences and so on).

    But, in general, wherever you live, it's a good thing at the very least to be aware of the issues involved - whatever they are, in your location - right at the outset.

    But don't seek or take any legal/accounting advice in a forum.
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    • Profile picture of the author heevyhivy
      Okay, so I will be a UK affiliate marketer promoting to US buyers only.

      I'm only asking this advice here because I didn't think it would be absolutely necessary to hire an accountant/legal advisor for a purely affiliate business (atleast not before I pass a decent income threshold).

      Does anybody know anywhere online or offline that I can get this free 1 hour consultation, where the person I'd be talking with is going to know about the affiliate business?

      Also, alot my questions will be fairly basic and routine like any other beginner affiliate marketer who has never studied or worked in business. So is there some sort of sticky thread or website that will give me this information?
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      • Profile picture of the author JMSD
        Originally Posted by heevyhivy View Post

        Okay, so I will be a UK affiliate marketer promoting to US buyers only.

        Does anybody know anywhere online or offline that I can get this free 1 housultation, where the person I'd be talking with is going to know about the affiliate business?

        Also, alot my questions will be fairly basic and routine like any other beginner affiliate marketer who has never studied or worked in business. So is there some sort of sticky thread or website that will give me this information?
        Start with the accountants/solicitors in your own home town. Ring them up and tell them that you are looking for an accountant/solicitor with experience of online marketing where your core customer base will be US. During the discussion, you'll be amazed at how much info you'll get free. A number will even offer you an hour's consultation free of charge.

        As for information on starting a business (affiliate marketing is just one type of business), there are free sites - hmrc.gov and if you Google something like "essentials of business start up" you'll get official sites (a few will be accountancy and legal firms) where free info will be available.

        Search and you will find!

        James
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  • Profile picture of the author lukedidit
    Legally if you remain in the T&C's of your affiliate, I don't think there is much else, apart from putting the affiliate text on your site and linking to a privacy policy.

    The next element would be the inland revenue where you would need to register as self employed and get set up to pay tax (which you can do while still having a full time job) - from there its a case of having an accountant set up your tax returns and then claiming for everything under the sun - part of your home to work, your desk, broadband, telephone, car etc I have heard others also funnel some cash into Adwords so it is invested back into improving business then paying for some chav on the doles sky + connection.

    As always though, I am just a bloke on the internet - lawyer up to be sure!
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    • Profile picture of the author heevyhivy
      Hmm, I definitely won't need to hire anyone to do my Tax Returns. Especially not the outset, making any money this way is going to be a slow miracle after all lol.

      My won Affiliate Text?
      My own Privacy Policy?
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  • Profile picture of the author heevyhivy
    So I called up an accountant and I was told that anyone with an online business would be required to pay something known as an NI class 2 tax. Is this true for Affiliate Marketing? Has anybody come across this?
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    • Profile picture of the author heevyhivy
      Yes? No? Depends?
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  • Profile picture of the author Steve Wells
    Sounds like this would be a great idea for a WSO....
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