Will You Be Next To Get The Boot From Amazon?
| Posted in Internet Marketing | Posted on 08-03-2010
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And How Will This Affect All Affiliate Marketers or Programs?
Usually I love Mondays, but this week did not start off well for me. I found a letter in my inbox from Amazon telling me that my affiliate account had been closed as of today, March 8th 2010, and that I will no longer be paid advertising fees for customers I refer to Amazon.com after that date.
Amazon state their reason:
We are writing from the Amazon Associates Program to inform you that the Colorado government recently enacted a law to impose sales tax regulations on online retailers. The regulations are burdensome and no other state has similar rules. The new regulations do not require online retailers to collect sales tax. Instead, they are clearly intended to increase the compliance burden to a point where online retailers will be induced to “voluntarily” collect Colorado sales tax — a course we won’t take.
We and many others strongly opposed this legislation, known as HB 10-1193, but it was enacted anyway. Regrettably, as a result of the new law, we have decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states.
My thoughts are, … If a giant like Amazon won’t comply with this new Colorado law … who’s going to be next?
What other companies are going to follow suit? ebay? Google Adsense? Online Affiliate Programs?
Will other states follow suit and pass similar legislation in hopes of reducing their deficits?
How long will it be before other affiliate marketers nationwide are affected?
Let me know what you think. Thank you in advance for your feedback.
By the way … anyone got a spare bedroom? Just considering my options =)
Carla J Gardiner
Janette Stoll
Marcus Baker
Michael B Wilbraham
Michael Novak
Peter Fuller MBA
Ryan Biddulph
Soren Egstrup
Stacy
Tragena Owen
Hey Ilka,
I heard about this legislation. I work as a copywriter for a congressional campaign in SC and we had a meeting about SC trying to do the same thing. Hopefully we can head off this sort of government interference in business before it gets to us.
Sorry to hear that you were affected. Hopefully the route companies like Amazon are taking will help to change this back for you.
In the mean time, you could consider getting a tax id # for your business in a neighboring state. I had a GA tax id for a couple of years when I got out of the Army, and had no problems with it. If you did that you could probably get back in with Amazon and others that follow suit.
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Ilka Flood Reply:
March 9th, 2010 at 1:35 pm
Thanks Chris, for your words of wisdom! Always appreciated!!
Yes, I probably could do that. Especially if that problem would grow. I don’t know how this legislation affects programs like Magnetic Sponsoring or any online affiliate programs. If they’d all decide not to do business in CO any longer, I would be in trouble.
If worse comes to worse, … I always wanted to move back to Texas
I don’t think it’s a very smart legislation, as the state would lose tax money anyway if businesses decide no longer to ‘deal’ with that state.
I hope you’re save and never have to deal with this.
Have a great day!
Ilka
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Gosh Ilka, that’s not a good way to start off the week : ( Sorry to hear about that for you. We have an extra bedroom and you are always welcome!
Hang in there!
Twila
[Reply]
Ilka Flood Reply:
March 10th, 2010 at 12:37 am
Oh Twila, you are too sweet! I was just kidding about the extra bedroom
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This is terrible.
I know that Amazon might not be known for huge payouts but this really bugs me.
It’s tough enough for people to get started without worrying about new state laws or being booted out of affiliate programs.
I feel for you Ilka.
I hope this trend doesn’t spread.
It’s hard enough for entrepreneurs as is.
[Reply]
Ilka Flood Reply:
March 10th, 2010 at 4:25 pm
Wow! You got here fast, Jason
Yeah, this will bug a lot of people and I sure hope this trend doesn’t spread either. For quite a few people affiliate marketing is their MAIN thing.
It’s really a shame.
Well, let’s hope for the best.
As always, thanks for your input, Jason!
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i have just signed up with the amazon affiliate program and i am still not earning a good deal of cash from them.-*.
[Reply]
Ilka Flood Reply:
May 18th, 2010 at 10:38 am
Hi Ellie,
Nice to meet you! It will take some time and a lot of traffic. If you have just signed up with them recently an already are earning commissions consider yourself lucky
Thanks for stopping by and have a great week!
Ilka
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