Starting An Affiliate Program?
So are you thinking of starting an affiliate program? I was so excited the day when I finally figured out how to go about this and did so for several of our websites. There were product lines we could not get as an online retailer but we could get through an affiliate program.
Then one day an email came and said “I am sorry to have to remove anyone from our affiliate program, but due to the enactment of internet nexus tax laws in Rhode Island, we can no longer accept publishers from the state into our program. I encourage you to contact your local legislators to express your thoughts and concerns on the law, and to check out the Performance Marketing Association for more information on the nexus tax.
Now, mind you I had added hundreds of products to these sites, that I had to take down immediately. And then the little ads I had as well. I was not happy. I have not had much time yet to investigate further except that I did learn Rhode Island was not the only state. There are other states such as” New York, California, Illinois, North Carolina, Arkansas and Connecticut. So if you live in those states you may want to check it out first.
The law requires online retailers with sales affiliates based within their borders to collect sales tax.
Starting an Affiliate Program in your state
California’s law also extends the obligation to collect sales taxes to online retailers that have subsidiaries or affiliated companies in the state. I had no problem paying taxes that were due so I don’t understand why these companies would not want to keep us as affiliates – unless they felt they would have to chase people in these states for the money? We still have a few affiliates that did keep us. Have you worked with affiliates and came across this Nexus Tax situation too?
You can also learn how to stop etaxes here on Twitter. Their domain expired.
Starting an Affiliate Program Update
- March 2012 – We received our first check from LinkShare for our Crocs sale! It’s a hit or miss with some retailers and I’m still using the ones that have not backed out. Other affiliates back out for other reasons too. I’d advise you not spend a lot of time adding products to your website but use their ad banners instead in case they pull out. (Unless you live in a state that does not have Nexus law and you have time to add individual products – depending on your website, etc)