Comments on: Will new tax law kill affiliate marketing in North Carolina?

By: Lacy

Lacy — Wed, 24 Jun 2009 03:49:47 +0000

Pretty cool post. I just came by your blog and wanted to say
that I have really enjoyed browsing your blog posts. Any way
I’ll be subscribing to your feed and I hope you post again soon!

By: John Dilbeck

John Dilbeck — Mon, 22 Jun 2009 11:40:31 +0000

Good morning, Pat.

You bring up a good point about lensmasters.

I’ve been thinking about this and I think there are two possibilities.

If we’re using the Amazon modules on Squidoo, then we’re not acting as Amazon affiliates. In that case, Squidoo is the affiliate and would not be affected by this. They can share their commissions if they want with lensmasters who use the modules on their lenses.

On the other hand, if lensmasters living in North Carolina are using other tools to market through Amazon using their own affiliate links, then they will be affected, if this law is passed.

At one time, a few years ago, this would have been a devastating blow for me. Now, I’m a bit more diversified than I was then. It will still be a serious blow, if it happens, but one that I can get through.

The real problem arises, however, if other affiliate programs cancel my accounts. That could be a real problem.

Act on your dream!

By: John Dilbeck

John Dilbeck — Mon, 22 Jun 2009 11:34:32 +0000

Good morning, A.M., Daniel, Joan, and Solomon.

Yes, it’s not good news, but there’s little I can do about it.

At least, some people in the state are in a position to try to fight it and are meeting with their representatives this week.

At this point, however, the legislation looks like it’s on the fast track to passage.

We’ll see.

Thanks for your support.

Act on your dream!

By: John Dilbeck

John Dilbeck — Mon, 22 Jun 2009 11:26:59 +0000

Good morning, Bruce.

I’m happy to hear that you have found a way to earn extra income at a time when I’m sure you need it.

I’m not sure I agree with you about paying the tax. All affiliates, if they live in a state with an income tax, have to pay taxes on our affiliate income. As far as I know, we all have to pay federal tax on our income.

But, this is different.

What gives a state the right to impose a tax on a transaction made in another state if that business does not have a nexus in the state?

I’m no expert and I’m not a lawyer, but it seems that they’re trying to redefine nexus in a way that just isn’t right.

I don’t think Amazon is using scare tactics at all. I think it was just a proper notification that I’m going to be dropped if this law is passed.

I don’t think it is just a matter of time before every state passes this legislation and tries to collect the tax. New York did pass it, but several states have rejected it.

I do agree, however, that part of business is adjusting and moving forward.

Good luck and best wishes to you, too.

Act on your dream!

By: pat

pat — Mon, 22 Jun 2009 07:25:29 +0000

I guess that will affect a lot of lensmasters, too.

By: Solomon Huey

Solomon Huey — Sat, 20 Jun 2009 14:45:30 +0000

That’s tough man. I’m sure you’ll be able to get through anything that might happen

Solomon Huey
Solomon Huey´s last blog ..If You Want Success, Follow Success.

By: Joan Adams

Joan Adams — Sat, 20 Jun 2009 14:37:26 +0000

oh my! this is very distressing news……leaves me totally speechless…….
Joan Adams´s last blog ..Golf in Scotland updated Sun May 31 2009 2:13 pm CDT

By: Deneil Merritt

Deneil Merritt — Sat, 20 Jun 2009 10:07:29 +0000

Sorry to hear that, I hope that you guys get your point across to the legislators.
Deneil Merritt´s last blog ..Are You Afraid To Be Famous?

By: Affiliates Mania

Affiliates Mania — Fri, 19 Jun 2009 16:13:38 +0000

thanks for sharing this John…

By: Bruce

Bruce — Fri, 19 Jun 2009 14:09:28 +0000

John, Since I became disabled I have earned extra income from internet affiliate programs. You have a proper attitude as you have well realized that it was a matter of time before internet affiliates would need to pay tax. We have slid by for many years. Amazon is again using scare tactics to enrage people to action, because they know their legal council can’t stop this action. It’s just a matter of time before every state enacts the tax. So, like a proper business person you absorb, adjust and move forward. Or you can let Amazon push you belly up and cry. They are making a fortune from our efforts like every other Madoff in the world. Small business is the backbone and has the backbone to survive. Businesses like Amazon will use you and cast you aside when you have nothing to give. Don’t fall prey to their intimidation, let your internal survivor kick in and move ahead. Good luck and best wishes for a great future!