Affiliate Marketing Industry Under Attack!
The times are tough and many businesses are struggling to stay afloat. A lot of affiliate marketers are hurting these days as well. Many companies have already been forced to close their affiliate programs. But the threat to the affiliate marketing industry is not coming from the recession but rather the lawmakers around this country. Many states are looking for ways to boost their revenue in these tough times, and what a better way to do that than by imposing a sales tax on online retailers?
Have you noticed that you won’t have to pay a sales tax to Amazon when you purchase a book? That’s going to change if and when the lawmakers get their way. The introduction of sales tax can effectively wipe up a significant portion of the affiliate marketing industry. We all remember what happened with Overstock and its affiliates in the state of New York. Thousands of websites had their agreements with Overstock terminated as a piece of legislation was put into place to enforce online sales tax in NY.
Things are not as bad as they seem. They are worse. According to Businessweek, more taxes are on the way:
Minnesota’s House of Representatives is due to consider a bill introduced by Representative Jim Davnie that would levy a sales tax on digital downloads of e-books, music, movies, and even ringtones.
The affiliate marketing industry doesn’t seem to get a break these days. There will always be products and services to promote that are not affected by these tax laws. But think about what happens if eBay, Amazon, and big online retailers terminate their agreements with their affiliates. That would simply cripple a lot of smaller affiliates.
I don’t have a problem with paying taxes. But increasing taxes in these tough economic conditions is just not an smart way to go. I am not saying that as a Republican or a Democrat. The affiliate marketing industry is neutral politically. But I wouldn’t hesitate to favor the party that will protect smaller affiliates from these tax hikes. It’s true that affiliates are not directly getting taxed here, but if these tax hikes lead to a lot of affiliates losing some of their income, that is wrong to do. Affiliates pay taxes as well and the less they make, the less tax they’ll pay. You don’t go around taxing people in an economic recession. We should all hope that Quill v. North Dakota is not overturned, but at this point the local and federal government seem to be more concerned about taxing than helping small businesses, and that is truly sad to see. I do believe that the government will find a way to impose online sales tax. That doesn’t mean we affiliates shouldn’t up a fight against it.
Don’t forget to check the tips put out by ShareASale on how to fight this new wave of attacks on affiliate marketing industry. This fight is not about paying less taxes. It’s about giving small businesses around this country a chance to stay in business and grow.
