Internet Tax is Coming. Brace Yourself!
Internet tax is coming whether you like it or not. We hear all these stories about states that have defeated the legislation in the past. Affiliates in those states seem to feel too confident about the prospects of doing business in those states. Let’s face it. As an affiliate, myself, I do want the industry to grow and internet regulation to stay at a minimum. But many states are struggling with their budgets, and it’s only a matter of time before the government starts going after the Internet. Internet regulation has been delayed but not avoided. Take Philadelphia for instance. We have had budget crisis for a while now. Every few years we hear about the local government’s plans to add a “trash collection” fee to our tabs. Every few years we defeat it or delay it. But it keeps coming up again and again.
Shareasale, CJ, and other top affiliate networks have done a wonderful job informing their affiliates and help protect them against these internet taxes. But if a state wants to pass the tax, it is going to do it. What an easier way to balance the budget than putting tax on internet sales. And the way our states are struggling to make their ends meet, we may not be too far away from a comprehensive internet legislation that will drive many affiliates out of business.
We have already seen what could happen when states decide to tax internet sales. Amazon has already dropped affiliates in a few of those states. Colorado was one of those states. Of course, some affiliate networks stand by their affiliates (e.g. ClickBank), but when the next tax legislation comes into play, you can expect affiliate networks to reduce your commissions or drop your altogether. It won’t be anything personal but more of a business decision. Affiliate companies are not going to incur a loss just because you have been a somewhat productive affiliate.
As an affiliate you don’t have time to be scared or even worry about such tax. Your goal should be to be prepared for when things get worse. That’s why you should work towards a bigger goal than just making affiliate checks each and every month. Most top affiliates have their own products. That should be your goal if you plan to stay in this business for long. Having your own product not only gives you the ability to have more control over how much money you make, it also allows you to participate with joint ventures with other top product makers. You can always offer your product as a bonus to those who use your affiliate link to purchase products.
It’s too easy to get stressed out about all these laws and affiliate marketing issues. At the end of the day, you need to plan for the worst and be prepared just in case your world is turned upside down. The internet tax is coming so you may as well get ready for it.
