Affiliate Program Computer Software Web Tips Guide
Affiliate Program With Links To Amazon
By Joel Wannamaker
The affiliate program is a great way of making a little extra
money or, in some cases, a lot of money. The site www.amazon.com,
in particular, has been something of a boon for some people who
have Amazon links on their websites and whose customers or readers
buy products through those links.
Such affiliation has helped supplement some people’s income
in a substantial way, which is why many state governments have
begun to review their options and trying to find a way to tax
the proceeds of income made through affiliate links.
Online Income Free From Taxes
The reason why affiliate programs are not taxable is that a Supreme
Court ruling from 1992 says that no retailer can be forced to
collect state taxes if the retailer doesn’t have an office in
the state.
Of course, www.amazon.com
exists on the internet, with official offices in just a few physical
locations. This means that according to the law, Amazon should
not be required to collect state taxes from any of the people
who participate in its own affiliate network; nor should other
companies with similar networks.
Lawsuit From Amazon
But New York State passed such a law in 2008 anyway, prompting
a responding law suit from Amazon. The affiliate program was then
targeted in North Carolina and Rhode Island and, most recently
in Colorado.
Amazon is fighting the law in New York, most likely because it’s
such a big market and can set the standard for other states. But
in any other state that enacts a law that goes after an affiliate
marketing network, Amazon’s response is to cut off its entire
program in that state. So the state never does get the tax bonanza
it thinks it’s creating for itself.
State Taxes May Harm Online Marketing
Amazon itself is not harmed by these threats to its affiliate
program; rather, it’s most likely going to be small or medium-sized
businesses that end up suffering because of loss of revenue.
So many analysts believe that these state laws will harm internet
marketing in general, and in fact ultimately reduce sales revenues
and harm the state’s own business climate. In the end, the laws
could do more harm than good to the various states’ tax income
situation.
About the Author:
Joel Wannamaker has written a number of articles on Making Money Online, Computers, Online Marketing and Software including
Affiliate Programs,
Banner Ads,
Money Online,
Internet Connection Speed,
Start A Website,
Search Marketing.
Keep a lookout for more of his articles on this website.
Did You Know This About Affiliate Marketing?
Why does affiliate marketing seem to solely be an internet marketing
technique?
Affiliate marketing has its roots in business
referral but it truly is solely an internet marketing technique.
If you think about it, it does make sense. More and more consumers
are turning to the internet for products, services and information.
It is a convenience issue. Companies that
rely on internet business, for example Amazon.com, need to be
able to attract as many visitors as possible. By opening an affiliate
program where website owners can place Amazon ads and get a commission
for a sale, Amazon gets more traffic. If you were to try that
with a traditional store there would be almost no way to keep
track of the referrals and the actual sales.
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