The Advertising Tax Hurts Affiliates
I haven’t said much about the advertising tax on this blog but I figured it is time I mentioned it. There are plenty of other people who know much more than I do about it but here is a quick video I put together explaining how this tax would be detrimental to me, to any affiliate, and to the states that try to pass this tax:
As an active member of the affiliate marketing community, I am opposed to any state legislation that would attempt to use affiliates to establish nexus for out-of state merchants.
Also the Performance Marketing Association put out this unified message that I totally agree with that will be able to state things better than I can:
I depend on my relationships with many out-of-state merchants for my livelihood. I put their advertisements on my website and earn a commission when someone clicks on that link to make a purchase or registers with that merchant. I am not an employee of any of these companies. I do not collect any money. I do not make the transaction. And I do not ship any goods. I simply advertise these offers to consumers for merchants.
This type of business model does not meet the definition of nexus. If bills like this pass in my state, many retailers will terminate their relationships with me and I will lose a large percentage of my income. That will impact my ability to provide for my family. I t will also impact the levels of income tax I pay to the state.
In fact, a handful of states that have passed legislation of this type (such as Rhode Island) have publically admitted that the states never realized the projected revenue and lost many small businesses in the process.
I want the affiliate marketing space to continue to thrive and grow. These types of laws will put small businesses, like mine, out of business.
So please do what you can to fight this. I will do my best to learn more about this, learn how I can better fight this, and how I can support those who are fighting for us daily.