Nexus tax law just passed :(- Now what ??

[Chris NKC]

Hello Lynn and all forum members,
My state recently passed one of those stupid Nexus Tax laws.
Of coarse they did this right after I set up websites.

Had an associate account with amazon, but you know what happened as soon as the law was passed- terminated.
And I am afraid that if I apply with other sites ( C.J., etc) I would not be accepted because of this new law.
I have three websites. 2 are blogs which could be monetized.

Bottom line is I am at a loss as to what to do next.
I was wondering what others have done in this situation.

I have read that many have moved ( not an option for me ) or just plain went out of business because all of their advertiser's closed their aff. accounts.

Thanks everyone and hope 2014 is a prosperous one for you.

[Lynn Terry]

Hi Chris,

There are a lot of options! This is an older post, but has some great ideas to consider: http://www.clicknewz.com/2290/survive-affiliate-tax/ Give it a read and let me know your thoughts, and we'll go from there.

[Chris NKC]

Thanks Lynn,
I have looked at this article as well as another you posted on this issue.
Also followed some of the links you had at the bottom of the page.

I only had one merchant, Amazon, but was in the process of getting ready to sign up with CJ, Linkshare, and a few others. Not one to put all my eggs in one basket
I am wondering however if it is worth my effort. Are most of the retailers going to reject my app, like Amazon, because of my states legislation ? If that is the case, seems like a waste of time to sign up.

I would be curious to know from other publishers/members in affected states if this is the case.

Changing Revenue Stream- This is something I am considering.
One avenue might be freelancing. But I have not looked into it thoroughly yet.
Need to find a reliable information source to research the business first.

A few other solutions that I have run across are setting up/moving your business in a non affected state, or partnering with someone in a non affected state, and having your business address there. Both of these options would require a Lawyer and Tax specialist's to be set up correctly.

I have put a lot of time and effort into this over the last year or so, and would like to continue, but as it stands now it is an iffy proposition at best until I can find a solution.

I believe my next step will be to inquire with the affiliate programs to see how their advertisers are handling affiliates in those states that have passed these laws.

I will try to post a summary, and what action I decide to take, when I get a reply.

Chris

[Chris NKC]

Ok, Never mind about below. Just found your sticky on moderated post's- my bad.

Well, I read your post and tried to reply here. Said it was awaiting review, but has disappeared. Did I BooBoo ??

[Chris NKC]

OK, here is my update.

I have contacted CJ, LinkShare and Share-a-Sale. Three of the biggest names I could think of.

The question I posed to them was this:
" Are you seeing a increase in your advertiser's closing affiliate accounts or refusing apps for those that are located in State's that have passed a Nexus Tax Law, as Amazon and Overstock has done?"

All three have said that while some of their advertiser's have chosen to do this, a vast majority have not.
Also, Advertiser's that have had a long standing and productive relationship with an affiliate living in those states many times will not close the relationship. This is because they know the value of a productive affiliate.

They also suggested that if your app is refused, or they do close your existing affiliate account, that you contact the company directly and ask if the Nexus Tax was the reason, or if it was something else. Also ask what steps you can take, if any, to continue working with them.
Keep in mind, this will probably not work with Amazon or Overstock, because they are in legal wrangling's with these states. They are doing this to make a point and to get people involved. They are likely NOT to change their minds.

So, in a nutshell,
If you, like myself, live in one of these states, go ahead and apply for affiliate accounts through CJ, LinkShare, Share a Sale, Clickbank, or whom ever.
If you are rejected, or they have closed your current account, contact the company directly and speak with the affiliate manager. Find out why.

I am going to go ahead and start setting up accounts. If anything goes awry, I will try to post.

*** Just FYI- I have read on the PMA website that the Illinois Supreme Court has upheld a lower court ruling that the Illinois Nexus Tax Law was unconstitutional. The law has been repealed. Amazon has reinstated affiliates in that state. This may be the beginning of a National reversal of these laws. But it will undoubtedly take time.

[Lynn Terry]

Great update, Chris! There are SO many options, and such a variety of revenue sources. There's CPA offers through sites like Escalate Media and working directly with brands for paid content with sites like Social Spark. (those are my referral links - I use them a lot.)

There's also Google Adsense, taking on advertisers & sponsors directly, and plenty of affiliate programs still available to you. *cheers*

[Chris NKC]

Great update, Chris! There are SO many options, and such a variety of revenue sources. There's CPA offers through sites like Escalate Media and working directly with brands for paid content with sites like Social Spark. (those are my referral links - I use them a lot.)

There's also Google Adsense, taking on advertisers & sponsors directly, and plenty of affiliate programs still available to you. *cheers*

Hi Lynn,
Thank you !!
And Thank You for the webinar today. As always it was awesome.
Thank you for the links and the ideas. I will check them out as well.

Truthfully, I was really feeling dejected after learning this law passed, and being notified that Amazon closed my account. I simply didn't know what I was going to do.
Then I decided to come here, as well as the affiliate programs, and ask questions. So glad I did.
And so glad you are here for us. There are so many scammers out there, but you provide a very real service to this community, and to the Internet Marketing Business as a whole.
All should follow your example.

[angienewton]

Chris, definitely don't let it get to you. Amazon had pulled out of my state IL and I lost most of my income. But other stores that are based in my state that have affiliate programs worked for me. Then I started focusing on sponsorships/advertising and that has been the best income yet. NOW Amazon has reinstated IL affiliates although we had to get new accounts (big bummer lol) I'm still editing links from years ago. It will be a long process but it's OK there will always be forks in the road we have to overcome.

[Chris NKC]

Chris, definitely don't let it get to you. Amazon had pulled out of my state IL and I lost most of my income. But other stores that are based in my state that have affiliate programs worked for me. Then I started focusing on sponsorships/advertising and that has been the best income yet. NOW Amazon has reinstated IL affiliates although we had to get new accounts (big bummer lol) I'm still editing links from years ago. It will be a long process but it's OK there will always be forks in the road we have to overcome.

Hi Angie !
Nice to hear from you. Thank you for replying to the post !
That is what I had read, and what concerned me. That is why I decided to contact the Affiliate sites and ask the question here.
I still have not signed up with anybody, but plan on doing that today. (Been working on my Biz Site). I will look into finding companies here in my state as well.

I would be interested on how you work the sponsorship.

As far as paid ads go, one of my sites is a review site, and I do not feel it is credible to accept ads on that site. It will be an ad free blog.
However my niche site will accept ads, so that is an avenue I will pursue.

I am glad the law was repealed, and you folks in IL got your affiliate accounts back. Hopefully this will lead to more repeals.

Dejected maybe wasn't entirely correct. More like PO'ed. lol. But it did feel like a kick in the gut.
Yes, there will always be Folks in the Road. But they have stuck this folk somewhere else. I would love to return the favor.

[Lynn Terry]

Hi Lynn,
Thank you !!
I'm so glad you are here for us. There are so many scammers out there, but you provide a very real service to this community, and to the Internet Marketing Business as a whole.
All should follow your example.

Thank you. That totally made my day. Very much appreciated!