Affiliate marketers have again been shut down by tax-hungry politicians. In a stunning move yesterday, Amazon
These brain-dead politicians were quick to lash out at Amazon, stating that the terminations are a retaliatory act intended as a ploy to gain national attention. It worked. Sure, Amazon chose to cut off the affiliates but it wouldn’t have happened if these idiotic politicians kept their collective noses out of businesses they don’t understand. Oops.I’m sorry, they don’t understand business at all. These tax and spend buffoons see business, affiliate or otherwise, as nothing more than a cash cow to be plundered at will.
According to The Wall Street Journal article, these 4,200 affiliates generated $37.5 million dollars in revenue. Essentially, the state of Colorado caused a “layoff” of 4,200 people and pulled $37.5 million dollars out of their own economy. Brilliant move, Colorado.
Many other states are looking to enact similar measures that will destroy countless businesses and put thousands of individuals out of work.
Amazon isn’t the only affiliate game in town. There are hundreds, if not thousands, of companies that use affiliate marketing as an extension of their traditional sales channels. Sooner or later, those companies will be targeted also.
The rape of affiliate marketers by tax-hungry politicians will surely continue until this multi-billion dollar channel evaporates.
For more information, visit PMA – Performance Marketing Association.
*Image by Liz West – Muffet
{ 4 comments… read them below or add one }
The economic crisis has hit states very hard. They are grabbing at any idea that floats in front of them whether well thought out or not. I agree with what you are saying and believe we will see many more attempts of States to tap into the internet revenue they believe they are missing. A strong response from the industry is necessary to limit these incursions. Perhaps State legislatures need to draft some laws that will allow States to generate revenue other than through taxes.
Well said.
rjameshorne.com
That could be financially devastating — Amazon dropping affiliates with zero notice for something completely out of the affiliates’ control. I guess it kind of pays not to have all your eggs in the same basket…
Personally, I’d setup an address / bank account, etc in another state. Considering things like this, maybe it’d be a good idea to have multiple businesses with multiple Amazon accounts in multiple states, just as a precautionary measure.
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That’s a great idea, RJ. Thanks for stopping by!