1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Amazon Affiliate - Notice of Contract Termination Due to Potential New California Law

Discussion in 'Affiliate Programs' started by digdigdug, Jun 29, 2011.

  1. digdigdug

    digdigdug Junior Member

    Joined:
    May 23, 2016
    Messages:
    163
    Likes Received:
    1
    Gender:
    Male
  2. timothywcrane

    timothywcrane Power Member

    Joined:
    Apr 25, 2009
    Messages:
    590
    Likes Received:
    236
    Occupation:
    Internet Promotion Management
    Location:
    USA
    Home Page:
    Yeah, I got it, just change your payment info. There are other states they dumped too for the same reason. Find a friend or relative out of state and use their addo, etc... And the law has already passed, it is just not yet been implemented.
     
  3. terry56

    terry56 Junior Member

    Joined:
    Aug 8, 2009
    Messages:
    126
    Likes Received:
    280
    Occupation:
    Electrical Engineer
    Location:
    Camarillo,CA.
    Yeah, I got one...I dont know of anybody in another state though, so I am screwed!
     
  4. Steeky

    Steeky Regular Member

    Joined:
    Jan 13, 2007
    Messages:
    454
    Likes Received:
    163
    dumb politicians
     
  5. wallofiron

    wallofiron Power Member

    Joined:
    Nov 24, 2009
    Messages:
    524
    Likes Received:
    68
    but then you will have to file dual state tax returns no?
     
  6. superaff1984

    superaff1984 Power Member

    Joined:
    Jun 16, 2010
    Messages:
    619
    Likes Received:
    20
    Location:
    West Los Angeles, CA
    Yea I'm from LA as well, I live in West LA (Westchester). I am just curious what type of products were you marketing?

    Just to let you know this only applies to people shipping merchandise. You can always setup a foreign corporation somewhere.
     
  7. clin407

    clin407 Regular Member

    Joined:
    Apr 6, 2011
    Messages:
    418
    Likes Received:
    129
    Goddamn, I just got the final email, all California amazon affilaites are officially terminated. What timing =\
     
  8. valueman2u

    valueman2u Newbie

    Joined:
    Nov 26, 2008
    Messages:
    8
    Likes Received:
    1
    I just got the email too. They passed the bill and I am out $1k/month.. Got to find a new forwarding address from out of state. I wonder what other states are restricted as well..
     
  9. Ed4252

    Ed4252 Power Member

    Joined:
    Feb 23, 2009
    Messages:
    603
    Likes Received:
    90
    Is it possible to just list a fake address and then request amazon gc's electronically as payment?
     
  10. AmIRegistered

    AmIRegistered Newbie

    Joined:
    Nov 19, 2010
    Messages:
    11
    Likes Received:
    0
    Since I no longer have anything to lose, I changed my address to a fake one and initiated direct deposits into an online savings account. I'm pretty sure my account will be terminated but it's worth a try.
     
  11. goads

    goads Junior Member

    Joined:
    Mar 2, 2010
    Messages:
    164
    Likes Received:
    37
    Occupation:
    SEO
    Location:
    Newport Beach, CA
    Home Page:
    Set up a nevada corp with new SS# and use nevada mailing address.
     
  12. xollls

    xollls Junior Member

    Joined:
    Dec 23, 2009
    Messages:
    187
    Likes Received:
    48
    Location:
    SoCal
    Did you use a service provider in CA to this or you did it yourself?

    This whole thing is a mess.
     
  13. cpalee71

    cpalee71 Newbie

    Joined:
    Apr 3, 2008
    Messages:
    17
    Likes Received:
    3
    Damn I just go the termination email too.
     
  14. cpalee71

    cpalee71 Newbie

    Joined:
    Apr 3, 2008
    Messages:
    17
    Likes Received:
    3
    Damn, I just got the termination email too.
     
  15. efwebs

    efwebs Regular Member

    Joined:
    Aug 9, 2010
    Messages:
    424
    Likes Received:
    137
    Home Page:
    Just buy a mailbox in another state.
     
  16. bizboy949

    bizboy949 Newbie

    Joined:
    Jun 27, 2011
    Messages:
    29
    Likes Received:
    0
    I just this email as well. Would this really work?
     
  17. timothywcrane

    timothywcrane Power Member

    Joined:
    Apr 25, 2009
    Messages:
    590
    Likes Received:
    236
    Occupation:
    Internet Promotion Management
    Location:
    USA
    Home Page:
    WOW, got my final email, AFTER updating my address and phone number out of state. The funny thing is that I really have moved, but the account got closed anyway. Had to email them, let's see what happens.
     
  18. joewendt

    joewendt Newbie

    Joined:
    Jun 2, 2011
    Messages:
    30
    Likes Received:
    141
    Amazon has dropped affiliate programs in Illinois, Connecticut, Arkansas and now California. Other states are considering or pushing similar bills that basically redefine a company's in state presence. Overstock also withdrew from certain markets because of this.

    These politicians reach new heights of idiocy every day. They have no idea this will likely cost them more money than it generates. Think about it. If a state has affiliates and that now constitutes a physical presence of the merchant in that state, the merchant now has to charge sales tax to all customers in that state.

    When the merchant terminates their affiliate program in that state (Amazon is the biggest), the state can't collect the sales tax they were counting on from the bill's passage. In addition, all the people in that affiliate program in that state are no longer earning. That means less taxable income for that state. Further, since they're taking income out of people's pockets, they have less money to spend and therefore less sales tax is collected. Brilliant plan!

    There are a few ways to get around this stupidity:

    1. Find a friend or relative in a business-friendly state and use their address (just be prepared for proof of residency issues)
    2. Have a friend or relative - that you trust - in a business-friendly state set up an affiliate account for you in their name (be prepared to sort out the tax situation properly so you don't get in trouble)
    3. Hire a "resident agent" in Delaware, Nevada or Wyoming and form an LLC. Get an EIN from the IRS (it's free), which is basically the business's social security number. The business address is now that of the LLC and you have the added benefit of being more insulated from liability.

    (I'm not a lawyer or CPA, so if you take this advice, you do so at your own risk :) )

    BTW, I set up an LLC for my own online endeavors and it's pretty easy to do.
     
  19. xollls

    xollls Junior Member

    Joined:
    Dec 23, 2009
    Messages:
    187
    Likes Received:
    48
    Location:
    SoCal
    Really dumb move from states that pass this. Not one 1 penny has been collected by them since they have passed this Law. Companies (like Fatwallet) just move to friendly states.
     
  20. xenoz

    xenoz Regular Member

    Joined:
    Jan 27, 2009
    Messages:
    320
    Likes Received:
    664
    Yup! Just read...

    Does anyone know if this affects your ability to publish Kindle Books?

    Is so, THIS REALLY FUCKIN SUCKS!