Online affiliate marketing used to be a lot easier, Google Adwords had their shot – limiting affiliate listings – and now a growing number of states in the US are implementing taxation policies that are driving out many major vendors that use affiliate marketing.
The policy started last year, most notably in New York, and as Kevin Lee points out has implications way beyond just the obvious affiliates.
On Friday, Rhode Island issued notices to over 100 online businesses that they require states sales tax to be collected. Three major businesses – Amazon, Overstock and BlueNile – told their Rhode Island based affiliates that they would no longer be able to promote their products, the Providence Journal reported.
As was announced earlier in the week, Overstock had axed North Carolina, Rhode Island, California and Hawaii affiliates.
The Terminator aka the Governor of California Arnold Schwarzenegger joined Hawaii Governor Linda Lingle to veto these taxes. One wonders how well online marketers can use the web to get other politicians to change their minds about these taxes.
Clickz reported that some companies are appealing the laws in New York. If they are successful in one maybe they will be willing to go after the others.