California Law Causes Cessation of Affiliate Commissions!
New California Law requiring State Sales Tax to be charged on all Internet Sales in or for delivery to California forces many companies to Cease Paying Affiliate Commissions to California Affiliates.
How great an impact this will have on Affiliates who live in California is yet unclear. I have personally received emails from four vendors of Tangible Products in the past week. They will no longer be paying commissions to California Affiliate Marketers. They are announcing the Immediate Termination of California Affiliates!
This Law, which went into effect on July 1st 2011, is certainly No Boost to our current economy. Although California may receive revenue from taxation of Online Sales… they stand to Loose More than they could possibly gain. It only makes sense that Affiliate Marketers earning commissions in “the Golden State” would Spend and Re-Invest that Income into their Local and State Communities. No Commissions… No Revenue! California once again “cuts of it’s nose, to spite it’s face!
I am waiting to see how and if California’s Internet Sales Tax Law will effect sales of Non-Tangible Products, eBook Sales, Information Marketing, etc (Info Marketing)… but I am certainly praying that most vendors will find a way to continue to support their California based Affiliates.
There is no doubt in my mind that solutions for this problem are only a matter of Creativity and Time. However, for the present, you can expect to be contacted by some of your Affiliate Vendors who are more than willing to Terminate your Affiliation.
In the meantime, we’ll see how this plays out… and just How Much it may cost us!
Note: Be sure to Read the TOS of each Affiliate Opportunity, before you Join, and make sure they are going to Support Californians who Earn Income from Affiliate Sales.
May God grant you Abundance,
Administrator of the Social Seed Network