≡ Menu

CSN Terminates Hawaii, North Carolina and Rhode Island

CSN Has chosen to terminate affiliates from Hawaii, North Carolina and Rhode Island with less than a day’s notice.

Last year we listened to apologies over the last minute decision. It was blamed on the swiftness of the bill and not understanding the bill.

This year as we face similar legislation in several states we are again greeted by a last minute decision. What have we learned?

Last year we asked for communication, let us know, give us a warning we might be terminated so we could prepare; so we could have a plan.

We didn’t get it last year and we didn’t get it this year. Different states, different affiliates but the same treatment.

There was no lesson learned.

{ 2 comments… add one }

  • John Crenshaw July 3, 2009, 2:28 pm

    You are unfortunately caught in the middle of a war. Amazon and the other big players are still learning how to fight this one. Should they give more notice? Ideally yes, however, when the law passes they don’t get a waiting period. They have to immediately either sever ties, or start collecting taxes.

    You can be proactive too though. As an affiliate, keep and eye on things in your own state. If you see an internet sales tax bill starting to wind through the legislative process, consider yourself warned. If it passes, the big players WILL terminate you, since it is their most effective weapon, and only immediate defense.

    Above all, you should be more angry with your own state than Amazon. The state is the aggressor in this war, and you are the casualty. Amazon is actually on your side, which is why they have to sever the agreement. Severing the agreement is an economic response that ultimately makes the law counter productive by slightly damaging the economy. If the state realizes that it can only lose with an internet sales tax, it will go away, and Amazon will readily continue the affiliate relationship.

  • Melanie July 3, 2009, 4:17 pm

    Thanks for stopping by John. Actually I am one of the most proactive “affiliates”, I am monitoring every state with a sales tax. I am also working to improve the industry and I advocate a more united approach to all of our industry issues. I am doing this through NYAffiliateVoice and also through the Affiliate Voice organization, of which I am President and Founder.

    My concern is that some merchants did not reach out to affiliate any more than they did last year. We should have learned more from last year about the need for communication between the facets of our industry. The action in Hawaii clearly indicates there is a problem. The bill was spoken about here in March, I wrote about it again several times including around May 11 when it was delivered to the Governor for signature. It was at that time action was urgent. Merchants should have been aware and could have warned affiliates.

    I know all too well merchants will terminate reagrdless of the size of the affiliate. I am a New York Affiliate survivor.

    The problem recently is that many did not believe that merchants would terminate even though we have history to tell us otherwise.

    I am not angry with Amazon who has fought very hard towards the same goal. I have long said that Amazon led the way, they have been the most proactive merchant as evidenced by their legal actions on behalf of the industry.

    I do not have a problem with any merchant who chooses to terminate affiliates; it’s a business decision. Amazon gave warning to affiliates and I commend that.

    I also do not have issues with the states needing and wanting to collect the tax. The tax is due and it’s needed funds.

    I do think we, as an industry, still need to make changes to the way we deal with the after effects. Sometimes it is not the issue or problem but how you address it.

    On a side note, NY collected over $46 million in sales tax from approxiamately 30 merchants as a result of the redefined nexus definition. This year on pace to surpass the anticipated $62 million. As a New York resident, if that means better schools, larger better trained police and fire departments, improved safety, health and other services for elderly and impoverished than I am fine with the tax.

    For me this has always been about more than a tax issue, it is how we, the Internet marketing industry deal with it. That’s is the whole story behind NY Affiliate Voice.

    Thanks again for stopping by, I look forward to reading more comments.

Leave a Comment

Next post:

Previous post: