One of the more positive results of the NY Affiliate Tax is that I have had a chance to work with some very amazing people. I’ve profiled a few of these amazing people in “Stories of NY Affiliates” including the stories of Kevin, Herb, Jannis and others. Working with people on any project often gives you a chance to see the inner person.

For many reasons, getting to know Kim Salvino has been an honor and a privilege.  Before the Albany NY July 28 meeting I had met Kim a time or two, at that time she was the affiliate program manager for 4Checks. With all the initial confusion over the tax law, 4Checks had to reverse its stance and made a last minute decision to remove NY Affiliates. That decision hit many NY affiliates hard; it hit Kim equally hard. As we began to plan the July 28 meeting to work on a solution, we invited Kim to attend. We did this because we needed to understand her company’s position; we also need merchant input. Inviting Kim was one of the best moves we made. (Please note, as a result of a lot of effort from everyone, 4Checks reinstated NY affiliates in early August.)

Kim’s bravery in attending a meeting to face the very same affiliates she had removed from her program and the dedication with which she worked on implementing a solution, demonstrates some of the many qualities that make her an asset to the industry. It also speaks volumes about her dedication to her affiliates and to her merchant.

On a personal level, when my strength was faltering it was her dedication and her refusal to sit back that was a source of encouragement. After all was done, I learned that it was our passion that kept her going.  I think it was a very symbiotic relationship; we inspired and encouraged one another. We - affiliates, merchants and network, worked together towards a common goal. As I have gotten to know Kim it has become clear that Kim truly understands and believes the phrase “valued partner”. Just as Kim values her relationships with merchants and affiliates, I value her, both as a friend and a business associate and she has most certainly earned my trust. 

I asked Kim why she fought so hard on behalf of her NY Affiliates; it would have been much easier to just sit back. Kim confesses that she was crushed when forced to discontinue working with NY Affiliates. Though nervous, Kim was eager to be a part of the meeting in Albany. At the end of the meeting, like us, she left with a renewed spirit and an understanding of the action needed. Kim continued, 4Checks “recognized the value of our affiliates and were willing to do what was needed to move forward. How could anyone sit back and do nothing is what I would like to ask. A passionate group took the initiative to spearhead a discussion with a lawyer, well versed in NY tax law, to seek a way to comply. I was just lucky enough to be invited.”

Kim continues, “The biggest brand name, the largest inventory – none of that matters in the affiliate space if trust is non-existent. My affiliates trusted me to pay them for the traffic they referred that converted to sales, and they invested a lot of time and energy into building sites and promoting my brands. They trusted me to advocate on their behalf internally and I wasn’t about to sit back and watch so many lose their income.”

In my opinion, the actions of 4Checks and Kim’s passion and dedication to both merchant and affiliates has helped reestablish some of the trust that was shattered in May and June of last year. Although no longer with 4Checks, the 4Checks program has shown that they still have the same standards and values. The 4Checks program is a NY Affiliate Friendly merchant with programs located at ShareASale network and Kowabunga (MyAP)

Kim is now at Buy.at network and holds the position of Senior Delivery Manager. Kim Salvino is a great addition to the Buy.at team, bringing many strengths and talents to a growing and quality network. Kim explained her position, “I work on the account management side, overseeing a team that provides full service program management to Buy.at’s merchants. Right now, I am concentrating on two major initiatives – strengthening and growing our existing programs on the buy.at network and seeking new merchants that will make a good fit for our growing affiliate base.”

Kim continued, “At Summit, I was asked what makes buy.at different. I could say the interface and reporting is flexible and accurate. I could tell you that we offer proactive account management and that we pioneered the “open network.” I could tell you that as a team, you will be hard pressed to find more passionate individuals who want the best for this industry and who give 125% every day.”

But it is more than that.  Buy.at’s open network policy and their dedication to both advertisers and publishers is a strong foundation, but as Kim says, “At the end of the day though, it’s about trust and value, two things our team holds sacred and strives to be worthy of and provide every day.”

It is that very philosophy that leads me to believe that great things lie ahead. 

Trust and value, flowing both ways; just what many are looking for.

Prior to June 1, 2008, NY affiliates had what they thought were valued relationships with many merchants. It is a fact that thousands of NY affiliates were terminated by hundreds of merchants on or around May 31. NY Affiliates have lost thousands and thousands of dollars in income, income that is gone for good. NY affiliates continue to be terminated from programs and are not being reinstated due to a lack of preparedness of the affiliate industry, a continued lack of knowledge about the issue or by failure to act. All Networks are going to have to help get the word out about how to be able to continue to work with NY Affiliates. Networks should not be silent.

Over the past week, I have asked merchants and program managers to reach out to NY Affiliates in one simple way. Let me know you are a NY Affiliate Friendly merchant, the network you are on and the reason you are NY Affiliate Friendly, and I’ll list you. It’s a simple list of programs but it accomplishes much more than that.  Be proud that you work with all affiliates, stand up and shout you value all affiliates. Seize the chance to get noticed by quality NY affiliates seeking merchants to work with. Let all affiliates know you are a merchant that truly values the partnership. Merchants should not be silent.

Unfortunately, the industry as a whole is still not prepared to deal with the NY Affiliate tax situation. Many merchants still refuse to allow NY Affiliates into their programs. Many other merchants have not added terms to their programs, yet they say “Hey, NY affiliates, don’t worry, we are well under the threshold.” Well, you know what, I am not reassured and I do worry. What happens tomorrow if the $10,000 threshold is met? We heard many reassurances and promises in May that we were safe. We all know how that worked.

Affiliates have little or no protection; we can be terminated at will. Every affiliate should read the terms of a typical agreement. You, as an affiliate, can be terminated and commissions voided at will, with or without just cause. In May and June, thousands of ethical NY affiliates were terminated from merchant programs simply because they were New York affiliates, sometimes with less than 24 hours notice. In some cases, links were deactivated ahead of time. Some merchants even decided they would deactivate affiliates retroactively. That means that on a date in June, NY affiliates were told they were deactived effective May 30 and any commissions earned were taken back. It is probably illegal to take back commissions earned and retroactively deactivate, but to my knowledge, that aspect of this issue has never been addressed in a formal manner by any network or merchant.

Every affiliate, no matter where they live and do business, should take notice of what happened to NY Affiliates. I know I have said it before but it bears repeating. This is not just a NY Tax issue; it’s not even just a NY issue or a tax issue. It is an industry issue. Affiliates, merchants and networks need to work together to ensure that the industry moves forward. Of course, many issues need to be addressed including but not limited to ethical practices, parasites, and BHO’s.  Improving the contracts or terms of service between affiliates and merchants is imperative. The industry cannot survive with one-sided contracts offering protection to only one party.

Affiliates cannot afford to be silent.

In May we heard silence and in some ways, that silence continues. To me that silence says more than any speech, blog or forum post ever could. In this instance, silence is not golden.

Over the past week or so I have been trying to put together a list of NY Affiliate Friendly merchants. There seems to be confusion with the definition.

A New York Affiliate Friendly Merchant is not just a merchant who currently accepts NY affiliates. A NY Affiliate Friendly Merchant is one who not only accepts NY affiliates today, but is also prepared for tomorrow, by setting up their programs so that NY affiliates do not have to be concerned about losing the “valued partnership” because of geography. They are either set up to accept sales tax, prepared to do so, or have the terms set up to rebut a nexus.

NY Affiliate Friendly status is obtained by meeting one of six conditions.

• NY based
• Charging NY sales tax
• Implemented the 2 step solution – Agreement to special terms restricting direct solicitation and signed affidavits in May of each year.
• Non taxable items sold
• Lead program or flat paid per click
• Under $10,000 threshold AND instituted special terms restricting direct solicitation that will offer protection if threshold is met.

For me, NY Affiliate Friendly means ready for today and ready for tomorrow.