Amazon.com Shuts Down Amazon Associates Affiliate Program
Amazon.com has “jumped the gun” so to speak and shut down its affiliate program, the Amazon Associates Program, to associates who live in the State of North Carolina. Amazon.com is taking this unprecedented step of shutting down their affiliate program ahead of what they’re calling an “unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor.”
I have received a copy of an email sent by Amazon.com to a member of the Amazon.com Associates Program who is a North Carolina resident:
We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 26, 2009. This is a direct result of the unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 26. We were forced to take this unfortunate action in anticipation of actual enactment because of uncertainties surrounding the legislation’s effective date.
Please be assured that all qualifying referral fees earned prior to June 26, 2009 will be processed and paid in full in accordance with our regular referral fee schedule. Based on your account closure date of June 26, 2009, any final payments will be paid by September 1, 2009.In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to re-open our Associates program to North Carolina residents.
The North Carolina General Assembly’s website is http://www.ncleg.net/, and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/.
We have enjoyed working with you and other North Carolina-based participants in the Amazon Associates Program, and wish you all the best in your future.
Best Regards,
The Amazon Associates Team
In an effort to get more revenue for the State of North Carolina, the State has decided to pass legislation that would add a “click-thru tax”, a tax on sales that go through affiliates. So, if you are a website owner that provides “free content” on the internet and gain most of your revenue from affiliate marketing, you’re out of luck: the States, such as North Carolina, are starting to add taxes to your affiliate marketing efforts. New York has apparently already passed such a tax, and North Carolina’s affiliate tax is supposed to be on the law books soon.
I do believe, though, that Amazon.com’s shutting down North Carolina affiliates “jumps the gun” so to speak and it not warranted. The North Carolina tax on affiliate sales has not officially passed yet, and perhaps this is just an effort “not to have to pay” affiliates who have made them sales. No word on how many affiliates Amazon has in the State of North Carolina.
If you’re interested in following this there’s more information here and here and here and you can check the Performance Marketing Alliance for updates and what’s going on in other States.
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Jun 28th 2009
Thanks for your post, I wasn’t aware of this change to Amazon’s policy until I read this article. I host a few sites with amazon referrals embedded into articles. I’ll be sure to change my strategy!
Thanks,
Chris
Jun 28th 2009
This is highly demoralizing the affiliate marketing network. What could be the revenue that Govt. of North Carolina is expecting on bulldozing affiliate marketing? There are many affiliate networks existing like Google Affiliate Network, Advaliant (CPA Network), RevenueWire (Network), Video Professor (Education), Market Health (Health/Beauty). It seems an end to affiliate programmes has started in online marketing field.
Jun 29th 2009
“This is highly demoralizing the affiliate marketing network. What could be the revenue that Govt. of North Carolina is expecting on bulldozing affiliate marketing? There are many affiliate networks existing like Google Affiliate Network, Advaliant (CPA Network), RevenueWire (Network), Video Professor (Education), Market Health (Health/Beauty). It seems an end to affiliate programmes has started in online marketing field.” -Free SEO tips
I wonder if those other affiliate programs are taking steps to not go through Amazon’s issues and learn from their mistakes.
Jun 30th 2009
I agree it seems like jumping the gun. But really, without a strong reaction like this, there wouldn’t really be any incentive for the governments to ponder a little before reaching into our pockets.
I hope that there is enough groundswell generated by Amazon’s bold actions to set these thieving politicians straight.
Jul 1st 2009
I find the way some of these big companies behave to be quite frightening.
I also think Amazons associate program is pretty poor, most people don’t earn very much at all.
Jul 3rd 2009
To Be honest I won’t miss it much – I’ve been using the affiliate program for about 6 months and have only made a couple of bucks
Jul 3rd 2009
So if I understand this right, because I live in North Taxolina, whenever someone in another state clicks on an affiliate link on my website that is hosted on a server in another state, and buys something shipped to them from yet another state, with none of the transaction, data or merchandise actually passing through North Carolina, they expect to collect a tax above and beyond the income tax I pay simply because I, the website owner, live in North Carolina?
Yep, that sounds unconstitutional to me.
Jul 7th 2009
I can’t believe the states are putting such a tax, and you said that new york already passed one? that is ridiculous!
Jul 7th 2009
Wow, that’s bad news. I really hope all the other states don’t follow suit.
Jul 8th 2009
Amazon Associates affiliate program was not that rocking but still it’s getting off the market is a disheartening news.
Jul 8th 2009
While Amazon isn’t the greatest affiliate program, the government is hurting everyone with their taxation. Why should I have to pay a tax to North Carolina when I don’t live there?
Jul 14th 2009
That’s intense, I’m suprised to see such an aggressive letter from a company like amazon. I mean aggressive not to it’s affiliates, but towards the North Carolina State Government. I wonder what other states have this kind of stuff in the works.
Jul 17th 2009
It’s a shame that the government keeps adding taxes instead of reducing cost and expenditures. Perhaps we can start with their, (the politicians) over inflated salaries?
Jul 18th 2009
i had read that amazon was going to do this in response to the state of nc but i didn’t think they were going to pull through with it. i can only imagine which states are next. and just for an affiliate program, too!
Jul 23rd 2009
So now that the days have passed… did the law pass? If so, has it made a difference. Will California follow suit to help get out of our financial hole?
Nov 2nd 2009
Thank you for the inputs. I am just a new sprout when it comes to social media. But this blog really enlightens me. Keep on blogging!