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  1. #1
    The affiliate formerly known as ojmoo
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    Each of the Big 3 Networks have a nexus in NY
    According to the contact us of linkshare:
    New York
    215 Park Avenue South
    8th Floor
    New York, NY 10003
    Phone : 646 943 8200
    Fax : 646 943 8204
    contact@linkshare.com

    other locations
    Now as far as I know besides an initial fee, linkshare get a percentage of all sales, just as affiliates do, thus making them just as much of an affiliate as anyone else. They obviously have a nexus in NY as listed above. Doesn't that mean that every linkshare merchant has to follow the NY law regardless of the rest of the affiliates since linkshare (with a NY nexus) collects commissions on every sale?
    Last edited by Haiko de Poel, Jr.; June 2nd, 2008 at 04:33 PM. Reason: edited title from LS has a nexus to each of the big three
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  2. #2
    The affiliate formerly known as ojmoo
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    I just checked commissions junction has a nexus in NY too

    New York, NY
    Commission Junction
    370 Lexington Ave.
    Suite 908
    New York, NY 10017
    United States
    Phone: 212-471-9600
    Expert who says Moo

    a.k.a. OJMOO

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  3. #3
    The affiliate formerly known as ojmoo
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    Doubleclick/Performics International HEADQUARTERS are in NY
    DOUBLECLICK INTERNATIONAL
    HEADQUARTERS 111 Eighth Avenue, 10th Floor
    New York, NY 10011
    212.271.2542
    Expert who says Moo

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  4. #4
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    I haven't been following the precise details of all of the NY fallout, but this point here, seems to me, to be an issue. Anyone got input on it?

  5. #5
    http and a telephoto
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    Thanks for summarizing this, I had questions related to that also and asked several people about it that just shrugged it off.

    Maybe they are of the opinion that Network Fees aren't commissions? However the fee is based on affiliate commissions. Will be interested in how this plays.
    Deborah Carney
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  6. #6
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    An argument under the new law could be that if a NY-based network collects commissions based on sales, all NY sales are to be taxed, even if none of the affiliates promoting the merchant are NY-based.

    Even if they do not think that the networks fall under the specifics of the new law, I would bet that the NY Tax people would argue that the network relationship does create the dreaded nexus under existing law, and that that the network relationship is enough to require collecting sales tax, to the extent that they impose the registering-collecting-filing and paying requirement on merchants not otherwise under their purview, and let these merchants also fight it out in court.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  7. #7
    Member
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    One of the questions posed in the Linkshare conference call had to do with responsibilty (I don't think that is same as nexus) for the tax. Whether it was the merchant or the network. The answer was the merchant. It is hard to believe if Linkshare, or any other network, has a nexus they are staying so quiet on this issue but I don't really know the answer. IMHO the networks are looking it as an issue between affiliates and merchants.

  8. #8
    http and a telephoto
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    The networks aren't responsible for the sales tax, that isn't the issue. The issue is if the network has nexus in NYS, do the merchants associated with that network have nexus from the association. If paying affiliates in NYS for facilitating sales creates nexus, the networks are a facilitator as well in that process.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  9. #9
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Further, folks like ValueClick (CJ's parent) run ad networks... and NY is saying it ain't an "ad" if it's compensated on a sales-volume basis...

    Events in NY, like LS Symposium, that are for recruiting and growing their sales force of volume-based affiliates, will likely need clarification as well.

    The whole thing is, I don't think NY will, in the long run, get away with trying to redefine what a nexus really is (and has been).

    In the short term, they're disrupting an awful lot of commerce with their attempted power grab. I hope the court smacks them down hard, both for the assertion of unheld and unchecked powers and the speed with which they have wielded it.

  10. #10
    The affiliate formerly known as ojmoo
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    I don't think they will get away with it either. But it won't be because of the NY affiliates, we are too small and too isolated. But the networks are major companies and if they see that their livelihood is threatened they will fight tooth and nail in a way that affiliates can't.

    The best thing the affiliates can do is not to fight themselves, it is clearly impossible, but to get the major networks to fight for them with seems to be all the major networks except SAS who I believe only has an Illinois nexus :-)

    What really should happen is that any merchant that drops an affiliate should be sent back an email reminding them that the network they are on (if CJ, Linkshare, Performics, maybe others I hadn't checked) has a nexus in NY and that dropping us will not change thier tax status.
    Expert who says Moo

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