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  1. #1
    Believe knight01's Avatar
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    Closing program
    Just got an email that Beach Audio is closing their affiliate program due to affiliate tax concerns.

    Effective on 9-1-09 Cookie will be 1 day until the end of the program on 9-30-09.

    sigh.
    Someday starts today
    Military Discounts

  2. #2
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    Quote Originally Posted by knight01
    Just got an email that Beach Audio is closing their affiliate program due to affiliate tax concerns.

    Effective on 9-1-09 Cookie will be 1 day until the end of the program on 9-30-09.

    sigh.
    They are actually putting on "pause" until they feel the tax situation settles. We have been working with them and understand their concerns, a letter they got last week from a state finally moved them to this direction. We just came from a very successful affiliate summit, they invested lots of time and monies, trust me, this was not an easy decision for them.

    Bear with them and give them time to sort through the tax mess.

    They are good people, from the owner to the staff, they will do what is right as far as the commisisons due and cookie durations. Hang in there buddy ..
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
    www.andyrodriguez.com | E: abw@andyrodriguez.com | P: (888) 931-ANDY (2639) | Skype: affiliatedoctor | AIM & MSN: AffiliateDoctor | Subscribe To Our ABW Forum Posts | Follow me on Twitter | Join Our Affiliate Programs

  3. #3
    ABW Ambassador Vrindavan's Avatar
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    not sure if this will affect many other affiliate programs as well ?

  4. #4
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by Andy Rodriguez
    They are actually putting on "pause" until they feel the tax situation settles.
    The "tax situation" is never going to "settle". It's going to continue to be an issue for years to come.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  5. #5
    ABW Ambassador
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    I agree with Mr. Coley

  6. #6
    Beachy Bill's Avatar
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    Quote Originally Posted by Merchant Consultant Team
    I agree with Mr. Coley
    +2

    In fact, I believe it will get even more confusing before it begins to "settle."
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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  7. #7
    Comfortably Numb John Powell's Avatar
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    Seems like we would be better off if all merchants had to charge tax according to the purchasers state no matter how the customer came to their site. I'm not saying I'm really for that, but it would level the playing field.


  8. #8
    http and a telephoto
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    Quote Originally Posted by John Powell
    Seems like we would be better off if all merchants had to charge tax according to the purchasers state no matter how the customer came to their site. I'm not saying I'm really for that, but it would level the playing field.
    Easier said than done.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  9. #9
    ABW Ambassador Vrindavan's Avatar
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    customer/billing address or delivery address ?

  10. #10
    Moderator bibby's Avatar
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    Quote Originally Posted by Andy Rodriguez
    They are actually putting on "pause" until they feel the tax situation settles. We have been working with them and understand their concerns, a letter they got last week from a state finally moved them to this direction. We just came from a very successful affiliate summit, they invested lots of time and monies, trust me, this was not an easy decision for them.

    Bear with them and give them time to sort through the tax mess.

    They are good people, from the owner to the staff, they will do what is right as far as the commisisons due and cookie durations. Hang in there buddy ..
    I agree they are good people. I have dealt with Peggy and she's been great to work with. I will give them as much time as they need and hope they will return to affilaite marketing soon.

    I'm sad today because they are the type of people that are good to work with. They have integrity and act in an ethical way.

  11. #11
    Advocate mellie's Avatar
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    Quote Originally Posted by Vrindavan
    not sure if this will affect many other affiliate programs as well ?
    In the past week or so I've spoken to other merchants who are also considering such action. Please understand merchants do not easily make this decision.

    Internet sales tax / advertising tax / Amazon tax whatever you want to call it, is EXPLODING this year.
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  12. #12
    http and a telephoto
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    Quote Originally Posted by Vrindavan
    customer/billing address or delivery address ?
    There are 2 ways states determine if tax is due and what rate is paid. One is by merchant location, the other is by order delivery address. Billing address is not used to determine tax status or rate. This is one of the things that needs to be standardized.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  13. #13
    Affiliate Manager Peggy - BeachAudio's Avatar
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    Quote Originally Posted by bibby
    I agree they are good people. I have dealt with Peggy and she's been great to work with. I will give them as much time as they need and hope they will return to affilaite marketing soon.

    I'm sad today because they are the type of people that are good to work with. They have integrity and act in an ethical way.
    Thank you so much for your kind words. I do really appreciate it. I am extremely sad myself about the whole situation. I started this program 9 months ago and felt we were making alot of progress, working with great people and learning alot from the industry. We even started working with Andy Rodriguez and his team and we were off to a great start. This program is like my baby.

    We personally met and talked to many of you at the Affiliate Summit and our intention was to move forward full blast with our Affiliate Program. We invested alot of time, effort and money trying to make it a great program. We were willing to work around the whole NY situation, but it seems that some states are getting extremely aggressive in their quest to collect taxes, even making taxes retroactive. This would put our whole business in jeopardy.

    It was an extremely hard decision for the company, and especially hard for me, but it was decided that we need to place our program on pause for the time being. We know it may take a while, but we are hoping that eventually there will be a uniform internet sales tax making it feasible for us to reinstate our program.

    I know it may not make things better, but I do want to emphasize the fact that we really appreciate the effort every single one of you made to grow our program and the support you gave us. I personally hope that I get an opportunity to work with you again in the very near future.

    Sincerely,

    Peggy Diaz
    www.beachaudio.com
    peggy@beachaudio.com
    877-804-0495 x 7004

  14. #14
    Moderator PDXreader's Avatar
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    Thank you for sharing with us Peggy.
    J. Duffield Affiliate Manager at Snow Consulting
    Let's Connect-PassTheSEO|#GSEG|Twitter|LinkedIn|Blog "Knowledge is Power."

  15. #15
    Believe knight01's Avatar
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    Unfortunately using the term 'paused' instead of 'closed' may be accurate, but the tax situation isn't going to get any easier any time soon. I can understand where Peggy and BA are coming from with regard to the states trying to collect taxes retroactively, however 'pausing' the program now doesn't unring that bell for them.

    I don't have any hard feelings toward anyone involved with it, just disappointed as I think BA has a lot of up side potential in the AM industry.

    In the end, while this may be aimed currently at merchants with affiliates the states will not leave it at that. There will be some type of sales tax pushed onto all online retailers. Working with affiliates to find a way to get ahead of the curve is a better use of the time than retreating and hoping the next step isn't going to happen.
    Someday starts today
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  16. #16
    Life is Supposed to be Fun! Rexanne's Avatar
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    Quote Originally Posted by knight01

    In the end, while this may be aimed currently at merchants with affiliates the states will not leave it at that. There will be some type of sales tax pushed onto all online retailers. Working with affiliates to find a way to get ahead of the curve is a better use of the time than retreating and hoping the next step isn't going to happen.
    I agree. Well said, Knight01.
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


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