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March 11th, 2011, 01:00 PM #1What States are Affiliate Friendly?
Let's get a list together and encourage them to advertise for affiliates and networks on ABW!
March 11th, 2011, 01:10 PM #2
There are five states with no state sales tax: Alaska, Oregon, Montana, New Hampshire and Delaware.
Those should be totally safe from nexus laws.
Beyond that, I would suggest considering the more conservative "Red" states, but even those aren't exempt. For instance, some Texas legislators have proposed affiliate nexus legislation.
March 11th, 2011, 01:15 PM #3
March 11th, 2011, 01:28 PM #4
MICHAEL says... I would suggest considering the more conservative "Red" states.
SNOWFINCH says... This forum is "conservative" enough.
March 11th, 2011, 01:47 PM #5
I would add Utah which does have state income tax but because of Overstock I doubt they will try an affiliate tax nexus. Nevada is another which is a tax heaven. Wyoming which makes money off of oil, coal, etc is a tax heaven.
March 11th, 2011, 01:47 PM #6
iNet how about targeting states like the ones mentioned to advertise on ABW as affiliate friendly?
March 12th, 2011, 02:15 PM #7
My biggest fear... I relocate to save my relationship with certain merchants and at some point those merchants decide to discontinue their affiliate program because regulation is making it too difficult to continue.
I wonder, is AM going to be relegated to just a few states over the next couple of years? I guess the survivors will reap the rewards as AM competition is eliminated by state lawmakers.Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!
March 12th, 2011, 04:15 PM #8
There will always be national retailers who have B&M in every state and that already collect sales tax in every state that has a sales tax. You may not like them and you may have to change direction re products, but Target, Walmart, Macys, Home Depot, Sears, etc. aren't going away.
March 12th, 2011, 04:55 PM #9
- Join Date
- January 18th, 2005
- lower advertising fee rates;
- lower clickthrough rates;
- lower conversion rates;
- fewer products;
- much less product information.
When these carrion circled, I did a quick review (of my main niche site) and concluded that Walmart, Sears, and Barnes & Noble combined offer fewer than 20% of the products which Amazon currently advertises on my niche site. When they do offer the same products, these retailers often use distorted, incorrect product titles, and their sites often lack even the most basic information consumers need to make a purchase decision.
And of course, for many products they do offer online, these retailers push consumers toward their local stores (for which publishers are paid no advertising fees).
Amazon already pays low advertising rates, but at least it provides a good experience for consumers.
Amazon is not my largest advertiser: Amazon's advertising fees were 27% of my January advertising revenue and 26% of my February advertising revenue. My largest advertiser (~50% of my total advertising revenue) sells only "downloadable" products (not subject to sales tax in California), so that relationship won't be impacted by an "advertising nexus" law in California. (Although much of my Amazon advertising fees are triggered by sales of downloadable products, which aren't subject to California sales tax, I'll still lose all the Amazon advertising fees if California passes the law.)
If I dropped Amazon's advertising, I'd see improved performance from other current advertisers who offer the same products, and I'd surely find a few additional advertisers -- but I'd probably only reclaim a few percent of the lost Amazon advertising revenue. (It will be hard to analyze, since this niche site is still in its early growth stage.)
Last edited by markwelch; March 12th, 2011 at 05:23 PM.
March 12th, 2011, 05:10 PM #10
My point was that the expansion of states imposing these tax laws will not be the end of affiliate marketing.
As to product availability, if you search, you can usually find the majority of products somewhere. Some of these alternatives pay less than Amazon. Target, for example, at least in my niches, pays much more.
Yes, most of these merchants provide little descriptive info, but you can find that and provide it on your own site.
As to conversion rates, it is really very difficult to make a true comparison with Amazon as Amazon counts by products rather than by sales. Is an Amazon 8% conversion rate really better than 4% on CJ? 2% on CJ? Some CJ merchants do report what is sold and how many, but not so for SAS. If there is an actual way to compare these, I'd like to know.
March 12th, 2011, 06:25 PM #11
But still, Amazon does convert very well - better than most merchants. People trust them, many already have accounts, and their shopping cart is very well streamlined. They've had many, many years and millions of customers to optimize the checkout process with.
Last edited by MichaelColey; March 12th, 2011 at 06:27 PM.
March 12th, 2011, 07:32 PM #12I wonder, is AM going to be relegated to just a few states over the next couple of years? I guess the survivors will reap the rewards as AM competition is eliminated by state lawmakers.
March 13th, 2011, 12:29 AM #13
If a state has no sales tax you are probably the safest. Of the choice: Alaska, Oregon, Montana, New Hampshire and Delaware; Oregon, for me, is the only plausible choice. However with around 10% in state income tax and a governor and both houses being democrats, it becomes a lot less attractive. Who wants to move now and have to move again in 3 years.
Florida is my favorite because it has no income tax (+10% savings versus Oregon) and the 2 houses and governor are "red". It also seems to have a history of being red (at the state level).
PS: I'm an independent, please do not shoot the messenger.
Also in Texas the "affiliate nexus" law was sponsored by a democrat. I suspect it will not go very far (both houses and governor are red).
Last edited by delsol; March 13th, 2011 at 12:34 AM.
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