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  1. #1
    notary sojac Herb ԿԬ's Avatar
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    Merchants Terminating PA Affiliates
    yup, Pennsylvania got greedier. Time for a new section here for PA as merchants may start dropping like flies.

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
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    Quoteed from gcarson's post:
    Dear:

    We regret to inform you that Fingerhut Direct Marketing, Inc has removed you from their affiliate program.

    Below is a message from the advertiser:

    Dear Affiliate:

    Unfortunately, due to clarifications to the law in Pennsylvania, we feel it is prudent to discontinue our relationship with all Pennsylvania affiliates. Bluestem Brands, Inc ("Bluestem") (d/b/a Fingerhut and d/b/a Gettington) has no tax nexus in any state other than Minnesota, the home of our headquarters.

    Accordingly, Bluestem hereby immediately terminates all affiliate agreements currently in place with affiliates who are legal or taxpaying residents of the Commonwealth of Pennsylvania, as of December 1, 2011, (the Affected Affiliates"). Any money due to Affected Affiliates as of December 1, 2011 will be paid in the ordinary course. In connection with termination of these agreements, all Affected Affiliates should immediately remove an/or cease use of all references to Fingerhut and/or Gettington in or on any of your affiliate materials.

    We regret that Bluestem has been put in this position and wish you all the best in your future business endeavors.

    Yours truly,

    Chidam Chidambaram
    Vice President, Marketing

  3. #3
    Speechless OTProf's Avatar
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    Ouch. So sorry for PA affiliates and horrible "Immediately" timing at this time of year.

  4. #4
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    So far I have been terminated from these Avantlink.com merchants (i think they are all owned by the same parent company):

    BackCountry.com
    DepartmentOfGoods.com
    BonkTown.com
    ChainLove.com
    WhiskeyMilitia.com
    SteepandCheap.com
    HucknRoll.com
    RealCyclist.com
    Dogfunk.com

    I run an outdoor deal website and I used avantlinks deal of the day feature to promote all of these.. So it pretty much wiped out my entire site.

  5. #5
    OPM and Moderator Chuck Hamrick's Avatar
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    They are all site for BackCountry.com. I talked to AvantLink today and that was the only merchant they were aware if who dropped PA affiliates.

  6. #6
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    Well. We got screwed too:

    Dear MacMall Affiliate:

    As you may be aware, Pennsylvania Department of Revenue issued a press release and a sales and use tax bulletin on December 1, 2011, which provides guidance concerning which activities establish nexus in Pennsylvania and therefore may obligate remote sellers to collect and remit sales tax to the state. The Pennsylvania Department of Revenue is basing this guidance on their interpretation of existing tax law and the United States Constitution. According to the bulletin, examples of maintaining a place of business in Pennsylvania (and thus establishing nexus) include, but are not limited to: (a) a contractual relationship with a Pennsylvania affiliate in which the affiliate has a link on their website that encourages purchasers to place orders and the affiliate receives consideration for the contractual relationship; and (b) soliciting orders from Pennsylvania purchasers via click-through technology from the website of a Pennsylvania affiliate.

    MacMall has no sales tax nexus in the state of Pennsylvania, but due to the Pennsylvanias decision, we now believe its prudent to temporarily discontinue our existing relationships with our current affiliates in the State of Pennsylvania.

    Based on these events, MacMall reluctantly exercises its right under section 6(b) of the Commission Junction Publisher Service Agreement (Publisher Service Agreement - US | CJ US) to terminate our affiliate agreement with you effective December 9, 2011. Any commissions based on sales through this date will be paid by the second week of January 2012. Any commissions earned after December 9, 2011 by Pennsylvania based publishers, will be reversed.

    We apologize for any inconvenience this may cause as we are deeply aware of your contribution and loyalty to MacMall during your participation in our affiliate program. We remain hopeful that this unconstitutional legislation will eventually be repealed, at which point we would be happy to resume working together.

    Thank you for your participation in the MacMall Affiliate Program.
    Amazon has not done it yet but I expect them to do so on Monday if not sooner

  7. #7
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    I would be shocked if Amazon cuts anyone right now. In PA it is a different story for Amazon than it was in other states. Even if they cut all affiliates, they are still under the gun because they have 3 fulfillment centers in PA. This means regardless of the affiliate chop, Amazon will still be required to pay the taxes.

    What I do not get is businesses has 60 days to comply with this enforcement, but why are PA affiliates getting axed already?

  8. #8
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    Quote Originally Posted by jtoddv View Post
    I would be shocked if Amazon cuts anyone right now. In PA it is a different story for Amazon than it was in other states. Even if they cut all affiliates, they are still under the gun because they have 3 fulfillment centers in PA. This means regardless of the affiliate chop, Amazon will still be required to pay the taxes.

    What I do not get is businesses has 60 days to comply with this enforcement, but why are PA affiliates getting axed already?
    Well, they are giving us till December 9th. I guess one week notice is better than nothing. I do hope Amazon is kind enough to keep PA affiliates around for a while.... I am not optimistic though.

  9. #9
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    Here is my list so far:
    Overstock.com
    Gardener's Supply
    Backcountry.com
    DogFunk.com
    1-800-PetMeds

  10. #10
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    @Hummas I got the Overstock termination letter today as well. I expect Amazon to do that too even though Amazon's case is more complicated. Overstock is really shameless. Giving 1 day notice before terminating when they have till February to comply. At least guys like MacMall gave us a week so we could remove the links.

    I am really disappointed with the current governor of PA. Apparently, he is OK with the way this is interpreted... I am personally trying to get out of the affiliate business altogether. The way some of these merchants have treated us after all the sales we delivered to them ...

  11. #11
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    Dropping Like Flies
    Dear Affiliate:

    Unfortunately, due to clarifications to the law in Pennsylvania, Motorcycle Superstore has deemed it necessary to terminate all relationships with Pennsylvania based online marketing affiliates. Our records indicate that you or your company has such a relationship with Motorcycle Superstore through Commission Junction. Therefore, the applicable affiliate agreement administered through Commission Junction will be terminated immediately. You should consider removing any and all links to the Motorcycle Superstore website through this program because commissions will no longer be paid as of December 22, 2011.

  12. #12
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    After all the hard work promoting sites we get dropped.
    After spending years building online marketing sites etc and all the hard work promoting those sites we get dropped. I cant even begin to estimate the money I put into these sites. My question is what states will follow Pa.?

  13. #13
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    Maybe the media should get hold of this.
    I think it should be made very public what these merchants are doing and how they are doing it.

  14. #14
    notary sojac Herb ԿԬ's Avatar
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    Quote Originally Posted by droppedlikearock View Post
    After spending years building online marketing sites etc and all the hard work promoting those sites we get dropped. I cant even begin to estimate the money I put into these sites. My question is what states will follow Pa.?
    It's very easy to be insulted when a merchant does this. I remember being in shock when the New York Sales Tax debacle happened. I lost over 100 merchants, almost at once. I've skimmed the PA tax announcement and it seems even more harsh so I don't blame those merchants who feel there may be some liability problem keeping the PA affiliates.

  15. #15
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    Merchants that I have been dropped from due to the PA Nexus:

    CelebrateExpress.com
    BuyCostumes.com
    OrientalTrading.com

    Which is just the start of what is going to be VERY Devastating to my business.

    How do we fight this? We need to get this law overturned !!

    What really gets me is that 2 of these companies are keeping NY Affiliates, but dropping PA - its state discrimination because NY brings in higher $$$$. I know it is a company decision, but that makes it hurt worse !!

  16. #16
    Full Member gcarson's Avatar
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    Quote Originally Posted by ilashes View Post
    How do we fight this? We need to get this law overturned !!
    Unfortunately, its not a new law. Just a clarification of the law already in place. Some wonderful PA attorney decided that, after years of not knowing, the current law already covered what they needed to establish nexus in PA. Great right? And best of all, since its not a new law, there's no voting or public opinion or anything democratic like that. Just some person's opinion and a nice letter to the public to change things.

  17. #17
    Affiliate Manager PetsWarehouse.com's Avatar
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    We love PA, not dropping anyone
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



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  19. #18
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    Thumbs up
    If you are a PA Affiliate and are being devastated by this you need to contact your State Reps IMMEDIATELY !!! Do not sit back and watch your business go down - I will not sit back and watch this happen. The more calls they get about how this is so devastating the better.

    Read this for more info:
    Tips and Tools: PA affiliate marketers | Performance Marketing Association

    Please make those calls NOW !!
    Last edited by Chuck Hamrick; December 22nd, 2011 at 12:58 PM. Reason: Newbies can not add links to their posts!

  20. #19
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    Two more to add to the list
    I received notification that I was terminated by Musician's Friend and Brass & Woodwind yesterday, as I am a PA affiliate.

  21. #20
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    I received those as well.

    I cannot stress enough to everyone who is being hurt by this to get involved. Make a bunch of calls and appointments to meet with your State Legislator, Congressman and even the Governors office. The more they hear our personal stories the better.

    I was on the phone all day yesterday and honestly feel that change will come to take affiliates out of this tax mess - it may not be overnight, but it will happen at some point.

    Yes this is not a new law and we were all blindsided, but there are many people working to get this taken care of, BUT you need to not sit back and wait. Everyone needs to make these calls - ASAP.

    Trust me I have never gotten involved in all this political mess before, but again I will NOT let all my hard work and effort go down without a fight !!

  22. #21
    Member blizz93cw's Avatar
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    Question Terminations for PA Residents
    Has anyone received any more termination emails this week? I haven't gotten any more besides the few that were listed here initially.

    I'm wondering if it is the holidays slowing down the process? or are there more coming?

  23. #22
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    I have not received anymore and was thinking the same thing. They do have until Feb 1st to comply so that has me very nervous. I guess we will have to wait and see and hope for the best. I am just upset beacuse I was dropped by one of my biggest money makers and hope they change their minds - I actually called them personally because I drive so much money to them it is gonna hurt to lose me as well.

    It is all so frustrating !!!

  24. #23
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    Quote Originally Posted by ilashes View Post
    If you are a PA Affiliate and are being devastated by this you need to contact your State Reps IMMEDIATELY !!! Do not sit back and watch your business go down - I will not sit back and watch this happen. The more calls they get about how this is so devastating the better.

    Read this for more info:
    Tips and Tools: PA affiliate marketers | Performance Marketing Association

    Please make those calls NOW !!
    This is the link that Chuck removed - Tips and Tools: PA affiliate marketers | Performance Marketing Association

    Chuck, even tho they might be new to the forum, you should be able to tell the difference between a spam link and a link to something helpful and it should have been left.

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  26. #24
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    It scares me that everything is so quite on the PA issues. While I have not gotten any more terminations in the past few week one things is of great concern.

    One of my merchants who terminated me still has kept the links alive - so this means they are still generating money/sales from me. Now let me know if I am wrong - aren't those sales from my links still considered Affiliate Sales? Even though our contract for the time being is null and void they are still links that were created when I was an affiliate with my ID attached to them.

    That to me is very wrong don't ya think? I also think it is playing with the new law as well. The only one getting hurt here is me. I am so frustrated by this - I did all the hard work for years and they still get to cash in as if nothing changed.

    Is it me?

  27. #25
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    Well, bad news keeps on coming. We were not only kicked out by folks like MacMall, today we got our termination note from NewEgg.com. It's really shameful what PA has done. I am sure Amazon and other companies will follow and kick affiliates under the bus.

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