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  1. #1
    ABW Ambassador CCBerries's Avatar
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    In a bankruptcy wouldn't commission be protected in Nexus states?
    Had a thought (feel free to move it),
    A closure often involves a bankruptcy, especially when it's a quick, no notice one.
    In Nexus states they consider you a representative, so since payroll comes first before all creditors in a bankruptcy wouldn't commission be protected in Nexus states?

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
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    Interesting question, going to move that to the Tax forum.

  3. #3
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Commissions are non-employee (1099) compensation paid to independent contractors. Nexus laws do not and cannot change a non-employee relationship into an employer-employee relationship. "Representative" is not the same as "employee". Could you as an affiliate manger/merchant tell your affiliates what hours to work, how to design the sites where your ads are shown, or do you authorize and reimburse their "Employment expenses" such as hosting costs, isp fees, ppc costs, etc.? That control is the essence of the employer-employee relationship.

    Also, even if nexus laws did try to create such a relationship, bankruptcy is governed by federal law and not state law.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  4. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    Could you as an affiliate manger/merchant tell your affiliates what hours to work, how to design the sites where your ads are shown
    According to current conversations on ABW, yes!

    Thanks for the clarification, always grateful to have a lawyer aboard.

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  6. #5
    ...and a Pirate's heart. Convergence's Avatar
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    I just wonder how much networks have in assets when they go under?

    There was a UK network that went under a few years ago (Deal Group Media aka DGM) and they really stuck it to the cashback sites Quidco and TopCashBack...
    Salty kisses, Sandy toes, and a Pirate's heart...

  7. #6
    Tax Paying Member
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    Quote Originally Posted by Convergence View Post
    I just wonder how much networks have in assets when they go under?
    My guess is......Not much.....Its not like they have an inventory of unsold merchandise.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

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  9. #7
    OPM and Moderator Chuck Hamrick's Avatar
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    With Google perhaps a $1M in unpaid commissions from all of the small accounts they cut off when AdSense was required for payment. For a CPA network like AffiliateWise closing I'll bet the money was spent long before they declared bankruptcy. I don't know AffiliateWise personally just talking about CPA networks in general. At Affiliate Summit you see any that are new and gone the next year. My favorite are the four guys with a couch in their booth. No signage, just a couch and a bunch of beers.

  10. #8
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
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    My favorites at Summit are the empty booths - they had the money to buy the space, but were out of business before the conference. Their only presence is the sign with their booth name - kind of like a tombstone!
    Jeannine Crooks - Always happy to share what I know! - Voted Best Network Rep 2013 & 2014
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