Want to avoid sales tax on Affiliate programs? Work with non-taxable offers!
What’s the number one concern among Affiliate Marketers? The news sites and forums have been buzzing with the issue of State’s taxing affiliate and online purchases for over a year now. Of all the issues Affiliate Marketers deal with, this is a huge hot-button because a change in a state’s tax legislation can equal the death of an affiliate’s program and livelihood. In 2008 when the state of New York began working on a law taxing online purchases one of the biggest names in the Affiliate Marketing industry, Amazon, made the decision to drop affiliates who live in New York. Now with Colorado passing their tax legislation to join Rhode Island and North Carolina there are more and more Affiliates who are affected by this change in state tax legislation
As a professional Affiliate Marketer you are able to choose where you live and work, to a degree. Many Affiliate Marketers can’t pick up and leave even if their way of earning a living leaves the state because they have property, family or other reasons for staying put. In that case, finding a program that will not have taxable consequences has become a top priority for the Affiliate Marketer. Those Amazon affiliates in New York have been very vocal about the threat of States taxing Affiliate transactions.
There are several things the smart Affiliate can do to protect themselves. First, be aware of the legislation your State of residence is considering. Second, consider programs that will not require any taxes for the transaction you are paid on. One program that is non-taxable in all 50 States at this time is Life Insurance. When a consumer purchases life insurance they pay no taxes at all on their premiums. For savvy Affiliate that means there are no taxes collected on or off line and your Advertiser will not have to pay any sales tax on your earnings from promoting life insurance.
While Affiliate programs that have no sales tax consequences exist, why run the risk of being removed from you source of Affiliate income by promoting offers that may cut and run from your state once taxing online purchases become the law? If your livelihood is important to you consider both tactics, fight (proposed State tax legislation) and switch (to non-taxable programs).
Contacts
Debra Rabin
949-600-7912
About LinkValu (www.linkvalu.com)— LinkValu is the exclusive marketing arm of Spectrum Direct Insurance Services, Inc. and a leading source of CPA affiliate marketing programs for life insurance since 2002. Our wholly owned and operated websites generate more e-commerce life insurance sales than any other source in the United States. They feature strategic partnerships with top-rated insurers such as Transamerica, Prudential, ING, HSBC, RBC Liberty Life and others, and reflect a combined experience of over 100 years in the life insurance space. Savvy affiliates join LinkValu because they know to go to the source for outstanding payouts and industry-leading conversion rates.
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