This just popped up on my feedreader. In an unprecedented move, Drs Foster and Smith is dropping their affiliate program and all affiliates in all states due to "the moving target of the ever-growing patchwork quilt of state legislatures that are considering nexus legislation relative to affiliate marketing and sales tax."
This is very discouraging and I hope other affiliate programs do not follow suit!
If you are an affiliate marketer who is active in fighting against these unfair sales tax (advertising tax) bills, please use the following letter from Drs Foster and Smith to help show legislators that these laws will NOT increase state coffers, but will result in lower income for small Internet businesses (affiliates).
This is very discouraging and I hope other affiliate programs do not follow suit!
If you are an affiliate marketer who is active in fighting against these unfair sales tax (advertising tax) bills, please use the following letter from Drs Foster and Smith to help show legislators that these laws will NOT increase state coffers, but will result in lower income for small Internet businesses (affiliates).
<strong><a href="http://www.sagefieldpost.com/2010/02/drs-foster-and-smith-drops-internet.html">Drs Foster and Smith Drops Internet Affiliate Marketing Due to States Targeting Nexus Legislation Relative to Online Sales Tax</a></strong>
<strong>It is with great regret that we have to inform you that we are shutting down affiliate marketing at Drs. Foster and Smith effective immediately today, February 22, 2010...
The single reason for the decision at this time is the moving target of the ever-growing patchwork quilt of state legislatures that are considering nexus legislation relative to affiliate marketing and sales tax. It has become increasingly difficult to determine who is considering such laws, where they are in the process and what the ramifications are in each state. What affiliates may not be aware of is that such nexus situations do not only relate to sales tax collection, but potentially state income tax for a corporation as well.
We wish there was clarity on this issue from state to state and nationally, but there isn't. So until this matter is cleared up nationally, we are shutting down all affiliate marketing.</strong>