Where is the progress? What have we learned in two years? In order to examine this we need to step back for a moment. I look back, not to just drag up old history or to listen to apologies and explanations but to take a look at what we have learned. We have made some progress, there are many who are working on the legislation, but we need to look past the legislative battle to see if we, as an industry, have made substantial progress.
If you have been a long time reader of NY Affiliate Voice and Affiliate Advocacy you are most likely aware of how these two websites were born. Neither was created in response to Affiliate tax legislation. NYAffiliateVoice and Affiliate Advocacy were born as a result of the Affiliate Marketing Industry’s reaction to the nexus legislation.
Our reaction to the New York Affiliate tax in 2008 was terrible. Not only were we not prepared, we did not handle the aftermath at all. If you would like to read some of the particulars visit NY Affiliate Voice and start at the very first posts (start with posts on Merchants/OPM Actions and Affiliate’s Actions ) then keep reading to learn how we identified solutions, educated the industry and the impact. In these posts I discuss my thoughts on how we handled the situation back in 2008 and the impact on real people. I think it is important to go back and read through some of what NY Affiliates went through. Read through and decide for yourself if we have made progress. My biggest concerns were not that we were removed from programs because there are always other merchants to choose from. A decision to remove affiliates is a business decision and I respect that; I may not agree but I respect it. My biggest concern was, and still is, the manner in which it is handled.
In May of 2008 Affiliates were removed from programs with very little regard, sometimes as little as six hours notice. Then, there were retroactive deactivations and the merchants who quietly turned off the tracking on links. Sometimes we got an apology, more often not.
It was not the legislation that prompted me to create NY Affiliate Voice. It was not simply the legislation that prompted Kevin Webster and I to meet with a handful of others to identify and implement solutions, we did it because we had to.
In June of 2008 it was not just the nexus legislation, but the reaction of our industry that concerned me.
Ethical Affiliates tossed aside with a few hours notice.
Fast forward to June of 2009. Again as nexus legislation threatened or took effect, we witnessed more last minute terminations or to use a euphemism that some prefer, affiliate removals; the very same merchants took the very same actions in 2009 that they took in 2008. When I expressed the opinion that we did not learn anything I upset some people, many did not like to be reminded of where we went wrong and where we kept going wrong.
In June of 2009 it was not just the nexus legislation, but the reaction of our industry that still concerned me.
Ethical Affiliates tossed aside with a few hours notice.
Fast forward again to February of 2010. We are now witnessing the very same actions. Yesterday, Geno Prussakov of AM Navigator wrote Drs Foster and Smith Terminate Virginia Affiliates. Before I read it a small part of me was optimistic, I expected they were announcing a future action. Imagine my surprise to see that the termination was effective IMMEDIATELY. Ethical affiliates are again cast aside. Again it is not the termination but the handling of the termination. Fortunately for affiliates in the pet product niches there are plenty of merchants to choose from including Petco, PetsWarehouse and many other merchants who demonstrate a higher regard for their affiliates. (Please note I am not endorsing any program, just using them as examples.) There are thousands of merchants in every niche to choose from. If you are kicked out of a program over the Internet sales tax issue or for any other reason move on.
In February of 2010 it is not just the nexus legislation, but the reaction of our industry that still concerns me.
Ethical Affiliates tossed aside with a few hours notice.
If the past is any indication, other than a few affiliates and others in our industry, we will not hear much outcry over these short notice terminations. Merchants do have a right to decide who they will allow into their programs but I still believe that affiliates need more protection. Kicking out ETHICAL affiliates with little or no notice is unacceptable.
We, the Affiliates, need to demand a fairer more balanced agreement. We need some protection but we are only going to get it by demanding.
Look beyond the tax issue. For me, Affiliate Advocacy has never been just about the affiliate tax issue. For me it is all the underlying issues, nexus legislation just makes them more obvious.
On the surface we’ve made some progress but we need to do more.
Time to get off the hamster wheel and really move forward.
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