Why Are Colorado Affiliates at Risk

by Melanie on August 6, 2010

I received a few emails and phone calls regarding the removal of Colorado Affiliates by a few merchants, most recently Sharper Image. Although I cannot speak for their own particular reasons I can speak about the general decision to remove Colorado Affiliates from a program.

Although the recent legislation in Colorado does not target Affiliates some merchants are still deciding to remove Colorado Affiliates for a couple of reasons.  First of course, there is the lack of understanding of exactly what the law means.  I have seen this several times in New York and other states with modern nexus laws. Some merchants simply take the easier path of following an other’s example rather than seeking their own qualified counsel. Not saying any merchant mentioned by name in this post has done so just giving a possible reason.

Some merchants will remove Affiliates based on the advice of their accountant or lawyer.  In these cases, the lawyer or accountant feels it lessons the risk of audit, or in the case of Colorado, lessens enforceability. Whether this is valid or not remains to be seen; it is just what merchants have told me.

Other merchants have stated they are making a political statement to stand up against what they consider unconstitutional. Such a stance may also add to the impact of their testimony in any legal challenges.

Other merchants also feel that by taking action and removing Affiliates in states that enact laws they will deter other states from enacting new laws.

Regardless of the reason for termination, Affiliates do have a choice. Seek out merchants that will continue to work with you. Golden merchants are out there. Develop new relationships, diversify and always have a backup.

Adaptation is the key.

Also see – Why Amazon Removed Colorado Affiliates

(Still no Dsl so thanks to McDonalds for Internet access :) )

{ 1 comment… read it below or add one }

Chris December 29, 2010 at 11:44 am

I was a customer first with Amazon and then later an affiliate. But when I moved to Colorado from Oregon and found out my affiliate account was shut down because of my new location I boycotted Amazon.

Maybe accountants and lawyers should consider the fact that legitimate affiliates will purchase products from the merchant and that will cause the loss of sales.

Plus, the Internet is a social media – I am currently writing about my displeasure with Amazon based on facts. How many people will read this post and get on the anti-Amazon or anti-Sharper Image bandwagon? This will lose even more sales.. .hmmm….which is the bigger risk?

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