Zoosk Ends CJ Program Due to Tax Laws

[BeerNuts]

I just got this email today from the marketing manger for Zoosk. Stating that they are ending their program on CJ for tax reasons. I am posting it in the news section because these laws may effect other programs as well. This is my first email like this but I expect it will not be the last.

I hope this email finds you well. It is my unfortunate responsibility to let you know that Zoosk will be ending it's current affiliate program on March 31, 2011. This means that all CJ campaigns will need to be paused by Thursday, March 31, 2011 at the latest.

The main reason for this decision is due to the tax implications that the pending "Affiliate laws" could place on us. We feel that although your traffic was very high quality, it simply cannot leverage the burden of the state sales-taxes that we will be subject too in the future from our affiliates 'establishing nexus' on our behalf under the new laws. Thus, we have no choice but to shift our marketing focus elsewhere until there is more certainty in the industry about to properly conduct business. Needless to say, I'm not happy about this nor is this something I foresaw but as the saying goes, "it is what it is."

I want to sincerely thank you for all of your effort and cooperation. Without your help, Zoosk would not be what it is today. It has been a pleasure working with you and if our situation changes here, I will certainly be reaching out.

Lastly If you would please reply to this email in acknowledgment, it would be greatly appreciated.

 

[eliquid]

more reason then ever to work with offshore programs if possible.

 

[Mightier]

Between this kinda crap and the taxes on internet sales, I kinda wonder if everyone has forgotten that states aren't really supposed to impose duties or tariffs on goods from other states per the Constitution. I know local governments are eager to find new sources of revenue rather than cut spending, but this kinda shit is getting ridiculous.

 

[imbo55]

Yeah states are broke. they are turning to whatever tax revenue they think they can get.

But lets just see how well this has worked for any state that has passed a Amazon Nexus or similar Bill.

A) Amazon ended their Affiliate program - Total Net Revenue for state $0.00
B) Amazon still leader in online sales ! Result to "main street business" and other big box retailers that were trying to lobby these bills. - Failed
C) Large Affiliate marketers - Move companies out of state, either lay off workers or relocate to another state. - Net result Further loss of revenue to states, workers unemployed and taxable revenue they otherwise would of got . FAILURE


So in short all these nexus or similar bills have ended up in a dismal failure. Mainly because your State appointed legislators are trying to follow special interest groups. And don't have a clue about Online Marketing. And the fact that it's just as easy to do it in their state where they at least get some taxable revenue, than another state.

And when unemployment in many states is 10% and the government and states are fucked. This is the wrong time to be passing these types of bills!!

 

[javanx3d]

I agree and think the states in trouble get caught up in the "Shiny Object" syndrome...ohhh, another story of an Internet marketer making millions, we have to be able to fix our bad decisions from the past decade by taxing these guys!!! With no one that knows how things work really advising our decision makers...

I think that we can fund ObamaCare, make up state surpluses, and make folks healthier by adding a tax equivalent to the tax on cigarettes to all fast food. Just think, instead of 4 bucks for a number 2 at McDonalds, make it 8! Still less than a ten...course, we don't really use the extra cigarette tax for health care...hmmmm...

Everything else fun already has the hell taxed out of it, too many things can go wrong with trying to regulate or tax an industry that was not designed to be taxed....

I keep waiting for the next big online tax...email! Fun times. Glad I'm not in Greece though.

 

[namertero]

I think everybody doing that kinda things must take precautions !!