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Earning Affiliate Commissions in California
Amazon withdraws affiliate contracts with California Web publishers.
If you're a California Amazon Associate, you have options! Here are a few steps to take so
you can return to Amazon if you're a former California Affiliate.
Recently, Amazon closed its doors to all California affiliates. That means 10,000 Amazon
Associates in California who represent 25,000 Web sites have been terminated. Why?
Amazon is doing this to avoid double paying taxes and here's how...
Amazon's California sellers have been paying taxes to the State every time they have been
shipping to clients in California. Amazon has not been paying taxes as they have been
observing Washington State's taxation laws.
With signature by California Governor Brown on "ABX1 28" California is currently imposing a
tax liability on out-of-state retailers, like Washington State based Amazon.com and Overstock.
com who receive $10,000 per year or more in sales from California shoppers who are referred
by California affiliates; and who have a total gross California sales of $500,000 or more
annually. So Amazon just skirted around the tax issue and got out of the State. They fired all
Web publisher affiliates who reside in California.
As a result, California Web publishers no longer receive commission checks from Amazon. As
it stands today, residents of California, Colorado, Connecticut, Illinois, North Carolina Rhode
Island aren't eligible to participate in the Amazon Associates program either. Meanwhile, New
York State affiliates keep their contracts as Amazon keeps a foothold of legal battles in that
State. It's interesting to note Amazon's strategy in retaining New York.
Currently, Amazon is collecting 500,000 signatures for a California online sales tax
referendum. Amazon Publishers in California are waiting eagerly for the outcome. Some
interesting facts to consider:
- Amazon Associates in California paid $151 million in state income taxes in 2010. That's
$151 million income lost for California as a result of Brown's signature on ABX1 28!
- The LA Times reports that Amazon Internet sales in California account for "about $317
million a year in sales taxes that previously went uncollected."
- Only about 1.5% of Amazon's sales in New York came through affiliates in New York
before the Amazon tax passed in that State!
- Here's how California Amazon affiliates can get their account back:
Only time will tell what California will do with regards to this issue. But it's interesting to note
that Overstock.com has already cut hundreds of affiliates in California to avoid paying taxes.
Here's a copy of the letter Amazon sent its California Publishers June 29, 2011:
“For well over a decade, the Amazon Associates Program has worked with thousands of
California residents. Unfortunately, a potential new law that may be signed by Governor
Brown compels us to terminate this program for California-based participants. It specifically
imposes the collection of taxes from consumers on sales by online retailers – including but not
limited to those referred by California-based marketing affiliates like you – even if those
retailers have no physical presence in the state.
We oppose this bill because it is unconstitutional and counterproductive. It is supported by
big-box retailers, most of which are based outside California, that seek to harm the affiliate
advertising programs of their competitors. Similar legislation in other states has led to job
and income losses, and little, if any, new tax revenue. We deeply regret that we must take
As a result, we will terminate contracts with all California residents that are participants in the
Amazon Associates Program as of the date (if any) that the California law becomes effective.
We will send a follow-up notice to you confirming the termination date if the California law is
enacted. In the event that the California law does not become effective before September 30,
2011, we withdraw this notice. As of the termination date, California residents will no longer
receive advertising fees for sales referred to Amazon.com , Endless.com , MYHABIT.COM or
SmallParts.com . Please be assured that all qualifying advertising fees earned on or before
the termination date will be processed and paid in full in accordance with the regular payment
You are receiving this email because our records indicate that you are a resident of California.
If you are not currently a resident of California, or if you are relocating to another state in the
near future, you can manage the details of your Associates account here . And if you relocate
to another state in the near future please contact us for reinstatement into the Amazon
To avoid confusion, we would like to clarify that this development will only impact our ability to
offer the Associates Program to California residents and will not affect their ability to
purchase from Amazon.com , Endless.com , MYHABIT.COM or SmallParts.com .
We have enjoyed working with you and other California-based participants in the Amazon
Associates Program and, if this situation is rectified, would very much welcome the
opportunity to re-open our Associates Program to California residents. We are also working
on alternative ways to help California residents monetize their websites and we will be sure
to contact you when these become available.
Regards, The Amazon Associates Team"
CashbackateBay has been earning affiliate commissions from Amazon by running ads directing
traffic to Amazon, such as this:
(C) Copyright 2007-2014 by M.C. Nygard. All rights reserved.
Linking to this site is permitted. HOWEVER, no part of this content may be reproduced, or stored in any retrieval system, or
transmitted in any other form or by any means including but not limited to electronic, mechanical, photocopy, recording or
otherwise, without the written consent of the author. The author makes no warranties express or implied.
Popular links: Cash Back at eBay, profit on eBay, eBay Spy Tool, eBay seller guide, eBay buyer guide, eBay tools, free eBay guide
Consider selling on Amazon! cashbackateBay.com is a participant in the Amazon Services LLC Associates Program, an affiliate
advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com,
amazonsupply.com, or myhabit.com.
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