Long-term success is the goal, and short-sighted reactions are counter to that goal
Cary, NC (PRWEB) October 30, 2011
According to Outsourced Affiliate Marketing program management firm MGECOM, Inc., Merchants do not have to kick out affiliates to avoid State Affiliate Nexus Taxes!
Many US States are scrambling to fill budget gaps by enacting new Online Tax legislation that has caused confusion and headaches for online merchants. Known as the "Amazon Tax" or "Affiliate Nexus Tax", these State taxes unfairly burden merchants that have Affiliate Marketing programs and expose online merchants to significant new risks.
Affiliate Nexus Taxes are confusing and vary from State to State. Many merchants have taken the knee-jerk, aggressive action of kicking out all affiliates from States that have enacted Affiliate Nexus Tax laws, in order to avoid creating nexus and the associated State Affiliate Nexus Tax liability. Matt Enders, MGECOM Founder and CEO observes "In affiliate marketing, any knee-jerk reaction is the wrong approach. Affiliate managers must always remember to balance the wants and needs of the company, with the wants and needs of their affiliate partners." While we understand that most merchants are not affiliate program management experts, these "conservative" actions are extremely damaging to their affiliate programs. “Long-term success is the goal, and short-sighted reactions are counter to that goal” says Enders.
Sadly, many merchants are taking action based on incorrect understandings of the various State Affiliate Nexus Tax laws and the options available to effectively mitigate tax risks.
MGECOM has developed several less-drastic, highly effective options that allow merchant clients to:
-Benefit from their competitors knee-jerk decisions to dump all affiliates that are based in states that have enacted State Affiliate Nexus Tax laws
-Preserve productive, profitable affiliate relationships that have taken considerable time and resources to build
-Grow their affiliate channel profitability
-Comply with the various State Affiliate Nexus Tax laws while boosting their affiliate program sales
-Rebuild programs that already dumped all affiliates that are based in states that have enacted State Affiliate Nexus Tax laws
Who is MGECOM?
MGECOM, Inc., based in Cary, NC, is the leading Agency for Outsourced Affiliate Marketing Management & Affiliate Marketing Program Services.
2011 TopSEO top 10 Affiliate Marketing Agency
ABestWeb 2010 Affiliate Agency of the Year Nominee
Winner of the 2009 Small Business Commerce Association Best of Business Award
Trusted by great Internet Retailer Top 500, Internet Retailer Second 500, and Internet Retailer Hot 100 brands.