Practical Ecommerce

Affiliate Marketing Exec Offers Alternative to Nexus Sales Tax Laws

The migration to online retailing is putting U.S. states in a bind. Their reliance on sales tax from local brick and mortar retailers means that as local sales lessen, so does the sales tax revenue from those transactions. Some of these states are now attempting to expand who is liable for sales taxes, and some states now say this includes companies with local Internet affiliates. Our guest today, Oliver Roup, is the CEO of VigLink.com, an affiliate marketing company. He says targeting affiliates is wrong. He suggests another solution, and he’s here today to discuss it with Practical eCommerce’s Kerry Murdock.

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  1. DavidB June 29, 2011 Reply

    Kerry,

    Your discussion with Oliver Roup was spot on. This is a Federal issue that the Congress needs to address.

    Similar to VigLink, I’m creating software that allows website owners to easily participate in performance marketing. With state lawmakers targeting Amazon and other large Internet retailers, I face a very rocky road launching my new software business. This is very unfortunate, as the performance marketing industry has grown through the recession while businesses try to squeeze more sales out of their marketing dollars.

    I sent California Governor Jerry Brown a letter urging him to please repeal the new "Amazon tax" law before it takes effect on 30 September, 2011. The law will have serious unintended consequences, including driving residents and business out of state. I’m already making plans to move because the majority of my income will be lost if I remain.

    I can’t help but think with every looser their is a winner. The winners will be the states that work and compromise to bring jobs into their state, not drive them away. California seems destine for more great losses.

    Cheers!

  2. Bret Williams July 6, 2011 Reply

    Thanks for letting know about this service. Since Brown signed the budget into law, how has that affected VigLink’s program? There’s nothing on their website or Twitter feed to indicate they are even aware of this new law, which, of course they are. As a California-based company, how has the new law directly impacted what they provide to publishers? We’re considering testing VigLink, so naturally we’re interested in knowing if the new law has reduced or curtailed their offering.