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Think of it as a signaling game: what happens when all the US states have similar laws. Will Amazon just give up on affiliates?

gscott 15y ago
With the widespread adoption of the Google Content network for advertising I am wondering if affiliate links are needed because they can just show up in the Google ad and the advertiser gets paid for clicks. The previous affiliate can still make a page about a product but let Google figure out the links to show.
nostromo 15y ago
Remember, there are five states that do not charge sales tax, so they have no incentive to fight Amazon. There are another five states where Amazon already collects sales tax. So, that's 10 states that have no reason to pass similar laws. And of course, affiliates that make a sizable amount of money will probably not move, but will instead simply incorporate in one of those states (one of which happens to be Delaware).
- jonkelly 15y ago
  Exactly. There are plenty of choices of jurisdiction for the bigger affiliates that matter to Amazon. This is really just a "nuke the mom and pop blogger" effect.
- _delirium 15y ago
  Can you really just change the place of incorporation? I thought to avoid a determination (under these laws) that Amazon itself has a physical presence in a state via its affiliates, Amazon was refusing to accept affiliates who had any physical presence in the states in question. As I read it, if your corporation is incorporated in Delaware but has its offices in Connecticut, you're no longer eligible for the affiliate program. Enforcement might be another matter; seems like there's a good chance that you won't get flagged if you give Amazon a Delaware mailing address, even if you're (as a company or individual) resident elsewhere. But you don't even need to incorporate to do that.
chopsueyar 15y ago
Think of what happens when all US states legalize medicinal marijuana? It is still illegal at the federal level. How much money can a state afford to spend on federal litigation against a team of Amazon's lawyers?

gscott 15y ago

With the widespread adoption of the Google Content network for advertising I am wondering if affiliate links are needed because they can just show up in the Google ad and the advertiser gets paid for clicks. The previous affiliate can still make a page about a product but let Google figure out the links to show.

nostromo 15y ago

Remember, there are five states that do not charge sales tax, so they have no incentive to fight Amazon. There are another five states where Amazon already collects sales tax. So, that's 10 states that have no reason to pass similar laws. And of course, affiliates that make a sizable amount of money will probably not move, but will instead simply incorporate in one of those states (one of which happens to be Delaware).

jonkelly 15y ago
Exactly. There are plenty of choices of jurisdiction for the bigger affiliates that matter to Amazon. This is really just a "nuke the mom and pop blogger" effect.
_delirium 15y ago
Can you really just change the place of incorporation? I thought to avoid a determination (under these laws) that Amazon itself has a physical presence in a state via its affiliates, Amazon was refusing to accept affiliates who had any physical presence in the states in question. As I read it, if your corporation is incorporated in Delaware but has its offices in Connecticut, you're no longer eligible for the affiliate program. Enforcement might be another matter; seems like there's a good chance that you won't get flagged if you give Amazon a Delaware mailing address, even if you're (as a company or individual) resident elsewhere. But you don't even need to incorporate to do that.

chopsueyar 15y ago

Think of what happens when all US states legalize medicinal marijuana? It is still illegal at the federal level. How much money can a state afford to spend on federal litigation against a team of Amazon's lawyers?