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Who else is affected by the Nexus Syndrome?

May 15th, 2008 Posted in affiliate marketing

Andy Beard quoted the NYTimes as saying that Overstock went beyond terminating the traditional affiliates in yesterday’s action. Instead, they ended nearly all (if not all) pay for perfromance relationships with firms listed with New York State addresses, including:

Jellyfish A comparison shopping engine. This is still traditional affiliate marketing in my opinion, but comparison shopping, to me, doesn’t represent a “sales force” in the classic sense, so it’s of note (considering that it had been determined by the courts previously that a Nexus only occured when a “sales force without which a company would not be able to market to a state’s residents)

NextJump Who apparently leverages affiliate relationships to provide employee benefits. Their homepage clearly indicates that they are headquartered in New York, and are in “stealth mode” until their IPO. Good luck with THAT ipo considering these circumstances.

And it broadens from there:

Remember those Entertainment coupon books you all are asked to buy around the office or door to door? Overstock withdrew their relationship with them as well, citing that it was a pay for performance relationship, and thereby under the auspices of the Nexus Syndrome.

So, multi level marketers? That means you too. So you can stop recruiting me on Facebook.



 
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