72 Kilowatts Internet Marketing

When are Talking Points Just Talking Points?

In trying to organize the NY Affiliate Meeting on July 28th, I’ve ended up speaking quite a bit to Mellie from ABW.  She is co-chair of the event, and a valuable friend and co-planner to have.

She raises an interesting question here in regards to the Performance Marketing Alliance, and how it has been some degree leveraged during the initial debates on the direction of that group, it’s validity not withstanding.

First, I would wonder if it is too late for affiliates to do anything about the tax.  We plan on having an attorney at the July 28th meeting, if just to answer questions and shed some light on what we NY affiliates might be able to do as far as incorporating elsewhere, etc.

Second, as is the case with all political things, it’s an excellent way for the PMA to start some “patriotism” and chest thumping.  It’s a very emotional issue, with difficult decisions being made (STILL!!!) by merchants, scrambling being done by NY affiliates, and most networks quietly sitting in the background watching it all happen.

So it makes great fodder for speeches and what have you.

But is it just a talking point?

It’s likely that other states (though not guaranteed) will wait for the fall out of the Amazon and Overstock Lawsuits before committing to passing similar legislation.  At the same time, you can bet that pens are flying in several state capitals, perhaps with even broader strokes, preparing to pass their own presumptive nexus ruling based on the SPECIFIC outcome of the New York State lawsuits.

So is there time?  Or do moves in other states need to be made now?  And is the PMA serious about addressing this issue..  Only time will tell as the FAB etc fleshes out.

Tags: organizing affiliate marketing, Performance Marketing Alliance

An Open Letter to the Affiliate Marketing Industry Leaders

Generally speaking, I would post something like this at Abestweb, but I feel in this case, because of the nature of my comments here, that wouldn’t be appropriate.  And again, in posting it here instead, it will be seen by MANY less people, and might give some people the impression that I don’t want it seen there.  That isn’t true either.

As one man, with a modest background in affiliate marketing, and without the resources, information, and full range of knowledge that many in this industry are privy to, I don’t pretend to have all the answers, nor do I even know all the right questions.  But here goes.

The time has definitely come for those that have positions of authority in this industry to check their egos at the door, and either back the PMA, or start an organization that they feel will make sense.   We can’t afford all the chest thumping that is going on presently.

With merchants setting commission levels to zero whenever they feel like it, OPMs using predatory practices to recruit and bolster their coffers and standing, affiliates casually and repetitively ignoring network and merchant terms and conditions, and networks just sitting by watching it happen, this industry is in trouble.

Yes, it’s been going on for years.

Now, however, it has been brought to the forefront by people speaking at conferences, spewing out truths, half truths, and negative spins.  We need look no further than the last Affiliate Summit, or the most recent Internet Retailer conference.

Our industry is deeply fractured, both ideologically and in organization.  Due to how some people feel about “community A”, they won’t post there.  Due to how the others feel about “community B”, they won’t endeavor to post there either.  And that list goes all the way to “community ZZ” I’m sure.

In part, that’s the nature of the internet, and has little to do with our industry in particular.  At the same time, we’ve all failed to appropriately communicate to the outside world what affiliate marketing should actually be about.  Buried in all the rants, the slanders, and the self promoting clap trap that gets penned on the net each day is a strong message.  A good core.

But it’s so far buried beneath our own self importance that no one will ever see it except ourselves.

So my request to all of you that have sway in this industry:

Lower your ego and your guard.  Lock yourselves in a virtual room or a real one.  And get this thing done.

Whether each and every affiliate, from the stay at home Mom to the Pepperjam’s of this world, realize it or not, we are all counting on you.  The NY tax was just ANOTHER in a myriad of reasons to show that this industry needs a collective voice, and a collective dialog.

We will never all be moving in the same direction, with the same set of ethics, values, and goals.  At the same time, we need to task our leaders with developing a framework for the outside world to see, and we need to do it fairly, openly, and honestly.

Now get to it.

Tags: organizing affiliate marketing, Performance Marketing Alliance

Is the PMA Right for you?

This was an interesting bit to return to after a few weeks of fishing.

It’s well known amongst the folks I talk at on a daily basis that I believe the time has come to form at the very least a lobby group for affiliate marketing. The scope of this group is somewhat vague, even in my head, as I consider the benefits and inevitable drawbacks of forming an industry association.

Groundwork is being laid, however, at the Performance Marketing Assocition blog.

It’s a daunting task they are undertaking, and some of the things I’d like to see addressed are:

1.) Forming a vocal lobby that attempts to represent all levels of affiliates and merchants.

2.) Establishing a set of ground rules for good behavior on the part of merchants and affiliates, without overstepping what would be the role of a good association.

3.) Endeavoring to “recommend”, and never to “mandate” when it comes to courses of action.

4.) Showing real value to affiliates of all sizes.

5.) NOT becoming a union. The industry is too broad for that.

I look forward to reading more on this effort. There have been concerns raised already, in particular at Abestweb, and elsewhere. I think it’s important, however, that we keep a level head on this, and work together in many respects.

The industry has grown to large to go unnoticed, as evidenced by the Amazon tax issue in New York.

If there truly is going to be an association, it’s important that everyone be included, even if at the end of the day they don’t necessarily feel that they were. I’d rather see the isolation be of their own choosing, and not by inaction on the part of the committee’s forming members.

Tags: organizing affiliate marketing

Unhappy Friday Reading, and a Message to New York State

Linda at 5 Star was kind enough to point this post out to me on some thoughts from a legal brain on the current state of affairs for New York (and down the road, other) affiliate marketers.

First, the message to New York from John Dozier:

So, the final message is for the State of New York: If the momentum continues, New York affiliate marketers will be shut down entirely. You should have anticipated this consequence. No, you will not increase your tax base significantly. But you have added to your unemployment rates. We need to work together to save the many New York businesses going under.

I would encourage everyone to read Dozier’s post in it’s entirety, about 10 times.  I think it speaks a lot to what we can expect in the coming weeks, months, and years.  Industries our size do not go unnoticed forever.  They are not beyond the auspices of local, state and federal agencies, be they cruising for revenue, or trying to uphold the law of the land.

Further reading into the TSB from New York should also tell affiliates that think they can lie low that their marketing practices are NOT in fact a secret, and no-one else’s business.  In fact, New York has taken a deep interest in understanding EXACTLY how you promote your website.

Friends.  The time has come.  We need an organization.  Quickly.

To hide under your bed sheets and hope “they” will all leave you alone is now ineffective.

I’m not saying it has to be the Hall of Justice for affiliate marketing.  It doesn’t need to micro examine the business practices of every affiliate.  What it does need to do is lobby, educate, inform, and publicize.

And it needs to happen 2 months ago.

If the industry needs someone to step up and work on getting this thing going full time, it’s unfortunately looking like I’ll have lots of time on my hands.  While my affiliate work won’t be done, as I have word from a MINUTE HANDFUL of merchants that they aren’t dumping NY affiliates, I think I can also spend time doing more important things.

Just putting that out there.  Certainly not saying I am the most well educated affiliate marketer this side of the Missisip, I’m just saying I’m willing.

Tags: new york state internet and pay for performance tax, organizing affiliate marketing

Maybe Not So Simple?

Linda at 5 Star is reporting that her call with a respected internet attorney wasn’t so cut and dry today.

We knew this wasn’t going to be easy.  I can’t help but wonder:  Did the industry react in time to make sensible choices in the coming days?  If we had some form of organization, no matter how loose, could we have prevented this mayhem by acting back in April?

Hyperbole at this point, since it’s water under the bridge.  A better question is how to prevent the next fiasco.

Tags: new york state internet and pay for performance tax, organizing affiliate marketing