A few years ago Google first “slapped” thin affiliate sites with low quality scores, and now, webmasters are complaining again because their “high quality” review sites just got “slapped”.
What do I mean by “slapped”? A Quality Score of 10 being reduced to 1. That’s a slap right in the wallet, because what use to cost $0.50 a click, not is $20.00.
Ouch.
First things first, many “experts” are claiming that finally the time has come when Google is going to “stamp out” affiliate marketing because it isn’t a real business. Hold on now … not a real business? Really? Then why, might I ask, does Google OWN an affiliate network?!?!
They don’t hate affiliates, they just hate the lazy ones.
Fact: This issue is with AdWords not the Organic listings.
Testing Results: Of the dozens of affiliate review sites I have, not one of them was slapped in AdWords. Not one.
I also had the opportunity to review sites that did get slapped, and you know what? All of them were awful. They weren’t high quality, they didn’t add value, and they looked like they were built with a content scrapper tool. If you are serious about affiliate market, then get serious about it.
Every program I do my #1 goal is to have a better site than the merchant. Why? Because I know that if my site looks better and performs better, they will want to buy it.
Note: This issue has nothing to do with “cloaked links” or “redirects” according to my testing.
This morning I’m going to run through the most popular blog posts I have done over the last six months or so. Maybe you’ve seen these posts before, maybe you haven’t. At any rate, review them again as you should find at least one thing which will greatly help your businesss.
Effective Outsourcing Tips – Learn how to outsource effectively and not get taken from overseas contractors.
LinkConnector Affiliate / CPA Network – If you need a network that you can count on that actually cares about you, LinkConnector may be what you have been searching for.
Don’t Buy the Arbitrage Conspiracy – While this course is no longer available, it does outline things to look for so you don’t end up getting ripped off.
Leslie Rohde Discusses the LSI Model – LSI can be a heated subject. Leslie Rohde, who pioneered the term “Link Reputation” shows you the LSI model in a way you may not have seen before.
I am holding my first ever closed door event, and it is going to be the night before StomperNet Live in Atlanta August 6th from 7pm-9pm at the Hotel W. So, if you are going to be at StomperNet Live next month (Aug. 7-9), you can reserve your seat.
Seats are just $50.00 which will cover the cost of the room. Like all the other content I put out, this will be well worth your while.
The following details the current “Amazon Affiliate Tax Issue” and what you can do as an affiliate to keep your business in business despite attempts from lawmakers to shut you down “inadvertently”.
Note: It is HIGHLY recommended that you get an attorney to set this up for you. While this set-up worked for me, it may not be the best solution for you. However, with the ideas presented here, it may give your attorney what they need in order to create the correct solution for you.
Update: A few members and one of my staff members informed me of an attorney bashing this solution. I was tempted to remove this video from public view and only have it available to my members, but as one member said, “Jerry, there is a reason for all of those lawyer jokes.” Good point. The video will remain online.
The following is my response:
1. First of all, his “solution” is that you physically move to another state. In this real estate market, do you think you can sell your house? And while you are waiting your income is either slashed in half or gone altogether. Your lifestyle will greatly suffer. And what happens when the state you move to passes this law, are you going to move again? Vegas is a great place to visit, but you couldn’t pay me to live there. That is not a solution.
2. Collecting these taxes is unconstitutional until the federal law is overturned. States are claiming that affiliates represent a “physical presence” in the state, and thereby, the merchant has to collect sales taxes. It is absurd to believe that an affiliate represents a “physical presence”. The courts will probably argue about this for years.
3. What would you rather have, paying a slightly higher tax rate on 100% of your income or the same tax rate you pay right now on 50% or 0% of your income? Yeah, I thought so. The bottom line here is getting you BACK in business quickly, not twiddling your thumbs and paying $20-30k to move to a state you don’t want to live in away from family and friends.
4. And as for traveling for meetings of shareholders and such, I have had a foreign company in another state for years and I’ve never had to personally show up to a shareholders meeting. They are all done through the mail and over the phone. Besides, if I did, I’m in Vegas twice a year. What affiliate DOESN’T want to go to Vegas at least once a year?
5. He then makes a pitch that you need a good internet attorney. Oh, he just happens to be one. Big surprise.
The solution I present isn’t my opinion, it is the solution my attorney and tax accountant came up with. I should also add my merchants, who terminated my accounts, were very helpful in providing advice to ensure their needs were met. I was in full communication with them through this process (you should too). As I state in the video, discuss this solution with your attorney. They know your business the best. But chances are, if they set you up correctly the first time, you already have a corporation setup in Nevada or Delaware for tax purposes. All you are doing is setting up a physical presence there remotely, and you are setting up a corporation in your home state to protect you from future IRS audits which are coming soon.
My solution has passed all the audits and I am confident that this is not unethical that I am posting this publicly. After all, all of my accounts are fully restored, which is exactly what you want.
If this comes off as a complete rant, so be it. I’m upset. I’m angry. Mostly, just when you thought elected public officials couldn’t get any worse, they do this. And I bet you if you look at their resumes, they were responsible for the construction of this child playground slide.
North Carolina Lawmakers Creation
What am I upset about? Lawmakers in North Carolina are following the lead of those in New York and Rhode Island by instituting an affiliate tax or otherwise known as the “Amazon Tax”. What is it? Basically, if you are an affiliate, the merchant has to collect sales tax on the sale and submit it to the state where you are a resident. Mind you, not where the purchaser of the product lives, but you, as the affiliate. If that sounds stupid and idiotic, you’d be right.
Now, if you were the merchant, what would you do? Would you collect the sales taxes and cause extra burdens to be on your company? I wouldn’t either. The easier solution? Terminate the relationship with every affiliate in those states. And now, it is happening in my home state of North Carolina. I have already had seven affiliate relationships terminated which account for over 40% of our revenues. That’s significant – especially in this economy.
I know I will find a solution, even if it means moving my company out of this state. But while finding a solution for my business is my chief concern, I am also concerned that states tend to be copycats and this can soon spread to all states. If you’re an affiliate, this can literally crush your business overnight.
The bill goes before the governor on July 15th. The best way to stop this spread of “idiot politics” is to stop it from being passed in North Carolina. If it fails, other states may drop interest in the tax.
What can you do?
Two things:
1) Sign this online petition. At the time of this writing there were 832 signers. We need a lot more to get their attention.
2) Even if you are NOT a resident of North Carolina, you can fill out this form to be delivered to the governor’s office. On the drop down option for the Subject, choose Taxes & Revenue. Be direct, to the point, but most of all professional.
Forward this post to as many people as you can. I didn’t take this to seriously last month when it was discussed, but now I face reality by having my income severely reduced. Take a few minutes of your day to support this to avoid going through what I am right now.
Scott Hendison, whom I have known and respected for years, wrote a post regarding Ten Things You Must Know About Your Domain Name. The main issue that most people have is that they have a lot of domains and they expire and get picked up by one of these “domain acquisition” companies who try and resell you the domains for a few hundred, or sometimes, a few thousand dollars.
I highly recommend going through Scott’s post to familiarize yourself with the process so you safe yourself time and aggravation.
The main reason I started the SEO Revolution was out of frustration. Frustration at all of the lies and misconceptions that are posted in forums, given as advice in teleconferences, and even taught in live workshops. "So why didn't all of this work?" " Why wasn't my site successful?" " Why am I still stuck in a rut?" 