Hurting Internet Affiliate Marketing in California With AB178

Affiliate Marketing, also called Performance Marketing, has been a great income driver for vendors large and small. It allows them to sell their products across the USA and around the world, no matter where they are based.

The “Affiliates” are actually separate businesses that display advertisements, using a special code from the vendor. The affiliate sends code that allows the reader’s browser to call and display the advertisement. The reader may then click the advertisement. The reader may be interested in seeing more information or they may wish to buy a product. The affiliate has no control over the reader because the action is taken by the reader clicking the ad in their browser. In most cases, the affiliate doesn’t even know the reader has clicked the ad and visited the vendor’s website. It is up to the vendor to convert the reader to a buyer.

Last year, New York enacted legislation that shut down tens of thousands of affiliate marketers based in that state. Their aim was to raise state income, but it damaged many small businesses instead. Now California is considering similar legislation in AB178.

In an effort to raise $55million in revenue, California legislators risk destroying more than 40,000 small businesses in California, that rely on an advertising relationship with out of state stores.

The California businesses that would be affected understand that the State needs to raise money, but they know this legislation will not have the desired effect. What will happen is that the businesses will lose money, those who rely heavily on the affected payments will likely shed staff, reduce or stop their own advertising spending, cut back on office space, cut back on other business expenses, thereby damaging other small businesses and they all will pay less state and federal taxes.

The projected gain could easily change into a loss for the state. Businesses in other states could gain much of what is lost to California.

In other words, the legislation unbalances the playing field for California businesses and sends business to other states, which is definitely not the intent of the legislators.

Any California resident who is concerned about this should urgently contact their state legislator to register their concern.

Alan Gray is the Publisher and Editor-in-Chief of NewsBlaze Daily News and other online newspapers. He prefers to edit, rather than write, but sometimes an issue rears it’s head and makes him start hammering away on the keyboard.

Content Expertise

Alan has been on the internet since it first started. He loves to use his expertise in content and digital marketing to help businesses grow, through managed content services. After living in the United States for 15 years, he is now in South Australia. To learn more about how Alan can help you with content marketing and managed content services, contact him by email.

Technical Expertise

Alan is also a techie. His father was a British soldier in the 4th Indian Division in WWII, with Sikhs and Gurkhas. He was a sergeant in signals and after that, he was a printer who typeset magazines and books on his linotype machine. Those skills were passed on to Alan and his brothers, who all worked for Telecom Australia, on more advanced signals (communications). After studying electronics, communications, and computing at college, and building and repairing all kinds of electronics, Alan switched to programming and team building and management.

He has a fascination with shooting video footage and video editing, so watch out if he points his Canon 7d in your direction.