If you\u2019re an affiliate, you\u2019re in danger.<\/p>\n
In fact, you\u2019re being attacked from two sides at the same time.<\/p>\n
On the one side, you’ve got cash-strapped states (like California) trying to use affiliates to…<\/p>\n
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lay claim to more sales taxes. Companies like Amazon are quick to pull the plug on affiliates if states press the issue. Unfortunately, affiliate are caught in the cross-fire and often lose valuable sources of income due to the actions of greedy legislators.<\/p>\n
On the other side, you\u2019ve got companies who either delay payment of affiliate commissions or avoid payment altogether. I\u2019ve personally found recent examples of \u201caffiliate skimming<\/a>,\u201d non-payment of affiliate commissions, and other forms of commission theft.<\/p>\n Believe it or not, there is now a Facebook group that is dedicated solely to exposing companies that don\u2019t pay their affiliates. The commissions owed are often $20,000 or more. Once a company stops paying affiliates, very few are ever able to collect the money owed to them.<\/p>\n How should affiliates respond? How can they protect themselves?<\/p>\n First and foremost, make sure you live in a state that is friendly toward small business — especially online businesses. When possible, avoid tax-hungry states like California, Illinois, and New York. If you live in a state that is hostile toward small business, it\u2019s only a matter of time before your profits are pillaged (or cut off entirely).<\/p>\n Secondly, and almost as important, affiliates should do their due diligence and make sure they\u2019re dealing with reputable affiliate programs before they join them. Because it\u2019s not enough to refer a sale. You can\u2019t count that commission until you\u2019ve actually received payment by check or PayPal. Until you get paid, all you have is a \u201cfeel good\u201d number in a digital ledger.<\/p>\n -Ryan Healy<\/p>\n P.S. One way to pre-screen affiliate programs is to reference the Paid On Time Affiliate Program Directory<\/a>. Every program in the directory has agreed to pay their affiliates on time and abide by the Paid On Time Code of Ethics.<\/p>\n