I have been blogging for some times and I used only amazon as an affiliates to share books I love to read and other minor products that I used, not a major income through it but enough to take a notice when it is gone. A few days ago though Amazon dropped a bomb on all its California Affiliates without much warning.
On June 29th, Evening I just checked my email and I saw this notice;
Hello,
Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011. Those California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect your ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.
We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
Regards,
The Amazon Associates Team
Effect on California Affiliates and how it was handled:
- There has been speculated that there are about 25,000 affiliates in California who promoted Amazon. Now, they will be affected as they no longer will be getting paid for giving sales to Amazon.
- Affiliates did not get much warning (It has been happening in a few other states such as Illinois, Colorado and others) but it was quick notice within a day for California affiliates. That did not gave anyone chance to react or prepare for this news.
- Some expert bloggers made a lot of money from amazon and now that resource has been taken from them.
- The biggest thing is Amazon still has kindle research center and other subsidiary companies in California, so they may have to still pay taxes and all affiliates are screwed for nothing.
Regardless of how politics, taxes and corporation deals with it, many online bloggers needs to find an alternative to Amazon to make money. While, I am last person to teach people about making money, we all need some money to keep site going, keep writing and manage the cost of running website. I thought of sharing a few alternatives to amazon for those who might be affected such as California residents right now.
Solution: Amazon Alternative:
The best thing about Amazon is that it has every type of product you can imagine, digital, physical, for men, women and children for every ages, books to gadgets and even someone told me you can even buy car or 2% Milk there too. I am not sure how shipping works with milk to keep it fresh! There are some weird products there, there is something for everyone there.
The best bet would be ebay and overstock but ebay has made it hard for people to join now and overstock has made a same action as Amazon by cutting off California affiliates. So, one needs to get various affiliates to replace the amazon’s wide variety of product choices.
- If you promoted books, movies then best bet would be borders and barns and noble affiliates.
- For other products, Walmart, Target, Sears would work.
- For computer and electronic, best buy, office depot would work. Babierus and Toysrus are good for toys products.
- Some people has suggested, setting up an LLC or Corporation in other state and set up amazon account there. It may not be easy, viable for some. I am not sure about legality of it too, so if you choose to do it, ask lawyer or expert before doing it.
- You can sell your amazon center website to someone as Pat suggested.
- You can re use your amazon product articles in squidoo legally and get paid from squidoo for any partial sales from Amazon.
- I find the best solution while searching online is Viglinks, where also you can use their system for Amazon and other affiliates and get paid 75% of amazon pay and they take 25% cut. There is another one called skimlinks a few people I know seemed to have trouble with them. You can certainly check both out and choose what works for you.
- Think about making money from other resources, do not put all of your eggs in one affiliate basket.
Do you have any other suggestions? If you were in other states where Amazon terminated the affiliate relationship, what did you do that is working for you? I think other states in US might be next in line sooner or later so it may affect many people.