What Should You Do If Amazon Terminates Your Amazon Associates Account?

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Posted by Keith Lee | Posted in Amazon Associate Program Termination | Posted on 30-07-2011

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A fellow Amazon Associate wrote to me and asked me what should he do if his Amazon Associates Account got terminated?

Many of you might have heard about the announcement made by Amazon on the June 30, 2011 that Amazon terminated the Amazon Associates Program for all residents of California.

Amazon Associates Program in California Terminated What Should You Do If Amazon Terminates Your Amazon Associates Account?

 

This Was What Happened To 10,000 Amazon Associates in California

About 10,000 Amazon Associates in California received the following email on the June 29.

Hello,

For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by California-based marketing affiliates like you – even if those retailers have no physical presence in the state.

We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, 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 on or before the termination date 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 their 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. We are also working 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

And the 10,000 Amazon Associates received another email.

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

 

What Can You Do Should Your Amazon Associate Account Get Terminated?

I am really sorry for all fellow Amazon Associates living in California whom had their Amazon Associate Account terminated.

I am not living in USA and I can’t really give any legal advice on this matter, but let’s listen to a well-known Amazon Marketer Jan Roos who happened to live in California and managed to get back his Associate Account after the termination.

Jan Roos wrote in his blog on what he did to restore his Amazon Associate Account.

I make quite a good monthly income from Amazon and a few days ago I got the boot along with over 20 000 other California Affiliates.

The next day I got my account fully restored.

What I did was to incorporate overseas, change my details in my Amazon account to my new incorporation address and name. I then called up Amazon and got my account reinstated 100%.

You could easily setup a LLC or Inc in a business friendly state. The process takes one day and the cost is very little. What you then do is open a corporate bank account in that state or country and have your Amazon and other business checks go to that account.

You can then pay yourself salary each month in your home state and pay taxes on that income.

Incorporating yourself is something you should really consider doing anyways because there are many advantages over doing business as a sole proprietor.

There’s a good book on Amazon called Inc Yourself which explains the many reasons why one would want to Inc themselves.

As far as getting yourself incorporated, there are many agencies and companies offering these services online. Just do a Google search for the state you wish to incorporate in and you’ll find a whole bunch of these companies that’l do it for you.

What I did was to Incorporate in a different country that is extremely business friendly and has no corporate income tax and then bank in yet another country.

This way when I go travel the world next year I will pretty much pay zero taxes. I will only pay taxes on the salary that I pay myself here in the U.S.A for the rest of the year.

Now I know this might not be a good option for most but at least think abut incorporating in a different state here in the U.S as it will be beneficial to you in the long run.

Also, do your own due dilligence. I am not giving tax advice or any of that. I am just sharing what I’ve done to get around the issue at hand. I make a good living from Amazon and I worked hard for it. There’s no way greedy politicians will take that from me without a fight.

If your Amazon Associate Account is terminated, maybe you could follow Jan’s method to get your account restored if you want to remain as an Amazon Affiliate (aka Amazon Associate).

 

A Personal Thought on This Amazon Affiliate Termination

Personally, I would like to take this issue further. That is NEVER NEVER to put all your eggs in one basket.

All Eggs In One Basket What Should You Do If Amazon Terminates Your Amazon Associates Account?

Whether you are doing online or offline business, you have to create multiple streams of income.  For example, as an Affiliate Marketer, do not let your income dependent upon only on selling physical products but also include selling digital products. If you for some reason only interested in selling physical product, do not only promote products from Amazon, but also from other Affiliate Networks or Affiliate Programs.

I know it too well how risky if all our income rest on one source.

I started my online venture in 2006 and by 2008 I was making good 4-figure monthly Google AdSense income. AdSense was my only source of income then. But in May 2008, Google terminated my AdSense account without giving me a reason. Despite numerous emails sent to them, they refused to tell me the reason of the termination nor restoring my AdSense account. Unfortunately, during that time my wife was suffering from cancer relapse, so I stopped pursuing that matters in order to focus on looking after my wife.

Since AdSense was my only stream of income and I was too busy taking of my cancer stricken wife, I had not time to rebuild my online business, but at the same time, my wife was not covered with any medical insurance (because it was a relapse), we ran out of money for her treatment especially she was hospitalized for 6 times. Each time with a duration of 5 days to 1 month, particularly the one when she was admitted to the Intensive Care Unit for 3 weeks. It totally drained out all our saving. But thank God that we had a group of good friends who supported us. But still the last time she was hospitalized before she left us to be with the Lord, I could not pay the hospital bill and had to resort to paying in installment.

I learnt my lesson the very hard way. So remember, create multiple source of income and do not put all your eggs in one basket.

There are many companies offer good affiliate program with attractive commission.

 

Amazon Affiliate Fightback by Colleen Slater

Amazon Affiliate Fightback What Should You Do If Amazon Terminates Your Amazon Associates Account?Colleen Slater of the “Amazon Treasure Chest” fame has just released a new product “Amazon Affiliate Fightback“,  a 56-page ebook which consists of 2 components

First component gives detailed background into Amazon affiliate terminations, current states affected, and general reasons why this has occurred.

The second component of “Amazon Affiliate Fightback” provides options for what you can do as a terminated affiliate of the Amazon Associates program.

In this second component, Colleen firstly lists out the immediate steps you should follow if this unfortunate event happened to you;

And secondly, should you decide to stay with Amazon, Colleen offers 6 solutions how you could work around this problem;

Lastly Colleens reveals 5 Physical Affiliate Programs with higher commissions, longer cookies & No Risk Of Termination that you could take advantage of. Here are the 3:

  • Physical Affiliate Program Alternative #1 – Earn Up To 8.5% PER Sale
  • Physical Affiliate Program Alternative #2 – 7 Day Cookie And Up To 6% PER Sale
  • Physical Affiliate Program Alternative #3 – Lifetime Cookie & 7% Per sale

So whether you are affected by this Amazon Termination exercise of not, you will certainly learn very valuable lesson from Colleen’s Amazon Affiliate Fightback, particularly how to prevent this situation from happening to you.

As of this time of writing, Colleen Slater’s Amazon Affiliate Fightback is selling at less than $9. Go get it before the price goes higher by clicking this link.

Dear fellow Amazon Affiliates, all the best to your Amazon Affiliate Business and hope that this Amazon Associates Program termination will never happen to anyone of us again.

Take care and God bless.

 

Comments (2)

Hi there, I live in Illinois and the same thing happen to me and all the affiliates in illinois, it is so wrong that this things happen especially in this bad economy, when for a moment tons of people were getting some income from Amazon, and all our work went to waste.
I am probably moving to Texas and I hope they don’t pass any law like that over there.

Hi Shine,
I am so sorry for what happened to you and all the Amazon Affiliates in Illinois.

I learnt one very important lesson is that Never Never Put All The Eggs In One Basket. We really need to have Multiple Streams of Income.

Take care and all the best to you.

Cheers,
Keith.

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