Since 1998, I’ve maintained a site at THELORDOFTHERINGS.com to help people find copies of the works of J.R.R. Tolkien. See, I’m something of a fan of Tolkien’s works.
Now, thanks to a war between greedy, desperate, money hungry California (and other states), and it seems an equally greedy, desperate, money hungry Amazon.com, Amazon.com has decided that all “contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011.”
I have always been very suspicious of Amazon.com’s accounting of the trade I sent their way. It was always way beneath what my logs showed actually going to Amazon.com. Since the site was never about making money, I didn’t really look into it, but now, I just may.
Today, in a quick series of e-mails from Amazon.com, they tried to blame these actions as being the fault of Governor Brown. In truth though, it was really just a cynical act to negate the taxes they now need to collect from California customers, by cutting out the ten percent or so they would have had to pay to their associates, if those now canceled contracts were still in place.
I think it would be interesting to know just how much business Amazon.com loses by doing this. Most of these now kicked-to-the-curb associates would first have to find a way to attract readers to their site before they could then send referrals to Amazon.com. I was lucky enough to own a domain that a high percentage of people would come to first when looking for copies of Tolkien’s works. In fact, I actually get very little traffic to THELORDOFTHERINGS.com from search engines at all, most visitors arrive directly. So knowing that, combined with this greedy, desperate, and money hungry act by Amazon.com, is why I’m now more than a little interested in just how much traffic got ‘lost’ along they way from my site to theirs.
For now, I’m a little conflicted. I still really want people to find Tolkien’s works, and my site serves that purpose well. On the other hand though, I really don’t want to reward those greedy, desperate, and money hungry people at Amazon.com. I guess I got me some thinking to do.
Below are copies of the two e-mails I received from greedy, desperate, and money hungry Amazon.com.
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
Followed shortly by …
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
