Wiseaff

Will Overstock have to Close or Move their Affiliate Program?

According to Overstock.com's Press Release yesterday, the company has terminated more than 3,400 affiliates residing in New York:

Overstock.com, Inc. (Nasdaq: OSTK) announced today that it has notified its more than 3,400 New York-based affiliate advertisers that as of June 1, 2008 they can no longer provide advertising for Overstock.com until either New York changes its controversial new internet consumer tax law or the courts say the law is unenforceable. On June 1, the controversial new law will require internet retailers to turn off their New York-based ad partners or collect an up to 9.5% sales tax from all New York internet customers.

But wait, Overstock's entire affiliate program is with Linkshare, a New York based company, and Linkshare earns a percentage of EVERY OVERSTOCK AFFILIATE TRANSACTION!!!

So based on this, it would appear that Overstock would still be liable for the 9.5% sales tax from, as would every Linkshare merchant.

Perhaps pissing off your 3,400 new york based affiliates in a knee jerk reaction wasn't that best idea since it doesn't really solve the problem?

It's all about the O...  In this case, O crap...

Has Commission Junction lost faith in Affiliate Marketing?

We received a note today informing us that Commission Junction has decided to shut down their own affiliate program.  Many affiliate networks have affiliate programs that pay for new advertisers and publishers to the network.  Not CJ anymore, I guess I will have to remove their banner from Wiseaff.com!

Here is their note:

Dear CJRP Publisher,

The Commission Junction Recruiter Program has surpassed the goals set at the start of the program. We would like to thank you for being a part of the Recruiter Program. The business needs for the Recruiter Program have changed, and the decision has been made to close the account. The account is targeted to be closed December 14, 2007, with all publishers set to be expired on December 12, 2007 and final leads batched in prior to closure on the 14th.

Commission Junction wishes you much success in your future endeavors with your publisher account at Commission Junction.

Thank you,

CJFP Program Manager

Commission Junction

So the program has surpassed it's goals and is being shut down?  Is this the same kind of advice they give their advertisers.  "Hey, your program is doing great, better than anyone expected, time to shut it down!"

Not only does the cobbler's kids have no shoes, they are actually burning the ones they had!

Wrong message, wrong decision.  Sorry CJ, we still love you...