Whiny Brick And Mortar Retailers Behind Internet Sales Tax

In 1992 the Supreme Court of the United States ruled that a business without a physical presence in a state should not be required to pay that state’s sales tax. In the last couple of years however, critics of that ruling have begun to make more of a push for most online retailers to pay state sales tax. This is all based on the pretense that nearly 20 years ago online sales were minimal and made little impact on a company’s bottom line. Besides the fact that many states have been chipping away at huge retailer Amazon.com, forcing them to pay taxes in states where affiliate marketers reside (which they promptly fire), there is a consensus forming in Congress to end what some see as a tax loophole.

Unfortunately, this is being brought about by cry baby members of the Retail Industry Leaders Association in the name of fairness. They state that it simply isn’t fair that online retailers don’t have to pay state taxes while customers come into brick and mortar retailers, use up a salesperson’s time inquiring about a product and then, sometimes right in front of the salesperson, order that product online via their mobile device. While it is certainly rude of anyone to be so blatant as to order right in front of the salesperson who just helped them, and it is a bummer for a physical location business to lose a sale such as this, there are really 2 issues going on here.

First, this kind of thing will still go on even if all online retailers are taxed, because exclusively online business will almost always sell at a lower price point than a brick and mortar establishment. Why? They simply have the ability to do business cheaper with much less overhead. Do you ever even think of the tax savings when purchasing online? Isn’t it usually the huge price difference that incites you to make a purchase via the web? Taxing a business to be fair in this instance is absurd because it will do nothing to curb the actions of people looking for a better deal. You might as well make it illegal to use the time of a retail location’s salesperson when you really aren’t intending to buy from them (I probably shouldn’t have given you socialist legislators reading this any ideas).

Secondly, rather than build an online presence or do better marketing to get more online sales, the whiny Retail Industry Leaders Association (RILA) and brick and mortar businesses want the government to step in and “level the playing field.” Below is directly from the RILA website:

“RILA also supports state action seeking to allow states collection authority by establishing nexus for online-only retailers through various means, or through direct state assessments of online-only retailers that have established facilities in a given state, as stop-gap measures until federal action to level the playing field can be enacted.”

Really? We have a completely out of control government in this country and in the name of fairness, you want to give them even more power? You want the federal government to make decisions for the states that are granted to them by the Constitution? Because brick and mortar retailers were not first or better at online marketing than companies like Amazon, they now demand that the playing field be leveled. Is anyone seeing the absurdity in this?

If you have never read Ayn Rand’s, Atlas Shrugged, this kind of leveling the playing field, cry baby stuff from misfit retailers and their industry organizations is a prophetic message right from the pages of Rand’s novel written some 50 years ago. Rand took the absurdities of this mode of thinking to its logical conclusion (which we are not far from these days) and her fictional society eventually destroyed itself. Do we not creep ever closer to that when we demand government action in the name of fairness?

While some see this as a big source of revenue for cash strapped states, it has hardly brought in but a trickle of revenue for states that have implemented an Internet sales tax. And if a national rule were to be implemented via a Congress that is in every aspect of our lives these days, that would impose an unfair burden on small business trying to comply with the multitude of different tax jurisdictions between states, counties and cities. While brick and mortar retailers would only have to be concerned about paying sales taxes in their local municipalities and or states, online retailers would have to be familiar with every tax law in every state, county and city. Mountains of paperwork would be required to comply with the laws of every state thus putting some online retailers out of business.

If there were even a chance of states being responsible with additional tax revenue, the idea of taxing online purchases might fly a little easier, but federal and local governments have proven over and over their complete incompetence when handling money that does not belong to them. States do not need more of our money. The more they take from us, the less we put back into the economy. Let’s keep out of state purchases tax free as they have always been.

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Sell Digital Downloads With DPD Shopping Cart

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My wife and I sell a number of digital download products online and use Paypal as our payment system. While Paypal is the most trusted of the online payment systems, it leaves a lot to be desired in the digital product delivery department. Order fulfillment has been an issue with Paypal from day one of putting our first product online. You can redirect someone to a download page once they complete their transaction, but having your customer actually reach that page and having that page be secure have been ongoing issues with how Paypal works. And you also can’t email anyone from PayPal with their secure download link when they make a purchase.

To make sure everyone gets their products for the last 3 or 4 years I have been emailing every single customer with a prewritten template that explains there is occasionally a problem with getting to the download page and we include a link for their download in the email. Obviously, that is not the most efficient system in the world and being that we will be leaving for a month long vacation out west soon, I needed a solution to our digital product delivery through Paypal. Enter DPD Shopping Cart, the answer to all your digital product delivery needs. Not only can you sell digital downloads with DPD Shopping cart, you can also use DPD to run an affiliate program for any of your products.

After checking out another system that required you to install software on your own server, DPD Shopping Cart turned out to be much better solution mainly because it is nearly brain dead simple to use. With DPD it will automatically send your customer to a secure download page for them to get their product and it will send your customer an email as well, directing them to the secure download page. To make sure no one shares their private link, you can make the links you send customers good for from 1 day all the way up to 1 year. You upload your products to DPD servers and they take care of assigning your specific customer their own specific download link.

Not only can you set up DPD to deliver products you sell via Paypal, you can also set it up to work with Clickbank, 2Checkout, PayDotCom, Google Checkout and AlertPay. It is very comprehensive and allows you to do may things you would have to have developer knowledge to do with all these digital checkout systems. Other nice features of DPD include the ability to create discount coupons for discount sales of your products only to the customers that have the cupon code, the ability to bundle multiple product together into one download, the ability to limit the number of sales of a product (you really can make those limited offers, limited), the ability to set up your own affiliate program and pay people with a mass pay through PayPal and much more.

One of the nicer features DPD has is that it can mark your PDF files with your customer’s name and order number and that can help in keeping then from sharing too many copies of your ebook. When someone’s name is on an ebook in the footer that makes them a little more hesitant to spread around your work for free.

There are several different pricing structures with DPD Shopping Cart from $5 per month for 10 products and 50 meg of space all the way up to 1,000 products with 50 Gig of product storage space. We got the $10 per month plan that allows for 20 products to be sold and up to 1 GB of storage. You have to be careful if you bundle products because when you upload each product that counts as 1 towards your total allowed and then your bundle counts as a another product as well. So you are using 3 products up when you bundle 2 together. Once I figure that out, the solution is to bundle any separate zip files or PDF’s together into a single zip file so, just be aware of how that works.

You can also get a free 30 day trial of DPD Shopping Cart and you don’t even have to put in a credit card so you won’t have to worry about rebills and it really is free for 30 days. And if you don’t like the service, you don’t have to do anything when your 30 day trial runs out.

It is well worth the $10 per month we have to pay to have products delivered securely and an email sent to customers without us having to do anything. If you need a digital product delivery solution, DPD Shopping Cart is the ticket and the easiest to implement that we found. Check out DPD Shopping Cart here.

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The Next Internet Gold Rush

The Next Internet Gold RushMay we be poised for the next internet gold rush? Many of us remember the good old days when you really could put together a quick landing page, just a landing page, and throw tons of cheap Google clicks at it and make a small fortune, or dynamically insert just the right computer error keyword on a direct link and sell a ton of Clickbank registry cleaners. While it will probably look a little different this time around, those days may be upon us in the affiliate marketing world again soon.

I’m referring rumblings of a Facebook Content advertising platform, network, whatever you want to call it, that may in fact be in beta testing as we speak. The information seems to be a little sketchy right at the present time as I can only find a few articles on the subject but, it only seems inevitable that this is what Facebook would want to do with its plans of world domination that may even exceed those of my affiliate manager over at C2M.

Being that Facebook has all kinds of widgets that allow you to Share, Like, comment and even log into certain sites with your Facebook account, it would be easy for developers (if they haven’t already done so) to make an advertising widget  which shows some sort of FB ads. I imagine FB will want to show text as well as image ads. While the standard format of the ads we currently see on FB will probably be available, they have to come out with customizable ad sizes just as Adsense allows its users to utilize its platform fit the content of their sites.

This will be a gold rush both for advertisers and publishers as FB’s reach is some 500 million members and may be the most recognizable presence on the web today, even exceeding that of Google. Hundreds of thousands of its members either are publishers or advertisers or would be if the process were a little easier. With this user base, the process of rolling out the content platform to those interested in making money with their content and those interested in additional advertising opportunities could be accomplished in a matter of months.

Google should be concerned, very concerned, because we could literally have a new and dominating ad platform to take over the net within 3 months when FB decides to hit the start button. Obviously Google is smart and this wouldn’t be a complete surprise to them, but thinking about and preparing for it may be nothing until they actually see it in action and suddenly feel the presence of tens of thousands of Adsense and Adwords users jumping ship or at least spending much more of their advertising dollars with someone else. The days of Google’s $500 to $600+ per share stock price may be coming to an end and they may even beg the 200,000 or so Adwords users they kicked out of their program a year and a half ago to please come back.

To be certain, there are still hurdles for FB to overcome so as to make a new ad platform a dominating force to be a real competition to Google. Facebook hasn’t quite got the ad approval process consistent just yet. It is confusing, biased, maddening, inconsistent and down right absurd in most cases. They have lost thousands of advertisers because of the sheer stupidity of the way they approve ads. To make any inroad into a widely used and competitive force against Google they simply must nail this down to a consistent, unbiased and understandable process for their users. An automated system such as Adcenter or Adwords uses is essential for a smooth flow into giving Google a run for their money. The hit and miss crap shoot for advertisers trying to get their ads approved must end. Their lame excuse that they want to protect their users experience on the Facebook platform won’t translate meaningfully to a content platform.

For publishers there is also plenty of gold to be mined in a new content network, but it will not be an easy thing to get into you can be sure. It will not be like the early days of Adsense where you could throw together a spammy site and slap Adsense on it and boom, you be makin’ teh monies. Facebook will not let that happen. You can bet they will scrutinize every site you put their ads on. Start shining up your content now so it will look appealing and spiffy to those you are seeking to reach and your approval process should be much easier.

When it hits it could be a game changer again for all advertisers and that would include us in the affiliate marketing space. This will definitely be a platform you will want to jump on as soon as you can, figure out how to make it work and not sit back and wonder what just passed you by. Get ready.

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