As someone who owns multiple businesses, I’m often asked how I go about structuring my entities and accounting for the income I bring in from affiliate marketing. Needless to say, there is a plethora of different options to choose from. With so many different ways to properly and effectively operate your affiliate business, a lot of affiliates can’t figure out the most strategic way to lay it out on their own.

I’m not an accountant. Nor am I an attorney. I’m actually far from the two. I’m just a glorified serial entrepreneur. Therefore, how I structure my affiliate business is merely one outlook on the many options available.

Business or Personal

The first decision you have to make is whether you want to earn your money through an incorporated business or through your own personal name. If you’ve never owned your own business before, I always suggest routing all of your affiliate income through to yourself simply to avoid the startup costs of incorporating a business and the headache of creating bank accounts for it.

However, if you’re feeling ambitious and want to make your affiliate operation look a little more professional, I suggest incorporating as an LLC (Limited Liability Company). All of my companies are registered as LLC’s in the State of Florida.

LLC vs. S-Corp vs. C-Corp

One of the most immense benefits of operating as an LLC is its lightweight nature and how easy it is to run. Aside from the benefit of not being personally liable for anything having to do with the company, you are taxed just as you would a sole proprietorship. You are able to take monetary distributions from the business whenever you please and manage the business funds like they are your own.

An S-Corporation is different from an LLC in that the law requires that all employees receive a “reasonable salary” throughout the year. This creates more management and expenses for you as the business owner.

C-Corporations are taxable entities. This means that the income the business generates is taxed as it is earned instead of when it’s distributed to the owner(s). C-Corporations also utilize the concept of “dividends,” which means that, as an owner, you get taxed twice for your portion of the profit once it’s disbursed.

If you plan on being an independent affiliate with no partners or additional team members, your best bet is to generate income through your own personal name or set up a simple LLC with the state you reside in.

If you are trying to assemble a large team with a number of employees, an S-Corporation might be your best bet.

Finally, if you plan on managing a handful of employees and issuing stock options to each of them, it will be best to register your company as a C-Corporation.

No matter what you decide, be sure to hire an experienced business attorney and accountant to keep you in check and abiding by the rules of running a successful business.

Logan Lenz is the Founder of Endagon. He also helps aspiring entrepreneurs at www.loganlenz.com.

Article source: http://feedfront.com/archives/article003243

EDINBURGH, Scotland, Sept. 29 /PRNewswire/ — Bigmouthmedia is to conduct a new affiliates survey designed to identify the key issues in affiliate marketing in the current climate.

The digital marketing agency has commissioned the research in a bid to establish firm information about the latest developments and emerging challenges that matter to the sector. Affiliates responding to the survey will be asked for their opinions on a series of issues ranging from networks and tracking technologies to the use of creatives and advertising exchanges.

“Are affiliates most successful when they concentrate on just one niche? Is commission attribution modelling a major threat to the industry? There are many questions hanging over the affiliates industry and we want to know which issues matter most to them,” said Fiona Robertson, head of Affiliates and Performance at bigmouthmedia.

“Our Affiliate partners are extremely important to us. We believe it’s important to know what makes their businesses work, to understand what they think of the digital industry as a whole, and that identifying affiliate opinions on the key issues currently facing the industry is an essential step towards creating greater clarity in the sector.”

The questions include: are affiliates better digital marketers than many of the merchants they work with? Are there too many affiliate networks in the UK? Do networks in the UK have a problem with low quality or fraudulent traffic and does Google want to become the world’s largest affiliate?

The new bigmouthmedia affiliate marketing survey, which closes on October 6th 2010, is open to any affiliate that wishes to participate and receive a free copy of the final research in return, and one lucky winner will also get an additional a prize. Responses from networks, agencies and merchants are not being sought.

About bigmouthmedia

Founded in 1997, bigmouthmedia is Europe‘s largest independent digital marketing agency. With a team of over 200 staff located across 13 offices in 10 countries on 3 continents, the company maximises exposure for major brands online through a variety of fully integrated digital marketing channels: Search engine optimisation, PPC, Online Media Planning, affiliate marketing, Social Networking, Brand Monitoring, Online PR and Web Analytics. Bigmouthmedia also provides up to date daily digital marketing news to ensure clients are fully informed and aware of all industry developments.

SOURCE bigmouthmedia

Article source: http://www.prnewswire.com/news-releases/bigmouthmedia-identifying-current-key-affiliate-marketing-issues-103991263.html

Social Media Strategies in Affiliate Marketing presentation from Affiliate Summit West 2008, which took place February 24-26, 2008 in Las Vegas, NV.

• Sam Harrelson, VP of Business Development, OnCard Marketing (Moderator)
• Stephanie Agresta, Partner, The Conversation Group
• Justine Ezarik, iJustine
• Tris Hussey, Training Manager, b5media
• Deborah Schultz, Principal/Chief Strategist, DeborahSchultz.com

With almost 50% of Internet users now creating and sharing their own
content, this new medium is changing how markets operate and how
companies communicate with consumers.

Note: the companies and positions listed above were current as of the
time of the conference. Some of this information may have changed since
then.

Video: Social Media Strategies in Affiliate Marketing

Article source: http://affiliatetip.com/news/article003460.php

From The IAB’s Affiliate Marketing Council (AMC)

An explanation of the Behavioural Retargeting Code of Conduct, August 2010

Behavioural Retargeting (BR) is a method of online promotion. It is premised on serving banner advertising that is targeted based on previous user behaviour. Retargeting helps companies advertise to website visitors who leave without a conversion, encouraging them to return and transact.

How it works

A consumer browses an advertiser/merchant’s site or products then navigates away without purchasing from the advertiser/merchant. As the consumer didn’t transact and in an effort to encourage the consumer to return and purchase, relevant banner ads for that advertiser/merchant are served by behavioural retargeting companies on other websites after the advertiser/merchant’s site has been visited.

The core premise is that because the consumer has had a level of engagement with the advertiser/merchant, additional exposure (be it a general banner or banner featuring specific offers, deals or products) following the consumer visit to the advertiser/merchant site will lead to that consumer transacting when they previously may not have done.

The ads that are served will usually be bought from ad networks by BR companies on a CPM (cost per thousand impressions); the resulting sales from the ads being rewarded by advertisers/merchants on a CPA basis when operated via affiliate networks.

Why is a code of conduct important?

In order for behavioural retargeting to be effective many BR companies require Post Impression (PI) or Post View (PV) cookies to be used alongside traditional click cookies. PI/PV cookies are impression based as opposed to click based; in other words, a cookie is stored on an impression being served rather than a click.

Historically very few networks or affiliate programmes have operated PI/PV cookies, the ‘harder’ action of a click being seen as more in line with the CPA and sale function of affiliate marketing rather than the branding element of banner creative (and therefore impression cookies).

In working with PI/PV cookies the industry needs to set some hierarchy rules involving click and impression cookies and standardising overwriting procedure across all networks.

Also, given banner impressions are perceived as a more passive, brand focused area of online marketing, clarity is needed on whether the cookie length should be different depending on the type of cookie.

With BR becoming more prevalent and BR companies looking to run activity on a CPA basis via affiliate networks a code of conduct has been devised that all BR companies must adhere to when running activity via member networks of the AMC.

The Council has taken the decision to make some elements compulsory with others subject to individual advertiser/merchant choice. Where this choice is available to advertisers/merchants the network will be able to advise on the range of options available.

THE CODE

The following code of conduct applies to all affiliates/publishers who engage in behavioural retargeting in the UK via the following affiliate networks: Affiliate Future, Affiliate Window, Affilinet, Buy.at, Commission Junction, Linkshare, OMG, TradeDoubler & Webgains.

The following acronyms apply:

* Behavioural Retargeting, (BR)

* Post Impression cookies, (PI)

* Post View cookies, (PV)

Member networks are able to work with BR affiliates/publishers making use of PI / PV based on the following conditions:

COMPULSORY

1.PI / PV will be run in a controlled way for select affiliates/publishers deemed to offer additional value. This value is at the discretion of the network. The advertiser/merchant will be encouraged to highlight the programmes where PI / PV is in place, offering extra transparency for affiliates/publishers.

2.A PI / PV cookie should never overwrite a click cookie. The following hierarchy should be adhered to by all networks:

* Where a single Post Click affiliate cookie exists in isolation – The Post Click cookie is attributed with the commission (click referrer)

* Where multiple Post Click affiliate cookies exist – The most recent Post Click cookie is attributed with the commission (last click referrer)

* Where a single PI/PV cookie exists in isolation – The PI/PV cookie is attributed with the commission (PI/PV referrer)

* Where multiple PI/PV cookies exist – The most recent PI/PV cookie is attributed with the commission (last PI/PV referrer)

* Where PI/PV cookies and Post Click cookies coexist – The most recent Post Click cookie is attributed with the commission (last click referrer)

SUBJECT TO ADVERTISER AGREEMENT

1.BR affiliates/publishers should endeavour to provide adequate transparency on where their ads are likely to appear and on which sites. For example, the range of portals and sites or specific pages that are part of the ad inventory and whether it comes from IASH approved ad networks together with clarity on where the ad placements are likely to be (above the fold, ad format etc.).

2.PI / PV cookie lengths are usually shorter than click cookie windows, for example 24 or 48 hours. This should be a key consideration.

The above code of conduct will be adhered to and enforced by all member networks of the IAB AMC.

Affiliates/publisherd engaged in BR will be audited every six months.

Any affiliates/publishers found to be transgressing will be given two weeks to demonstrate they are compliant. Failure to do so could lead to all member affiliate networks suspending the affiliate/publisher from their networks until the affiliate/publisher is deemed compliant.

Interpretation of the code is at the discretion of the AMC.
______________________
From The IAB’s Affiliate Marketing Council (AMC)