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Web retailer Amazon.com Inc. sued New York state and its taxation department to contest the constitutionality of a new state law requiring out-of-state Internet retailers to collect New York state taxes.

The law, which went into effect April 23, requires that out-of-state Web retailers to collect sales taxes from customers in the state if the retailers have New York-based representatives soliciting business on their behalf. The state considers Amazon and other retailers to be subject to this law because they have “affiliate” marketing arrangements. An “affiliate” is someone who advertises Amazon on his Web site and receives sales commissions after a Web site visitor makes a purchase on Amazon.

In its complaint filed April 25 in New York’s Supreme Court, Amazon alleges the law violates several aspects of the U.S. Constitution in its “impermissibly vague and overbroad” nature of requiring Amazon, which has no physical presence or employees based in New York, to collect sales taxes. … continue reading this entry.

Easy Profits with PPC

Pay Per a Click is one of the four basic types of Search Engines. Pay per a click is also one of the most cost-effective ways of targeted internet advertising. According to Forbes magazine, PPC or Pay Per Click, accounts to 2 billion dollars a year and is expected to increase to around 8 billion dollars by the year 2008.

Let us take a look at how PPC Search Engines work.

These engines create listings and rate them based on a bid amount the website owner is willing to pay for each click from that search engine. Advertisers bid against each other to receive higher ranking for a specific keyword or phrase.

The highest bidder for a certain keyword or phrase will then have the site ranked as number 1 in the PPC Search Engines followed by the second and third highest bidder, up to the last number that have placed a bid on the same keyword or phrase. Your ads then will appear prominently on the results pages based on the dollar amount bid you will agree to pay per click.

How do you make money by using PPC into your affiliate marketing business?

Most affiliate programs only pay when a sale is made or a lead delivered after a visitor has clickthrough your site. Your earnings will not always be the same as they will be dependent on the web site content and the traffic market.