If you are an affiliate marketer, then you are in business. Therefore, you should treat it like a business. Keep in mind that Linkshare, Clickbank, Commission Junction and all the other affiliate marketplaces are going to report your earnings to the IRS.
Each of them requires that you provide a Social Security Number or EIN number when you apply with them. These numbers are used to report your earnings. At the end of the year, you'll receive a 1099 form which is the IRS earnings document given to Independent Contractors.
Since you have to pay taxes on your income, you should take care to make sure that your income is properly calculate. Remember, gross adjusted income is going to be the total amount that you earned - your expenses. For this reason, you really need to keep track of all of your affiliate marketing expenses.
Keep receipts and track all the following:
* Web Hosting Costs
* Affiliate marketing tools (such as your WordTracker membership fees, the cost of products like Adwords Analyzer, etc.)
* Any PPC advertising that you purchase.
Don't do as I have been prone to do and wait til the end of the year before you start putting these numbers together. You'll forget many and you won't be able to gain access to others.
For example, with PPC advertising, Google seems to keep records online forever. Great. But Overture only keeps the last 90 days and you can't - I repeat - You CAN'T get those records older than 90 days. (Ask me how I know :(
Getting receipts means that you'll have to think ahead. When you buy something online, print the receipt page. When you subscribe to a service that may pull a fee from your checking account or credit card account on a monthly basis, make sure to opt in to any e-mail notification of transactions that you might be able to get.
Print everything out and put it in a folder for that years tax records. You won't regret it when tax season comes along.
You will also get a much better picture of how much money you're earning. I think a lot of affiliate marketers brag about their checks, but conveniently forget that out of the $10,000.00 they earned last month, they spent $8,000.00 for PPC advertising, $27.00 for Wordtracker, $100.00 for their web host, ect, etc, reducing their actual profit to enough to buy some bubble gum.
There's great software that makes all of this easier of course. Quicken or MS Money Home and Business editions or PeachTree accounting would all make the whole process of tracking these numbers much less painful.
Finally, there are real benefits (and some costs) to incorporating yourself. Incorporating changes the tax rules and create scenarios that let you put more of your profit into your pocket. They also help to shield you from liability. I'm not a lawyer, so I'd recommend talking to an tax law lawyer. I incorporated in Florida and the entire expense was about $495.00.
Charles Waters discovered affiliate marketing in 2003 and has never looked back. He operates several successful websites, including The Affiliates Home
![]() Google News Updated : Mon, 13 Oct 2008 23:51:55 GMT Palin: We can't let 'leftist groups…steal this election' - CNN Political Ticker
CNN Political Ticker - “The truth is that far-left groups in this country will do anything to help the Obama-Biden Democrats win the White House and maintain their majorities in Congress,” Alaska Gov. Voter registration boom favors Obama NC elections broad probes ACORN forms Publ.Date : Mon, 13 Oct 2008 22:39:24 GMT Stocks Soar on Wall Street as Markets Bounce Back from Worst Rout ... - Voice of America
Voice of America - By Barry Wood The Dow Jones Industrial Average Monday registered its biggest daily point gain ever, gaining 936 points or 11 percent. Wall Street explodes, marks biggest 1-day gain Dow Surges On Global Bailout Plans Publ.Date : Mon, 13 Oct 2008 23:09:50 GMT Rangers Prospect Cherepanov Dies After Collapsing During Game - New York Times
New York Times - By Stu Hackel Nineteen-year-old Russian forward Alexei Cherepanov, who was a Rangers first-round draft choice in 2007 and considered one of the organization’s top prospects, died on Monday after collapsing near the end of a game between his KHL team ... Cherepanov collapses on bench during game, dies at 19 Rangers prospect dies during game in Russia Publ.Date : Mon, 13 Oct 2008 22:37:16 GMT Britain withdraws terror detention law after defeat - AFP
AFP - LONDON (AFP) - The British government on Monday withdrew a plan to extend the time suspected violent extremists can be held without charge after the House of Lords voted against it. House of Lords deals fatal blow to 42-day terror detention plans Ministers drop 42-day detention Publ.Date : Mon, 13 Oct 2008 23:01:32 GMT Romo Out For a Month - Washington Post
Washington Post - The Dallas Cowboys will be without quarterback Tony Romo for as long as a month because of a broken finger on his throwing hand. Romo suffered a broken right pinkie on the first play of overtime of the Cowboys' loss Sunday at Arizona, according to a ... Romo sidelined with broken finger Cowboys' Romo has broken finger, may miss 4 weeks Publ.Date : Mon, 13 Oct 2008 18:10:26 GMT North Korea Reopens Yongbyon Nuclear Reactor to UN Inspectors - Bloomberg
Bloomberg - By Bill Varner Oct. 13 (Bloomberg) -- The United Nations' nuclear watchdog agency was given access today to North Korea's plutonium- producing plant at Yongbyon, a reaction to the US decision to remove the nation from its list of states sponsoring ... NKorea grants UN nuclear watchdog access to Yongbyon: IAEA North Korea allows back nuclear inspectors Publ.Date : Mon, 13 Oct 2008 21:38:19 GMT Caffeine Consumption Doesn't Raise Overall Breast Cancer Risk - Washington Post
Washington Post - By Alan Mozes MONDAY, Oct. 13 (HealthDay News) -- Drinking coffee or consuming other caffeine-laden foods does not appear to boost breast cancer risk, new research indicates. Caffeine, Breast Cancer Link Minimal Caffeine 'can increase breast cancer risk' Publ.Date : Mon, 13 Oct 2008 22:00:13 GMT Increase Online Traffic |
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