Accounting for Affiliate Marketers
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 www.affiliate-home.com">The Affiliates Home
Keeping in mind the old adage idle hands do the devil s work and seeing as how no experts on Wall Street can conclusively explain the reason behind the titanic market sell off of the past couple days in the markets perhaps the real culprit is the lack of economic data to shore up
By Avi Gilburt, ElliottWaveTrader.net It seems the pundits have lost their way. The reasons for the market moves have now confounded most market participants and pundits to such an extent, and they are stretching so far to provide a reason for a market move, that we have moved from the ridiculous to the sublime.
After a decade-long bull run, Morgan Stanley now says it’s seeing signals that it might be time to ditch the growth stocks and hit up value again, with interest rate hikes potentially paving the way for end-of-cycle risks. It’s what Morgan Stanley calls a “tipping point” that “lays the groundwork for something of a
Oil industry titans are still not in agreement over what to expect from oil prices in the near future, with a wide array of guesses calling for both a spike in prices and a renewed downturn. At the Oil & Money Conference in London, this disagreement was on display . Ian Taylor of Vitol, an energy trader, said that
Another big drop hitting this morning s pre market indexes following one of the biggest sell offs in 8 months yesterday Both the Dow and Nasdaq hived off more than 3 on Wednesday while the Nasdaq fell 4 Usually these types of performances are direct reactions to cataclysmic events that
Shutterstock photo Days like yesterday are shocking for investors. The Dow fell over 800 points, representing a drop of over three percent, while the Nasdaq fared even worse on a percentage basis losing over four percent on the day. Those are scary numbers, and most people’s reaction is to immediately start
Natural gas prices have spiked over the last few weeks as U.S. inventories run low ahead of the peak winter heating season. Nymex natural gas prices have jumped nearly 15 percent over the past month, rising to roughly $3.30 per million Btu (MMBtu). The market has clearly grown a little concerned about adequate
Shutterstock photo Credit-analysis firm Moody’s Investors Service is sounding the alarm bells over “rising inequality” as the gap widens between America’s rich and poor, potentially threatening the country’s AAA rating. So much for that vision of a newly emboldened American working class … Instead, Trump’s
America s hurricane season is no joke a new Category 4 storm 160 Hurricane Michael is pointed toward the Florida panhandle and expected to make landfall this afternoon No fewer than 35 counties in the area have declared a state of emergency Should this storm strike with its current 145
Ahead of today s market open futures are once again down now for the fourth consecutive day going back to last week s historically strong employment numbers from Wednesday s ADP private sector payroll report to Thursday s jobless claims to Friday s federal government non farm payrolls
Shutterstock photo Here at Nasdaq, we often say “information is the lifeblood of markets.” That’s especially true in today’s digital era, and it’s not hyperbole. Market data is far more than simply a collection of buy and sell orders communicated on stock-trading platforms. It’s the collection and curation of
Though today is a bank holiday in the U S in most places still celebrating Christopher Columbus discovery of America whereas some states have switched the focus to celebrate Native Americans on this day domestic stock markets will remain open today No major economic data is scheduled
September payrolls from the monthly survey conducted by the 160 U S Bureau of Labor Statistics BLS 160 has been released prior to the opening bell this Friday and on the headline numbers at least the numbers are mixed 134K new jobs were created last month far lower than the 160
Rising oil prices are hurting consumers, Fatih Birol, the Executive Director of the International Energy Agency (IEA), says, calling on major all producers to do the best they can to further boost production and ease persistent supply concerns that pushed Brent Crude to above $86 a barrel on Wednesday. “Some
It s Thursday again ahead of the bell which means it s time for another earth shattering 160 Initial Jobless Claims 160 report Last week first time claims fell by 8000 from a slightly upwardly revised previous week to 207K matching the 4 week moving average These numbers are back