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California voters get the tax structure they deserve

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Last year after appearing as a guest on WCRN AM 830’s Conservatively Speaking in Worcester Mass.  I

was approached by the station’s general manager with a proposition:

He offered me air time at a price.  I’d sell ads for the time and anything over the cost would be profit (minus my overhead for selling them).

I accepted and 33 weeks later DaTechGuy on DaRadio has grown and expanded as has my local and national reputation.

I understood and still understand the station manager made me this deal, not because I was near the end of my unemployment but because he saw the potential for profit.  If my monthly checks are not forthcoming, or the show hurts the station’s ratings it will be gone, personal needs notwithstanding.  This is how business works.

Which brings me to Amazon.com and the news out of California.

Today on his blog Danny Sullivan put up an open letter to Jeff Bezos bemoaning Amazon cancelling their associate arrangement.

It was a great deal for Mr. Sullivan, he only had to offer links and presto his 4% came in.  With effort, a even larger profit was possible.  Best of all, it required no overhead, or travel, just a few clicks.

With California’s new law taxing their internet sales, the equation changed.  Suddenly any dollars generated through Mr. Sullivan’s site result in an inordinate amount of administrative costs, while the same link elsewhere could bring in revenue without them.  So naturally Amazon ended their arrangement.

Mr. Sullivan is understandably annoyed that a source of money that required very little effort is gone, but he is placing the blame in the wrong place.  He forgets that Amazon didn’t partner with him because they were dying to give him that 4 %, there is after all no shortage of websites that Amazon can offer their products on,  they partnered with him because he represented a new revenue stream at little additional cost or risk. Perhaps Mr. Sullivan and the tens of thousands of affected California associates should have contacted their reps and gotten involved to avoid electing people who’ve made California an economic basket case, causing businesses to leave by the thousands.

Alas that requires a degree of effort larger than creating a link.  It’s much easier to blame Jeff Bezos for doing his job than it is to take a long hard look in the mirror.

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1 Comment

1 Comment

  1. civiltruth24

    July 4, 2011 at 5:16 pm

    Isn't there an old fable about this topic – in fact, I saw it on Amazon, The Goose that Laid the Golden Egg

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