Affiliate marketing is still somewhat of a new concept, even though its roots can be traced back to the 1990′s when retailers created platforms in order to analyze third-party online referrals in order to provide financial commissions for sales. Remember what the online world was like in 1995? While commissionable transactions were nothing new even in the year Clueless first came out, turning such a time tested model into one that fit into a blossoming digital era was a challenge.
First of all, there were no geo boundaries for the US tax nexus to oversee. There were marketing rights found in other countries and as in person transactions faded into the abyss, lawmakers began scrambling to make sense of it all. Now, online (only) retailers are booming but they also need to know what kind of legal issues they may face. So far, no clear legislation has been made to keep up with an ever-changing eCommerce industry, but there are three primary legal concerns retailers and affiliate marketers should consider more closely.