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 The Affiliates Home

http://store.xiiiv.com/rss
In The News:

Levelling the playing field  iGaming Business
A Twins/Saints team-up could benefit both teams' business  Minneapolis / St. Paul Business Journal

Affiliates Need To Read Their Newspaper

Millions of people check the news everyday-- in the morning... Read More

Choosing An Affiliate Marketing Program

If you are new to affiliate marketing, you are probably... Read More

8 Ways To Promote Your Affiliate Products

Many affiliates fail in affiliate marketing because they limit their... Read More

Back-End Selling With Affiliate Marketing

More and more people are getting into online businesses for... Read More

Why Two-Tier Affiliate Programs are Best

When you join an affiliate program or start an affiliate... Read More

11 Awesome Ways To Explode Your Affiliate Commission

1. Start your own affiliate program directory. Join a large... Read More

Six Power Tips on Resell Rights

If you are planning to take the path of the... Read More

Affiliate Programs ? The Fast Track to Wealth

Remember the day when you made the ultimate decision to... Read More

Affiliate Revenue For Beginners

Affiliate programs can be a very powerful source of income... Read More

Affiliate Program Mastery: Learn How To Build Internet Capital Goods for Free

As I mention in almost all of my articles, 97%... Read More

The Best Affiliate Programs Increase Your Website?s Earnings Potential

Taking full advantage of your website's earning potential is as... Read More

How to Run A Successful Affiliate Program

There are many people who log onto the internet everyday... Read More

Content Really is King

It is every affiliate's wish to have unique site content... Read More

How To Make Affiliate Sales In 15 Minutes

If you are one of the 98.6% of affiliate members... Read More

The Many Benefits Of Affiliate Programs

Throughout the coming weeks, I am going to thoroughly cover... Read More

In Mourning for the Google Cash System

Do you remember when you could pick an affiliate program,... Read More

Who Says Affiliates Cant Use Joint Ventures To Make Money?

This is a technique I teach almost every day. Yet... Read More

Affiliate Program As It Should Be

Every off- or online business has a target of growing... Read More

Generate More Sales in ANY Affiliate Program ? Part One

It is my opinion that the best AFFILIATE PROGRAM ever?is... Read More

How To Make Money On A Music Website Through Affiliate Programs?

Do you find yourself looking for a way to make... Read More

Hey, Stop Stealing My Affiliate Commissions!

Don't get offended, I was not speaking directly to you.... Read More

How to Skyrocket Your Affiliate Marketing Revenue in 30 Days or Less

Starting up your internet business as a member of an... Read More

5 Deadly Mistakes That Affiliates Make - A Quiz

Some people are making big money with affiliate programs-some are... Read More

Theres a Tween In Your Future - Are You Ready?

Within 15 minutes of coming through the door from school,... Read More

How to Become a Super-Affiliate

Did you begin your affiliate marketing business like this? You... Read More

http://store.xiiiv.com/rss