A few questions about a new online business - advertisers, products, drop shipping

Discussion in 'Growing and Managing a Business' started by OnMyWatch, Apr 6, 2012.

  1. OnMyWatch

    uix_expand uix_collapse
    New Member

    Apr 6, 2012
    Likes Received:
    Hey everyone,
    I figured this was the best place to post my question, since it goes in several directions.
    I currently have a website that has recently come across a bit of success and I needed some advice as far as what to do with it. I have an affiliate marketing site. I have yet to place any affiliate ads, however. I'm familiar with how to affiliate market...what I'm responsible for, the legalities etc..., but a few other opportunities have come up that I wanted to ask about.

    1. Advertising:
    I've started being contacted by advertisers. I'm very willing to work with them, as the website currently has no other income, besides a very small amount of adsense ads. However I'm not sure how to go about the process of presenting them with terms/conditions and whatever else I need to do to protect myself. Anyone know of an example I can look at? :confused:

    I've figured out how to price the advertising, however I want to make sure about a few things, as far as payment goes. I just set up a business paypal account, and signed up as an individual business, which is what I am. I don't have any special licenses or tax information or anything. I actually don't even have an EIN yet, as I've been unemployed for a very long time now. As many of you know, you don't need an EIN to be an affiliate marketer. You're able to collect your earnings and write a big check at the end of the year (if successful, of course). I want to make sure that I'm not doing anything illegal by accepting these payments. What I figured I'd do is invoice the advertisers, they pay, and I'll print out the transactions for tax purposes. I'm wondering if that is all there is to it, or if I need to take further steps as far as the IRS and other legalities go.

    2. Products:
    I've recently had a company make bracelets that relate to the topic of my website. Some of my users have requested this. I don't want to go the route of having to get a full merchant account, but would rather use PayPal or Google payments. If I am to sell my own items on the website, again, I'm wondering what my responsibilities are as far as taxes and other legalities go. I'd assume that it's not as simple as throwing the product up on the page, with a paypal check out button and sending the item along as if my guests had purchased it through eBay (which I have a lot of experience with in the past).

    3. Drop Shipping:
    One of the companies I wanted to affiliate with informed me that they do not have an affiliate program, but did invite me to participate in their drop shipping program. Again, I'm wondering what my responsibilities would be as far as licensing, taxes and legalities go. This is a product that I find very important to include on my website, so I am interested in entertaining the idea. However, if it's a huge hassle, it's not worth it, as it will deter too much from my original plan, and I don't want to spread myself too thin.

    Last, I'm wondering how much an individual must make in 1 year, from their online business, to have to report to the IRS. At this moment in time, the site has not taken in any money (a few dollars from Ad sense, though I'm not sure how much that counts for-I suppose I need to report it as well, however?).

    Do you guys suggest that I go speak with a tax expert (our family does have someone we go to), or anyone else for that matter? My site has been concentrating on SEO, above the money making aspect, and it's now ranked at a place where it's time to get the ball rolling. I dont' want to do anything that's going to cause problems, isn't completely legal, or isn't proper.

    I REALLY appreciate it. Thanks so much for taking the time to help me out. :D;)
  2. paralin

    uix_expand uix_collapse

    Apr 3, 2012
    Likes Received:
    I know many places where you can find tips on making money easily. If you visit "ratracewinner.com" and "businessideas.com" then it will be useful for you. I also get help by these places whenever I face problem in my business.

Share This Page