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

Things To Test On Your Website To Increase Sales

The Internet is powerful selling tool. Never before has been easier to start a business... Read More

How to Booost Your Affiliate Commissions by almost 30%

Affiliate marketing is one tough business. Everyone online today is looking to... Read More

High Paying Lateral Keywords

If you run AdSense on your site you know that some words pay more than... Read More

Home Business Affiliate Marketing

How would you like to make money with a Home Business without ever having to... Read More

Affiliate Programs and Picking the Best One!

Okay, so you have been looking at affiliate programs for a while now. Your inbox... Read More

Promoting Affiliate Programs through Personal Recommendations

Publishing articles online is a highly effective way to increase affiliate revenue. In the current... Read More

Internet Affiliate Marketing 101 - Its All About Relationships

So you've found the perfect affiliate program, you've signed up and they gave you a... Read More

Not An Affiliate? Why Ever Not?

If the idea of pursuing a living on the net has repeatedly crossed your mind... Read More

Adsense: How to Make Money With Ads by Google

The chances are that you've seen "Ads by Google" on a variety of websites and... Read More

Five Ways To Maximize Affiliate Profits from Articles

What does it take to become a "BIG EARNER" with your affiliate marketing commissions?... Read More

Is It Possible To Make A Living Being An Affiliate Marketer?

It may sound clich? but it is worth repeating. Affiliate marketing is one of... Read More

Googles Secret Guidelines On Thin Affiliates

Journalist Henk van Ess has caused a flurry of excitement on blogs and forums. In... Read More

Seven Ways to Set Yourself Apart From Other Affiliate Marketers

Okay so you've read (fill in the blank with internet guru's name here)'s book and... Read More

Why Arent You Making a Ton of Cash as an Affiliate?

5 keys to you becoming a successful affiliate:1) HAS THE OWNER OF THE PROGRAM DONE... Read More

The Affiliate Model ? How To Make Money As An Affiliate

Affiliate programs are a very easy and effective way to make money on the Internet... Read More

Generate More Sales in ANY Affiliate Program ? Part Three

Thinking Outside the square is where we last left off. So to carry on from... Read More

How To Profit From 2 Tier Affiliate Programs And Build A Sub-Affiliate Army In The Next 24 Hours

Before I get into depth with this article I first want you to have a... Read More

Whats A Niche and Can I Find One Too?

When I came upon that little word -- Niche -- I wondered, "what is this... Read More

How to Become a Super-Affiliate

Did you begin your affiliate marketing business like this? You surf the internet looking... Read More

Making Money with Affiliate Programs ? Part III

Whether you are a newbie to Internet or a proud owner of a website, affiliate... Read More

5 Essential Tools of the Successful Affiliate Marketer

In the time I have been running my internet home business I have realized that... Read More

10 Things WalMart Teaches About Affiliate Marketing

We already know about wal mart because of their ads in local papers, on billboards,... Read More

One Little-Known Secret to Wealth the Gurus Never Told You About!

When I started my internet marketing career, I knew that in order to succeed... Read More

How I Started My Own Work At Home Internet Business With Very Little Investment!

Have you always wanted to work at home? Have your own business? Didn't think it... Read More

11 Awesome Ways To increase Your Affiliate Commissions!

Let me ask you a simple question. "Now that you have your own online business... Read More

Free traffic vs. Extra Revenue - Earning From PPC Search Engines

What are the Search Engines?A Search Engine is special database-driven web site designed... Read More

11 Awesome Ways To Explode Your Affiliate Commission

1. Start your own affiliate program directory. Join a large number of affiliate programs that... Read More

Learn How to Improve the Performance of your AdSense Account - Some New Features

Google introduced some new features to AdSense account. When I checked its really useful, So... Read More

The Google Adsense-Adwords Automatic Money Machine

Have you ever tried to make money through affiliate programs using Google Adwords? Then... Read More

The Affiliate Interview - Do You Have What It Takes?

So you have decided to start up your own home business and after hours of... Read More

Affiliate Product Landing Pages - Three Tactics That Sell

As competition within the online affiliate sales arena rises to a fierce boil, affiliate sellers... Read More

How To Create A Lifetime Income With Affiliate Programs By Changing Your Focus!

"How To Create A Lifetime Income With Affiliate Programs By Changing Your Focus!" An... Read More

Affiliate Marketing - A Quick Overview For Beginners

It's simply a kind of marketing in the internet where marketers sell products or... Read More

Affiliating Correctly - Only Work With the Winners

You need to do a bit of research on which affiliate programs you choose to... Read More

Affiliate Alternative; Google Adsense

The Rise and Fall of Affiliate ProgramsAffiliate programs were once a great source of online... Read More

How to Write an Effective Product Review

How do you choose the products you buy? Do you simply accept as gospel truth... Read More

Reselling - Money On The Side

The other night I had dinner with a friend who mentioned knowing quite a few... Read More

Affiliates Go To School!

It has been said that only 2% of affiliate marketers ever make any "real" money... Read More

Writing About How Easy Affiliate Marketing Is, Dont Make It So

It seems that the VERY popular fashion of article writing is not unlike real world... Read More

Generate More Sales in ANY Affiliate Program ? Part Six

ACTIVE AFFILIATES are those who sign up under you for free, then upgrade to being... Read More

5 Magical Steps For Creating A Profitably Potent Affiliate Program!

There are a few reasons why your affiliate program isn't bringing in the traffic and... Read More

Are You Building a Business or a Downline?

A common mistake *A LOT* of affiliates make is to focus too much Energy on... Read More

Back-End Selling

If you ask me, residual (also known as passive income) is the most important type... Read More

How To Earn Residual Income The Lazy Way

I've got a confession to make... what I am about to reveal is the way... Read More

Why Join 2 Tier Affiliate Programs?

Like the more common single tier affiliate programs, 2 tier affiliate programs are a great... Read More

How to Make Your Affiliate Sales Take Off in a Hurry

Affiliate programs are probably the easiest and simplest way to achieve business success online. Indeed... Read More

Preparation - the Way to Success

I have two questions to ask you. One. How much time do you spend ... Read More

Creating an Income Stream with Affiliate Programs

Affiliate programs (also called Referral Programs or Partnership Programs) are essentially commission-based sales schemes. You... Read More

Super Affiliate Strategies To Boost Your Click Through Rates

If you are an affiliate I don't need to tell you that it's not easy,... Read More

Set Up Winning Web Page To Be Powerful Selling Tool - 5 Ways to Help Affiliate Problems

The Internet is powerful selling tool. Never before has been easier to start a business,... Read More