The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect either a) signs the contract, or b) completes the purchase.

On behalf of Tax Executives Institute, I am writing to voice the Institute's opposition to proposed regulations on "Procurement Methods: Contract Terms and Conditions: Use of Affiliates to Avoid Taxation on Income from State Contracts," which were issued this summer by the Board of Public Works and published in the Maryland Register on August 29, 1997.
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