I’ve been keeping busy lately with graduate school and a few new products that will launch soon. But that hasn’t kept me from watching the news and reading a few blogs now and then.

A couple news stories in particular have been catching my attention. These stories involve affiliate taxes, Paypal releasing income above $20k to the IRS in 2011, and possible FTC regulations hitting Internet marketers. It’s a sign of the times, perhaps. The recession has stirred up interest in finding additional money for state and federal government use. Maybe it’s not just about the money. The Internet has gone fairly untouched as far as business goes. It was a new technology and medium for commerce to capitalize on. But the show is over. People are making money. It’s become the norm to shop online for just about anything. And so greater regulation and taxation are headed for online business.

This is not a “bitch fest” about having to pay taxes. Even if Paypal doesn’t report my money to the IRS now, I still pay taxes on that income. Why wouldn’t I? It’s just a huge headache waiting to happen for anyone who tries to avoid taxes.

What I want to look at today is something else: offline investments.

I don’t want to stir up any panic, but consider the effect of new taxes/regulation on your business. Are you going to stay afloat? Will it cost you more to stay in business? Now be honest, are all of your sales letters going to pass the ethical marketing standards that might be in place later?

Not that I’m shaking in my boots, but I have always had a firm belief in re-investing profits somewhere else. The dollars I make online go to high-yield savings, mutual funds, offline business ventures, etc. I’m not counting on my Internet business forever. Who knows what can happen in the future. My websites might not be profitable in a year. And I know that I need a safety net.

Maybe you do, too.

What are you doing to ensure your financial security in the face of new taxes and regulation for online marketing? May I suggest looking at education. Heaven forbid, you might need a real job some day. I know, that word scares the hell out of me. But you might not want to discount the possibility. I’m halfway to my master’s degree, and a Ph.D. will probably follow. I hope I don’t have to get a job when I’m finished with school, but I’ll be in a good position to do so. What does your education background look like? Maybe your CV could use a little sprucing up.

Do you have any business aspirations outside of the Internet? I have several. And these plans might materialize in the future. Maybe I’ll own that live music venue, or that college bar I’ve always thought about. Maybe my industrial psychology training will lead to a fruitful consulting career.

What about other investments? I’ve thought about picking up a few rental properties in my part of town. This interest has even gone as far as looking at a couple places. Talking to the agents, looking into the financing and taxes, and checking out the neighborhood demographics. A nice extra income from a few tenants, plus the equity, could be enough to support my family in tough times.

This is all I’m saying: don’t put all your eggs in one basket. Old school, right? Spread out your profits, instead of just blowing them on champagne and bills. Pad yourself now, because nobody knows what the future holds for Internet marketers.

Have a good one,
Reuben D. Rock

  • Share/Bookmark