It just got harder to make money on the Internet

September 11th, 2009

According to Wine Industry Insight, wine sites and blogs based in California cannot advertise wine sales sites in the context of commission-based affiliate programs.

It appears, on first glance, that California-based bloggers and site operators would have to pull affiliate ad banners. This would adversely affect web site and blog owners who seek to monetize their content through this route.

It is not clear if this is an absolute, categorical ban or if site operators could acquire an ABC license of some sort.

No details on the ruling or the rationale or precedent behind it yet.

More to come…


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4 Responses to “It just got harder to make money on the Internet”

  1. spiltwine Says:

    Damn those bureaucrats!!

  2. John Kelly Says:

    Hmmm… Does ABC have any jurisdiction outside California?

  3. Dylan Says:

    I don’t see why that would happen. Where’s the motivation to do that?

  4. Ned Says:

    Are you sure you are understanding the ABC correctly? An ad by a retailer is fee based or click based, not commission based. The blogger is not engaged in the direct sale of wine to consumers and using the license of the retailer to do it. That practice is called “third party sales” I believe and the ABC has issued memos
    warning license holders not to engage in it. Were I to offer wines
    for sale that I was getting from a retailer partner, that would seen as a third party sale. Many wine clubs fall into this category too.
    I’m pretty sure that general advertising with no direct sales involvement is not.