A Tale of Two Companies
“It’s not personal, Sonny. It’s strictly business.”
- Michael Corleone, from The Godfather
“I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.”
- Alan Greenspan
**
Back when this blog started, there was a very simple premise at its core: I loved running, I loved writing, and I enjoyed getting objective feedback about both of those activities. Gradually over the years, things became more complicated; I began recording snapshots of family life, documenting my outdoor adventures, embracing the barefoot running movement, and testing all manner of shoes and outdoor gear.
I also started to make a make a little bit of money for my efforts.
The corporate dance has always been the most awkward aspect of maintaining this website, even as it’s one of the most tangibly rewarding. While my motivation for keeping the site going isn’t necessarily tied to monetization – either through real money or the ever-popular “swag” - I’m the first to admit that it’s a very nice perk. It’s also given me an appreciation for the way various companies do business, and the value they place on relationships with partners - and recently, I’ve had firsthand experience from both extremes of the business relationship spectrum.
At the end of June, the Corleone approach was demonstrated swiftly and mercilessly by Amazon.com, who dropped more than 10,000 California affiliates in response to a new state law that aimed to collect sales tax from the Internet colossus. (When I say swiftly, I mean it: all of the affiliates received e-mails informing us of the termination merely minutes after our Governor signed the law.) It’s a complicated issue that’s likely to play out in court for some time to come, but in the meantime many prognosticators predict that the California law will ultimately backfire, and that Amazon’s actions will cause significant hardship to countless vendors who depend on affiliate revenue to keep their doors open (or their computers charged, as the case may be).
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| The slogan kind of takes on a new meaning now ... |
(UPDATED: it was correctly pointed out in the comments section that the larger villain here is the State of California, who concocted the tax law as a quick money grab without thinking through all of the consequences for either businesses or individuals. Obviously I didn't emphasize that point enough on the first go-round.)
Fortunately, I don’t depend on Amazon to pay the bills – shocking as it may seem, I do actually have a day job – but the operating budget of Running and Rambling will take a noticeable hit, while Amazon will continue to reap the benefits of our former partnership for years to come. I’m afraid to guess the number of product links I’ve embedded to Amazon.com over the years, and I don’t have either the time or motivation to go back and change them to another vendor. Truthfully, Amazon is still a vendor that I use myself and that I’d recommend to others – so I guess I just feel like a girl who thought the relationship meant one thing, only to find out after a surprise breakup that it actually meant something else to the boy. I’m thankful for the time I spent as an Amazon partner, and quite sad that it has to come to an end.
This post isn’t entirely pessimistic, however, because I’m also very lucky to be partnered with some outstanding companies who value relationships as one of their greatest commodities. On that note, there’s no better example of the Greenspan approach to business than the CLIF company, headquartered in Berkeley, CA.
I’ve written at length about how CLIF cherishes their employees and treats both their local and global communities with consideration and respect. They also pride themselves on grassroots outreach, winning customers over one person at a time, and relying on word-of-mouth testimonials to expand their market.
| CLIF love! |
That might explain why I wasn’t entirely shocked to have a giant care package arrive on my doorstep last week, courtesy of the company I’ve partnered with a handful of times over the past two years. Their reps got word that I had a 100-mile race coming up this month, and decided to send a healthy stash of CLIF love to help fuel my adventure on the trails of Lake Tahoe. The delivery came with no strings attached, no promotion to write about, or any expectation of mentioning it on my blog – but obviously, I decided to do it anyway.
Perhaps there will come a time - believe me, the thought has crossed my mind quite a bit over the last several months - when I intentionally separate the business element of this website away from the good-old-fashioned essays and dime store running philosophy that started it all. Until then, I’ll be grateful for the opportunity to associate and collaborate with companies who have widespread positive impact, and who help their partners in ways that result in mutual gain. CLIF is one of those companies for sure, and I hope to do them proud this weekend on the Tahoe Rim Trail.
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13 comments:
Don't you think the greater villain is the state of California? (It wasn't just Amazon that dropped their California affiliates - Backcountry.com did as well)
The state has painted Amazon as the bad guy, meanwhile the City of San Francisco regularly exempts large companies from taxes so that they will stay in the city limits - leaving small businesses with less influence to foot the bill.
The whole Amazon thing really seemed to come out of the blue. Too bad the economy is forcing these type of decisions on behalf of both the state and the companies.
stinks that Amazon choose that route and I hope for all of us that economy turns around. But, on another note that is really cool of Cliff to reach out and hook it up for your 100 miler.
I really like your blog (and book) and thank you for your honest perspective on products and I had the chance to visit Jack's Peak with my gf, amazing place with some awesome and soft trails to run on (took the Merrel Trail Glove out there). Keep up the great blog
mmmm...Blueberry Crisp CLIF Bar is one of my favorites.
Jeff: Yes, definitely - it was a desperate money grab that was poorly thought out and extremely short-sighted. Our state government is a complete circus.
Alex: Thanks for the kind words. Very cool that you were able to enjoy Monterey for a while.
The State and almost all states have been working with internet sellers for over a decade to simplify sales tax collection - a move forced by the big retailers who 'influenced' Congress into protecting the nascent internet sales business. Well, internet sales aren't small potatoes anymore, and yet the big sellers are still fighting to hold onto their subsidy.
You said it well, "I’m also very lucky to be partnered with some outstanding companies who value relationships as one of their greatest commodities." Clearly Amazon isn't one of those companies. They threw you and 10,000 other affiliates under the bus in an impudent display of their power and crassness.
How many billions have they already made in California? Isn't it time that they paid for the roads and airports that are used to deliver they sales? To say nothing of the small, local retailers who were driven out of business or never started because Amazon could over-power them with cheap merchandise made even cheaper by not paying sales tax.
Donald, I too wondered about the direction of your post which seems to compare the evil Amazon vs. Clif Bar & Co. CA seems to be the gorilla in the room in driving out a number of good companies in its zeal to resolve its financial issues.
I hope that Clif Bar & Co will not be one of them.
Richard: Does that mean you're in favor of the new CA law? Amazon has crushed a lot of traditional marketplaces, but it has also supported a huge number of small businesses with online marketplaces ... it's a whole new economy, I guess. You can educate me on all this on the trail someday.
Al: My intent wasn't to pit one company vs another - it was mainly an illustration of the different ways business partners are treated. The CA government is clearly responsible here too, and I updated the post to reflect that.
I've been pretty impressed with Merrell as well. After the Trail Gloves I won here devoloped a hole in the sole, I called Merrell and they offered to upgrade me to the Sonic Glove, which should be tougher, free of charge.
The new CA law is one borne out of frustration and necessity. After years of trying to bring equity to all product sales and no doubt, financial hard times, California and a handful of other states decided that Amazon wasn't ever going to come to the table and collaborate on a fair solution. Read today's paper with excellent quotes from Home Depot, Sears and others about the tax subsidy and helping local governments continue to provide the services vendors and their customers depend on.
My opinion about tax equity doesn't mean I don't enthusiastically support my favorite running (and life) blogger. I just don't understand why they can't value those that bring them the business and pay sales tax. It would still be cheaper than adding buildings and staff. But they're going to fight it by dumping their affiliates (but continuing to benefit from their prior work) and spending millions to put a proposition on the ballot. To me that's greedy and arrogant.
I need to go for a run to settle down.
Yes the Amazon thing was a little rushed wasn't it!
CA State is in a bit of a pickle!
I <3 Cliff though!
I was just in Yosemite, Tahoe and Donner Lake. Can't believe I missed you. I ran a bit but didn't do well at altitude. Swimming at sea level was much more comfortable. Enjoy the blog, sorry about the commercial troubles.
While I think it's improbable that Internet purchases will remain tax-free forever, it's just an obnoxious reminder that nothing is free from control (political rant omitted).
And of course it's the relative freedom of e-commerce that caused it to boom like it did. Too bad.
The same thing happened in Colorado, and although I'm not an affiliate, I know people who were. They were bummed.
Great that Clif is good to work with, they have fine products. The Shot Bloks in particular seem to have taken off (they taste good), and are so much better than liquid goo IMO.
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