Super affiliate FatWallet.com moved from Illinois to Wisconsin a couple months ago after Illinois Governor Quinn signed HB 3659 into law, which made it impossible for the company to continue doing business in the state.
The law would have caused the popular coupon site to lose about 30% of its revenues.
So CEO Tim Storm picked up and moved his operation and dozens of employees to Wisconsin, where they were welcomed with open arms.
Fox Business News provided live coverage of the move 5 miles north across the state border on April 8, 2011.
FatWallet.com created a documentary to capture that day, the people that were affected, and the success of a great workplace culture coming together in crisis.
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Hi John -
I moved to Austin.
Excellent post and very interesting video. The situation made me think back to the original “Tea Party” situation.
It seems like similar laws could have devastating effects on internet marketing in general. The story peaks my interest on two levels as I’m both an internet marketer and an attorney.
You said you recently moved to Texas. I also live in Texas, what city did you move to?
Great thought provoking post. Thanks.
John
It’s certainly not optimal to have to move to other states, but the current administration in WI is business friendly and vows not to pass a similar tax.
But you never know what happens with the next Governor.
I love this story and give them huge kudos for doing this, however aren’t they just putting off the inevitable? The Governor probably headed next door to talk to another business about getting the tax added to Wisc. (I truly hope this is a joke). I simply think this is a force that needs to be dealt with in e-commerce and the resources need to be in developing a strategy on becoming as profitable after the tax is in play. But, I love the attitude and hope it stays away from us in Kansas.
The states seem to be oblivious to the collateral damage they create with these laws.
Since affiliates can often live anywhere, I wouldn’t be surprised to see more migrate to more business friendly states with no state income tax. I moved form NJ to TX 6 months ago, and that was certainly one of the factors.
Great story on how to beat back the hypocritical “state”. Illinois wants and needs business and the revenues from taxing citizens who are employed and all that they consume yet they make the conditions restrictive forcing a great innovative firm to move across the border. It doesn’t make sense. Obviously smaller affiliate type businesses in state cannot afford to move so they just get screwed. Sort of leaves a bad taste in your mouth and serves as an example of what is happening all over the country as states and counties financially dry up due to this economic depression and try to suck life blood from any viable host it can sink it’s fangs into. I thought it amusing that employees painted a beach type mural as I live in Florida a state with no personal income tax and a very pro business governer now. So anyone else in the same predicament check out Florida where the beaches are real and less than an hours drive from any spot in the state!
It’s good to see that although this is an unfortunate situation, FatWallet and its employees are making the most of it. Affiliate marketing is all about adapting to quick changes/trends, and this shows the resiliency of those in our industry. I wish the best of luck to FatWallet in the future.
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