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Note changes to the AdSense terms

Some interesting changes here..

         

Jenstar

6:23 am on Oct 2, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Google has made changes to their AdSense terms. Remember, all publishers need to comply with the terms, even when they are changed.

Here is a quick rundown of the more notable changes:

  • Program has changed from "Google AdSense Program" to the "Google AdSense Online Program"
  • Must now be 18 to sign up for AdSense
  • Under Program Policies, they have now added that they can serve "related Google search queries"
  • Under Prohibited Uses they have added "through repeated manual clicks" as one of the things "You shall not, and shall not authorize or encourage any third party to" do.
  • Made some changes to the confidentiality part, removing the part stating that publishers should know some correspondence is confidential, even if it doesn't say so. The part about all statistics remaining confidential still remains in effect.
  • Under no guarantee, they have added "the timing of delivery of such impressions and/or clicks". That is a nice addition, because I am sure AdSense gets plenty of support emails regarding ads that are not targeting properly within the first hour of the code being placed online, and for those days when more PSAs than usual seem to be appearing.
  • In the section on Limitations of Liability; Force Majeure. "In no event shall Google be liable for any act or omission, or any event directly or indirectly resulting from any act or omission of any advertiser or any third parties (if any)" has been removed.
  • Under payment, information about taxes has been added, so I suspect we will be seeing the tax information prompt at login soon. "..including without limitation a valid tax identification number and/or Form W-9 in the case of U.S. taxpayers and a fully-completed Form W-8 in the case of non-U.S. taxpayers."
  • They have removed "(iv) is not false, misleading, defamatory, libelous, slanderous or threatening." from the Representations and Warranties section.
  • They have removed "Any decision made by Google under this Agreement shall be final. Google shall have no liability for any such decision." from the Miscellaneous section.

Some interesting changes, some I am sure for legal reasons, some for tax reasons, and some just for support reasons, so they can refer people to the terms. The related searches addition is an interesting one - I am guessing we will see a new version of the related searches "feature" arrive back on the AdSense scene sooner or later.

We should be seeing some sort of tax information upon login sometime soon, with that addition to the terms.

I am guessing they added those repeated manual clicks to the terms due to all the click happy webmasters and their friends when the program first launched, and thought clicking ads was a great way to make money during the first days.

I also thought it was curious that they removed "is not false, misleading, defamatory, libelous, slanderous or threatening".

Any thoughts on these changes?

kwasher

6:28 pm on Oct 2, 2003 (gmt 0)

10+ Year Member



Great post EFV!

(disclaimer)
Of course, its best to see your own personal tax advisor.
(end of disclaimer)

Hmmm... profit might be the keyword there. Its gonna be a while (in my case for instance) before I see anything I'd call 'profit'. Like a lot of hobby-businesses, the investment is still greater than the profit (as it would be with any hobby).

I guess I was also thinking about that deal where you have to send them (the u.s. gov) a report every four months. As a hobby, I have nothing to report. As a business, I would be reporting 'stuff'... but not profit.

Kind of sucks to have to be a tax expert to run your own little hobby-hopefully-turned-business. I think Im gonna vote libertarian (the third largest party in the U.S., but doesnt seem to get much press coverage) from now on (smile).

NeedScripts

6:44 pm on Oct 2, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Under Program Policies, they have now added that they can serve "related Google search queries"

Not sure.. but if I had the final say so for the site I am working.. Removing AdSense from our site would be one of the first thing I would do.. Cuz it is nonsense to show adsense code with "related search queries"... it is like shooting your own foot.. and promoting your competitors by google results.

P.S.. I believe they might add "related search queries" as default.. but will leave an option for publishsers to remove it too.. so they can maintain good relationship with publishers too.. as serving only advertisers or self purpose.. might not be very good for their reputation.

my 2cents

NS

kwasher

7:17 pm on Oct 2, 2003 (gmt 0)

10+ Year Member



Hmmmm. I have to agree. Its hard enough to keep track of ads you dont want on your site, a search could yield tons of results. I wonder what they have in mind....

Sense_able

8:09 pm on Oct 2, 2003 (gmt 0)

10+ Year Member



Kind of sucks to have to be a tax expert to run your own little hobby-hopefully-turned-business.

It is so annoying that just a couple of Mb of code can cause so many headaches. I suppose that we have the ultimate power. Hit the delete key.

I have always looked upon the sucess of my site as how many dollars a month I brought in. I supose it is time to start looking at the logs again and patting myself on the back when my stats go up another 10k instead of my revenue. Oh if I could only go back to the days of tripod and getting happy at 50c a day.

There is no real secrecy in most maildrops. Why bother with (apparent) fraud when a proper company setup can have minimal tax if done carefully (even in the UK) and would build you a business you can sell later?

You need to have maildrops when you are getting reasonably well known otherwise a million people can do a whois and call round for afternoon tea

robho

8:34 pm on Oct 2, 2003 (gmt 0)

10+ Year Member



You need to have maildrops when you are getting reasonably well known otherwise a million people can do a whois and call round for afternoon tea

Didn't say it wasn't a good idea to have a maildrop for a small extra layer of privacy (whether personal or business), just pointing out that it's fairly useless hiding from the taxman via one, especially if it is in the same country as you. (although other than the usual spam domain "renewal invoices" I've never had anybody contact me via the whois info).

To get back the new terms and conditions, I agree with some others that putting related searches on the page would make me (reluctantly) drop Adsense also. Perhaps that is the idea - to introduce them when there are too many publishers...

Sense_able

10:01 pm on Oct 2, 2003 (gmt 0)

10+ Year Member



I was disappointed to see the related links when they appeared last time. However it is in all of our favour to promote the site that feeds us.

IMHO it could help with the circular flow of traffic therefore promoting Adwords which in turn increases revenue.

div01

5:03 am on Oct 3, 2003 (gmt 0)

10+ Year Member



However it is in all of our favour to promote the site that feeds us.

I don't quite get what you mean here. Are you assuming that the traffic is coming from Google and is being circulated back?

Blue_Fin

5:15 am on Oct 3, 2003 (gmt 0)

10+ Year Member



While I don't agree with his reasoning, I think what he means is that Google is feeding us by allowing us to place THEIR ADVERTISERS' ads on our websites and share in the revenue Google receives from those advertisers.

buckworks

5:23 am on Oct 3, 2003 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



assuming that you've kept decent records of your business income and expenses.

Keeping good records is critical. A tax auditor once told me that the most common reason for disallowing "business" deductions was not any question that the expenses were legitimate, rather that they weren't adequately documented.

Save those receipts!

quotations

5:28 am on Oct 3, 2003 (gmt 0)

10+ Year Member



>As a hobby, I have nothing to report.
>As a business, I would be reporting 'stuff'... but not profit.

This is not strictly true.

I believe that if you check this with a real tax expert and actually follow the rules, you will discover that in the US,

1. All of the revenue must be declared as income (regardless of whether it is a hobby or a business.)

2. If it is a hobby, none of the expenses may be deducted from income (this makes all of the revenue ordinary income which is all taxed.)

3. If it is a business, most but not necessarily all of the expenses may be deducted from the revenue to arrive at the net income and that is what would then be taxed.

4. If your "business" does not make a net profit after a certain amount of time (perhaps 3 out of 5 years) it may be declared by the IRS to be a hobby and all deductions from the previous years may be disallowed and the entire amount of the revenue may be taxed retroactively.

danny

7:01 am on Oct 3, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Does anyone in Australia have any advice for a hobbyist who's about to start making money from his hobby? Can I just add up income, subtract expenses, and put the resulting number under "Other Income" on my tax form? I've always done my own tax before, and I'd rather not have to get a tax advisor...

netnerd

7:41 am on Oct 3, 2003 (gmt 0)

10+ Year Member



I have been made an offer on a % of advertiser spend for cost per click advertising on my site.

E.G. I get x cents out of the y cents the advertiser pays the PPC agency every time i send a click from my site.

Does anyone in here know what (as an estimated %) the likes of google adsense, and espotting pay?

WebWalla

8:01 am on Oct 3, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Does anyone in here know what (as an estimated %) the likes of google adsense, and espotting pay?

Espotting will often make out individual contracts with the site concerned and thus the % may change, but I would expect around 35%. Reagrding AdSense, many here have tried analysing the stats to reach the conclusion that G is paying 50-60%.

Sense_able

8:07 am on Oct 3, 2003 (gmt 0)

10+ Year Member



I don't quite get what you mean here. Are you assuming that the traffic is coming from Google and is being circulated back?

What I meant was that we are being paid by google. Adsense is the biggest thing to hit the internet since $6cpm so I am with them all the way.....

60% of my traffic comes from google and the more people who use google the better for me. If I in turn can promote google then that is to my advantage.

Say a visitor comes to my site from yahoo and exits my site to google. He then finds that google is less cluttered and better than yahoo then there is another google user. That new google user could return one day.

In a way it is creating a circular flow of traffic......

netnerd

8:22 am on Oct 3, 2003 (gmt 0)

10+ Year Member



Thanks WebWalla.

kwasher

12:29 pm on Oct 3, 2003 (gmt 0)

10+ Year Member



This is not strictly true. I believe that if you check this with a real tax expert(more)

Wow. I've always seemed to have a mental block when it comes to taxes, probably due to my first experience looking at all those forms. Your message is a wake up call... its time to get some serious paid help or join a micro-credit/business group (business owners helping each other). I hope its tax deductible.

As for adsense, has the related search already started? I don't see any indication on my sites' ads this morning... or is this a thing that happens after an ad is clicked (I wasnt with adsense the last time related search was in town). I should probably go back and reread this thread from the start again... I better get some coffee.

Jenstar

1:14 pm on Oct 3, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Related searches was tried out for about 12 hours at the beginning of August - Google pulled it because of the negative feedback from publishers. At the time, GoogleGuy said:

A number of AdSense publishers did express concern about the related searches feature. As a result of this feedback, we decided to temporarily disable this feature. We will soon re-release this feature with greater flexibility for the publishers. I don't know if this will be opt-in or opt-out, but I believe publishers will be able to turn off the feature if they don't want to use it.
[webmasterworld.com...]

So it was known that the related searches would be re-introduced to AdSense, just not when and how.

NeedScripts

1:38 pm on Oct 3, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



So it was known that the related searches would be re-introduced to AdSense, just not when and how.

And hopefully with an opt-out option where if publishers don't want to show "related searches" then they won't have to. :)

NS

div01

1:51 pm on Oct 3, 2003 (gmt 0)

10+ Year Member



Sense_able,

I think it is flawed to assume that every website gets 60, 70, 80, etc percent of its traffic from Google. Lets take the case where sites have worked to get to a point where the majority of their visitors are non-Google referred. By adding the "related searches" link, Google is trying to wean away these users from other search engines to its own. So if you get a lot of searches from non-Google SEs, it is possible that you might be losing some of these visitors in the future - ie, if they decide to move over to Google.

I know webmasters are making a lot from Adesene...but if I were to guess, I'd say that Google is raking it in aswell. A mutually beneficial relationship where nothing is 'owed'.

dillonstars

11:44 am on Oct 8, 2003 (gmt 0)

10+ Year Member



On the tax issue, I was just skimming through the updated FAQ and found this on tax:

Bold bits by me.

5. Does Google need my tax I.D.?

Yes. If you are approved to participate in Google AdSense and you file taxes in the US, we are required to collect your tax I.D. or, if you don't have a tax I.D., your Social Security number. The ability to collect your tax I.D. is coming soon. When we launch this feature, you'll be prompted to submit your tax I.D. when you log in to your account. If you do not file taxes in the US, you won't need to provide us with any specific tax information.

Google uses industry-standard SSL (secure socket layer) technology to protect this and other personal information you provide us. Please read the Google Privacy Policy for more information about what we do to protect your privacy

Jenstar

5:05 pm on Oct 8, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



On the tax issue, the terms are more up to date (October 1, 2003) than the FAQ (August 20, 2003).

valid tax identification number and/or Form W-9 in the case of U.S. taxpayers and a fully-completed Form W-8 in the case of non-U.S. taxpayers

is what the terms say, so I would take that as the most current and up-to-date information on tax information with regards to non-US taxpayers.

junaidkhan

12:58 pm on Oct 10, 2003 (gmt 0)

10+ Year Member



Here is a Situation.

what if somebody have given address of his/her friend in the US due to payment convenience, he/she put it in bank there then sends money via wire when the checks clears.

what could be done to avoid any tax related complication.

is there any thing for in W8 form in this regard.

or simply to give Home address to avoid this issue.

401khelp

4:35 am on Oct 11, 2003 (gmt 0)

10+ Year Member



what could be done to avoid any tax related complication.

Nothing. You are going to have to give Google tax reporting information or, I suspect, be kicked out of the program. The U.S. Government simply will not allow Google to make disbursement to anyone without them being reported to the IRS -- and that reporting MUST contain the proper indentification (a tax payer indentification number in the case of us in the US). Google will be fined if they don't provide the information.

Having the funds sent to someone in the US is not going to work. You have to file a W-9 or W-8. Address has no impact on it.

ahsanshami

5:57 am on Oct 11, 2003 (gmt 0)

10+ Year Member



Junaid -- I think it depends on where you deposit the funds. If it's in the US and it's an account with your name and you're not liable to pay US tax, then you'll need the w-8 and all will be well.

If the cheque's in your US friend/relative's name and they do pay US tax, then you'll need their SSN of Tax ID and they'll have to pay tax on this income, because it's technically their income, not yours.

At least, that's how I've understood it to work.

junaidkhan

8:04 am on Oct 11, 2003 (gmt 0)

10+ Year Member



actually its not my account.
now please guide me, what if i change my address now would still there be a problem for me or google. as i have got payments from google previously.

or should i get my bank account opened there (can i do that sitting in another country.) and simply fill the W8 form.

junaidkhan

9:41 am on Oct 11, 2003 (gmt 0)

10+ Year Member



>Junaid -- I think it depends on where you deposit the >funds. If it's in the US and it's an account with your >name and you're not liable to pay US tax, then you'll >need the w-8 and all will be well.
>If the cheque's in your US friend/relative's name and >they do pay US tax, then you'll need their SSN of Tax ID >and they'll have to pay tax on this income, because it's >technically their income, not yours.
>At least, that's how I've understood it to work.

Actually i m not sure My Friend has that Tax id, and the only reason for which i did that was Just Payment convenience as people didnt get cheques here even weeks after i got money transferred here through bank.

i am willing to pay tax if it is required by US govt as dont want to cause trouble to my friend or google. but question is how?

now issue is what should i do for the FUTURE.
should i change the address or open a account in my name in US ..and if i do it will i still be required to submit info on payments i received before in US.

as far as W8 is concerned everything just went above my head. i guess would have to read it more carefully.

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