Quote:
Originally Posted by CWatkinsNash
I've been thinking, and this just occurred to me:
In the US, payments from product consignments don't require 1099s (reported payments), but that refers to merchandise, NOT services.
Digital goods sales usually are handled as a service rather than a product.
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Maybe that's it. Note that when I was dealing with BookBaby they had no direct sales as part to their offering (and what they have now is not quite the same thing either, AFAICT). So they only acted as an intermediary for distribution. Although why (re)distribution of digital products should be treated as merchandise while retail sales of the same thing should be a service (if that's what is happening) remains an odd technicality - and suggests than anyone can sidestep the law in this case by simply having one company to act as the distributor and the other to act as the retail outlet.