Over that last weeks I’ve noticed several traffic exchange and viral mailer owners seem to have had their Paypal accounts limited – and I’m curious if anyone out there in marketing land knows more than I do about the reasons. Of course, I have my suspicions as to why Paypal may have limited some of these accounts, but the fact of the matter is I know very little for sure. Of the sites I’ve encountered that have removed Paypal, I haven’t seen any “major edits” to the websites – just the removal of Paypal buttons. Paypal is still mentioned on affiliate pages…hmmmm.
Here’s what I do know:
- Mark Fox’s sites seem to have a limited account, but I can’t be sure. Magical Mailer does not have Paypal as a purchase option anymore, yet Traffic Magician does. Both still show Paypal as the primary option for affiliate cashouts.
- Marcy McManaway’s TESS and PunchCardMailer both have Paypal purchase buttons removed. In fact, for many of the advertising services offered, there are no longer any payment buttons available to members. Not to mention, Marcy’s blog seems to redirect to TESS now. In the spirit of giving credit where it may be due, I do recall an email or few from Marcy McManaway to members, regarding the Paypal removal. Not much detail in those though…
- Debbie Nicholson’s mailers – including Aussie Mailer, RedStagMailer and others – all have had Paypal removed as a purchase option. In a recent Admin email, Debbie mentioned that Paypal is holding her funds for 6 months. Again, not much detail in these admin emails, but it’s a start.
Those are the just the few situations I know of so far…
Of course, like I mentioned above, I have some pretty strong suspicions about why Paypal suddenly “targeted” the TE and mailer industry – and it has little to do with the actual business models of these advertising websites. Rather, a couple of months ago a huge spike in “100% commission” sites came about, along with the “LeasedAdSpace” website, also paying member-to-member with 100% commissions. If you don’t already know, promoting these sorts of “direct 100% commission” programs has always been frowned on by Paypal (you’ll have to trust me on that, or Google the matter for yourself). As it turns out (and as evidenced by the public Member list at LeasedAdSpace), a lot of TE owners ran around promoting the instant commissions sites – in essence putting their affiliate’s earned-but-not-yet-paid commissions at risk. Heck, in the case of LAS, those involved are/were promoting a multi-level instant-pay matrix using Paypal (that’s real bad, btw). Hmmm….again.
Here’s a friendly reminder for online rookies: Paypal does not see as legit – and likely never will – anything that pays direct member-to-member at a rate of 100% as the recent spate of site launches and scripts does. As an affiliate for these such programs, you’re not selling the product as an owner, you’re not supporting it, and in over-simplified terms – you guessed it – Paypal essentially sees such “pay plans” as member-to-member cash-gifting, regardless of any purported product or service attached. (Yes, JVZoo and PaySpree are exceptions – consider them “Paypal vetted” gateways for 100% commissions on definable products – although I don’t really dig Payspree). I’m sure other exceptions exist, but that’s not my main point here, eh.
At the end of the day, two questions to you, the readers:
- Do you know more than I do about Mark, Marcy, and Debbie’s respective sites and/or Paypal limitations?
- Anyone know if additional notable owners have had accounts limited?
- Do you think I’m way off-base on my guess about the link between limitations and owners using their Paypal accounts to promote pay plans of which Paypal doesn’t approve?
Let me know what you know – and remember, you won’t find me “promoting” any kind of 100% member-to-member “programs” or the like – so don’t promote yours in the comments either.
Eager to hear what folks think…