Webdesign business model: hostgator reselling or hostgator affiliation?

25 replies
Hi everyone,
I'm into the web-design and lead generation market.
What I do is finding local businesses that don't have a website (or have an old one which is not bringing them customers) and re-design them + adding SEO services, PPC campaigns, advertising, social media marketing, etc..

Some days ago I read a very interesting post on WF about a guy who was getting commission from the hostgator affiliation system ( Web Hosting Affiliate Program - HostGator ).

Under that post there were others who was answering him that it was better to get directly money per month by using reselling account such as the "Alluminium plan" and so on.

I was planning to charge (for the next customers):
- 500$ for webdesign
Plus
- 50$/month for : SEO, online advertising (facebook campaigns+google adwords) ,
unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc..

My questions are :

1- Which one of the 2 plans do you think is the best? Reselling or affiliate commission?

2- What about if I already took 500$ (euro actually) for a website development and told him that it comprehended 1 year hosting? (my plan was to give a part back and let him register under my reselling account, or just get the affiliation part).

3- Am I forced to have a website to resell the web-hosting plans if I go through reselling?And can I choose to set my own prices?

4- What about these customers who don't know how to handle registration or credit card payments and just would like to give me the moneys "by hand" in cashes?(yeah, in Italy there are a lot of ignorants). Can I register myself under their names and getting the commission?What should I do in this case if I choose reselling?

5- Is there any better reselling plan?What about godaddy?

6- What do you think about my price?

In my case the hosting price should be comprehended or not in your opinion?
If yes, should they handle it and remember to pay me every month/year?Or should I "handle their moneys"?


Thank you in advance for the answers.
You can't even imagine how am I grateful of the advices that I get from this forum and how am I happy to give some when it's possible.
I really love this community and the great minds that float around .
Andrea
#affiliation #business #hostgator #model #reselling #webdesign
  • Profile picture of the author savidge4
    dude,

    the REAL answer is both. just because the customer is not paying for the hosting doesn't mean its NOT getting paid for. Get the Hosing affiliate set up. Use YOUR card every time you set up a new account. You get the monthly stream and the 1 time payoff. < shakes head >

    Originally Posted by Terminator3018 View Post

    Hi everyone,
    I'm into the web-design and lead generation market.
    What I do is finding local businesses that don't have a website (or have an old one which is not bringing them customers) and re-design them + adding SEO services, PPC campaigns, advertising, social media marketing, etc..

    Some days ago I read a very interesting post on WF about a guy who was getting commission from the hostgator affiliation system ( Web Hosting Affiliate Program - HostGator ).

    Under that post there were others who was answering him that it was better to get directly money per month by using reselling account such as the "Alluminium plan" and so on.

    I was planning to charge (for the next customers):
    - 500$ for webdesign
    Plus
    - 50$/month for : SEO, online advertising (facebook campaigns+google adwords) ,
    unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc..

    My questions are :

    1- Which one of the 2 plans do you think is the best? Reselling or affiliate commission?

    2- What about if I already took 500$ (euro actually) for a website development and told him that it comprehended 1 year hosting? (my plan was to give a part back and let him register under my reselling account, or just get the affiliation part).

    3- Am I forced to have a website to resell the web-hosting plans if I go through reselling?And can I choose to set my own prices?

    4- What about these customers who don't know how to handle registration or credit card payments and just would like to give me the moneys "by hand" in cashes?(yeah, in Italy there are a lot of ignorants). Can I register myself under their names and getting the commission?What should I do in this case if I choose reselling?

    5- Is there any better reselling plan?What about godaddy?

    6- What do you think about my price?

    In my case the hosting price should be comprehended or not in your opinion?
    If yes, should they handle it and remember to pay me every month/year?Or should I "handle their moneys"?


    Thank you in advance for the answers.
    You can't even imagine how am I grateful of the advices that I get from this forum and how am I happy to give some when it's possible.
    I really love this community and the great minds that float around .
    Andrea
    Signature
    Success is an ACT not an idea
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    • Profile picture of the author Andrea Rillo
      Originally Posted by savidge4 View Post

      dude,

      the REAL answer is both. just because the customer is not paying for the hosting doesn't mean its NOT getting paid for. Get the Hosing affiliate set up. Use YOUR card every time you set up a new account. You get the monthly stream and the 1 time payoff. < shakes head >
      But wouldn't hostgator get suspicious if I use my own cards everytime I set up a new account? It would sounds like a scam to them even if it is not. Am I right? Plus the ip would always be the same for every new registrant. Could you explain in detail?
      I really appreciate your help anyway. Thank you
      {{ DiscussionBoard.errors[9539194].message }}
      • Profile picture of the author savidge4
        [DELETED]
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        • Profile picture of the author Andrea Rillo
          "just because the customer is not paying for the hosting doesn't mean its NOT getting paid for. Get the Hosing affiliate set up. Use YOUR card every time you set up a new account. You get the monthly stream and the 1 time payoff.".

          That doesn't make any sense. Hostgator would ban me istantly if I do like that.

          I can't make 20 accounts on hostgator all paid by me and get 100$ from each one just because I ordered a 12 months package.

          If that was true it means that I would be able to create even 5000 registrations and get instantly 500k$ while spending only the half (since a one year membership is only 60$).

          Regards
          Andrea
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  • Profile picture of the author yukon
    Banned
    Originally Posted by Terminator3018 View Post

    - 50$/month for : SEO, online advertising (facebook campaigns+google adwords) ,
    unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc..
    No way your going to do any/all of that for $50 a month & make a profit.
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    • Profile picture of the author Andrea Rillo
      Originally Posted by yukon View Post

      No way your going to do any/all of that for $50 a month & make a profit.
      Actually I already am. Why shouldn't I make any profit?
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      • Profile picture of the author savidge4
        Originally Posted by Terminator3018 View Post

        Actually I already am. Why shouldn't I make any profit?
        Making money and making profit are 2 different things. How much time do you have invested on a monthly basis per customer for ", online advertising (facebook campaigns+google adwords) ,unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc.."?
        Signature
        Success is an ACT not an idea
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        • Profile picture of the author Andrea Rillo
          Originally Posted by savidge4 View Post

          Making money and making profit are 2 different things. How much time do you have invested on a monthly basis per customer for ", online advertising (facebook campaigns+google adwords) ,unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc.."?
          It really depends on the needs of the customer. I guess about 3-4 hours in the best case. Do you think I'm offering too much? I had this tought too.
          Thanks again for your answer.
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          • Profile picture of the author savidge4
            Originally Posted by Terminator3018 View Post

            It really depends on the needs of the customer. I guess about 3-4 hours in the best case. Do you think I'm offering too much? I had this tought too.
            Thanks again for your answer.
            So you are saying "Best Case" you are making $12 an hour. what's the worst case? 10 hours, or $5.00 an hour? What's your average case scenario? $8.00?

            In the USA... $8.00 an hour = walmart. Again Making money and making profit are 2 different things. You are working for PEANUTS.

            But lets go even further with this.. you are in Italy right? so $50 is actually 50 Euros correct? that translates to what $38.00 USD? So breaking out "worst Case" you are looking at $3.80 USD AN HOUR.

            You would basically be making more money doing gigs on fiverr

            From a more individual growth point of view... you have personal money issues, and THAT is holding you back.
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            • Profile picture of the author Andrea Rillo
              Originally Posted by origin View Post

              I would go with the reseller option. You make money on the hosting for the life of the website and not just the once off aff commission.

              You get paid once $100 coms where as if you charge them $100 per year yourself you get $100 x 5 (most business last 5 years or less).

              How you include that $100 is up to you, if you want to make it part of your $50 pm package then that is OK.

              But if you are a web designer I will go with reseller package and make money over the life of the website.

              (You will find in any case when the client's emails "are not working" they are going to contact you, so you may as well have reseller hosting rather than just the once off affiliate sale)
              That's right! But what I'm not understanding is, what's the advantage of having a reseller package instead of just letting them signup themselves and getting my affiliation part?(plus the 50$ monthly?). Thank you again for your advice.

              Originally Posted by savidge4 View Post

              So you are saying "Best Case" you are making $12 an hour. what's the worst case? 10 hours, or $5.00 an hour? What's your average case scenario? $8.00?

              In the USA... $8.00 an hour = walmart. Again Making money and making profit are 2 different things. You are working for PEANUTS.

              But lets go even further with this.. you are in Italy right? so $50 is actually 50 Euros correct? that translates to what $38.00 USD? So breaking out "worst Case" you are looking at $3.80 USD AN HOUR.

              You would basically be making more money doing gigs on fiverr

              From a more individual growth point of view... you have personal money issues, and THAT is holding you back.
              You are absolutely right. If it was possible I would have hit the thanks button like 10 times. That's correct and you are opening my eyes. What do you think about this package instead of the other one that I had?
              For 50$/mo :
              - Monthly backups of database+files
              - Unlimited changes to gallery,etc. upon request
              - Handling their marketing pages (facebook pages) and sending 2-3 emails a month to all the subscribers.
              - Fixing problems immediately in case of servers/website issues. (happen rarely).

              I really appreciate your help. You are a really good person. (Sorry if my english is not perfect but I am not english-native speaker).
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              • Profile picture of the author origin
                Originally Posted by Terminator3018 View Post

                That's right! But what I'm not understanding is, what's the advantage of having a reseller package instead of just letting them signup themselves and getting my affiliation part?(plus the 50$ monthly?). Thank you again for your advice.
                Here is the difference for me. Should they stop needing my "social marketing" or my "seo" or my "newsletter" service and they cancel the package, they still have to have hosting to keep the website / emails going.

                So I would separate the hosting part in the invoice and make sure that if they cancel all the other services (and they do cancel from time to time) that you still have the hosting.

                If someone else is going to come along at some point and sell them a "better" marketing offer and they are going to cancel yours, then you still have the hosting.

                The hosting is the core of what I sell. The other services are cherries on top. Your client can do without all the "extras" but they cannot do without the emails / domain / website.
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      • Profile picture of the author yukon
        Banned
        Originally Posted by Terminator3018 View Post

        Actually I already am. Why shouldn't I make any profit?
        So your ranking pages (SEO) for $50 a month & making a profit? No expenses, nothing?
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        • Profile picture of the author Andrea Rillo
          Originally Posted by yukon View Post

          So your ranking pages (SEO) for $50 a month & making a profit? No expenses, nothing?
          You are right, I read about that and tought about it in the previous post so I made changes to the plan that I am offering .
          For 50$/mo I'm doing :
          - Monthly backups of database+files
          - Unlimited changes to gallery,etc. upon request
          - Handling their marketing pages (facebook pages) and sending 2-3 emails a month to all the subscribers.
          - Fixing problems immediately in case of servers/website issues. (happen rarely).
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  • Profile picture of the author origin
    I would go with the reseller option. You make money on the hosting for the life of the website and not just the once off aff commission.

    You get paid once $100 coms where as if you charge them $100 per year yourself you get $100 x 5 (most business last 5 years or less).

    How you include that $100 is up to you, if you want to make it part of your $50 pm package then that is OK.

    But if you are a web designer I will go with reseller package and make money over the life of the website.

    (You will find in any case when the client's emails "are not working" they are going to contact you, so you may as well have reseller hosting rather than just the once off affiliate sale)
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  • Profile picture of the author Joe Mobley
    Look for my responses in your quote below. Note that I am responding on a tablet so some of the text may get jumbled.

    Understand is that these are my opinions only!



    Originally Posted by Terminator3018 View Post

    Hi everyone,
    I'm 2 the web-design and lead generation market.
    What I do is finding local businesses that don't have a website (or have an old one which is not bringing them customers) and re-design them + adding SEO services, PPC campaigns, advertising, social media marketing, etc..

    Some days ago I read a very interesting post on WF about a guy who was getting commission from the hostgator affiliation system ( Web Hosting Affiliate Program - HostGator ).

    Under that post there were others who was answering him that it was better to get directly money per month by using reselling account such as the "Alluminium plan" and so on.

    I was planning to charge (for the next customers):
    - 500$ for webdesign
    Plus
    - 50$/month for : SEO, online advertising (facebook campaigns+google adwords) ,
    unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc..

    ************************************
    The unlimited changes policy will be fatal to your business. My policy is to allow two changes per month and there are guidelines on those changes.

    $50 is a bit low for what you offering.
    *******************************************


    My questions are :

    1- Which one of the 2 plans do you think is the best? Reselling or affiliate commission?

    ********************************
    As mentioned above both models work. Also, you are not restricted to only one option. However, if you are looking to build a passive income stream, monthly hosting is a wonderful thing. Also, receiving monthly hosting payments will bring more money into your business.

    ********************************

    2- What about if I already took 500$ (euro actually) for a website development and told him that it comprehended 1 year hosting? (my plan was to give a part back and let him register under my reselling account, or just get the affiliation part).

    *************************
    I'm getting the idea that you may not fully comprehend the reseller hosting concept. It offers a huge range of flexibility with your clients.

    Your clients do not really register under your account. Rather, you add them to your reseller account.
    ********************************

    3- Am I forced to have a website to resell the web-hosting plans if I go through reselling?
    ***************
    Nope.
    ***************

    And can I choose to set my own prices?
    ***************
    Yep. And you keep ALL!!! of the money.
    ***************

    4- What about these customers who don't know how to handle registration or credit card payments and just would like to give me the moneys "by hand" in cashes?

    *****************
    I would resist this as a business model. It is a huge pain in the ass to chase people around for $50. If they have bought anything online they should be able to do this fairly easily.
    *****************

    (yeah, in Italy there are a lot of ignorants). Can I register myself under their names and getting the commission?What should I do in this case if I choose reselling?

    ******************
    Again, you are not understanding how the reseller model works.
    ******************

    5- Is there any better reselling plan?What about godaddy?
    ********************
    I have a personal aversion to GoDaddy. But that's just my opinion.
    ********************

    6- What do you think about my price?

    In my case the hosting price should be comprehended or not in your opinion?
    If yes, should they handle it and remember to pay me every month/year?Or should I "handle their moneys"?
    *************************
    You will become little more than a money collection agent if you leave it up to them.

    PayPal subscription link ---> email -> done!
    *********************


    Thank you in advance for the answers.
    You can't even imagine how am I grateful of the advices that I get from this forum and how am I happy to give some when it's possible.
    I really love this community and the great minds that float around .
    Andrea
    Good luck.

    Joe Mobley
    Signature

    .

    Follow Me on Twitter: @daVinciJoe
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    • Profile picture of the author Andrea Rillo
      Originally Posted by origin View Post

      Here is the difference for me. Should they stop needing my "social marketing" or my "seo" or my "newsletter" service and they cancel the package, they still have to have hosting to keep the website / emails going.

      So I would separate the hosting part in the invoice and make sure that if they cancel all the other services (and they do cancel from time to time) that you still have the hosting.

      If someone else is going to come along at some point and sell them a "better" marketing offer and they are going to cancel yours, then you still have the hosting.

      The hosting is the core of what I sell. The other services are cherries on top. Your client can do without all the "extras" but they cannot do without the emails / domain / website.
      So you think that I should develop a website for my web-design/hosting/web marketing business?
      Thank you in advance.

      Originally Posted by Joe Mobley View Post

      Look for my responses in your quote below. Note that I am responding on a tablet so some of the text may get jumbled.

      Understand is that these are my opinions only!





      Good luck.

      Joe Mobley
      Thank you for the great advices! I really appreciate them.
      {{ DiscussionBoard.errors[9543362].message }}
      • Profile picture of the author origin
        Originally Posted by Terminator3018 View Post

        So you think that I should develop a website for my web-design/hosting/web marketing business?
        Thank you in advance.
        yes, you should have a website where you advertise your products and services
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  • Profile picture of the author iAmNameLess
    Originally Posted by Terminator3018 View Post

    Hi everyone,
    I'm into the web-design and lead generation market.
    What I do is finding local businesses that don't have a website (or have an old one which is not bringing them customers) and re-design them + adding SEO services, PPC campaigns, advertising, social media marketing, etc..

    Some days ago I read a very interesting post on WF about a guy who was getting commission from the hostgator affiliation system ( Web Hosting Affiliate Program - HostGator ).

    Under that post there were others who was answering him that it was better to get directly money per month by using reselling account such as the "Alluminium plan" and so on.

    I was planning to charge (for the next customers):
    - 500$ for webdesign
    Plus
    - 50$/month for : SEO, online advertising (facebook campaigns+google adwords) ,
    unlimited changes, possibility to call me whenever they want, flyers(just some) ,social media marketing, email advertising management, etc..

    My questions are :

    1- Which one of the 2 plans do you think is the best? Reselling or affiliate commission?

    2- What about if I already took 500$ (euro actually) for a website development and told him that it comprehended 1 year hosting? (my plan was to give a part back and let him register under my reselling account, or just get the affiliation part).

    3- Am I forced to have a website to resell the web-hosting plans if I go through reselling?And can I choose to set my own prices?

    4- What about these customers who don't know how to handle registration or credit card payments and just would like to give me the moneys "by hand" in cashes?(yeah, in Italy there are a lot of ignorants). Can I register myself under their names and getting the commission?What should I do in this case if I choose reselling?

    5- Is there any better reselling plan?What about godaddy?

    6- What do you think about my price?

    In my case the hosting price should be comprehended or not in your opinion?
    If yes, should they handle it and remember to pay me every month/year?Or should I "handle their moneys"?


    Thank you in advance for the answers.
    You can't even imagine how am I grateful of the advices that I get from this forum and how am I happy to give some when it's possible.
    I really love this community and the great minds that float around .
    Andrea
    1.) Reselling is better. I've done both and the reselling hosting instead of having them sign up through an affiliate link is much better. On business/web/marketing related blogs I have, I always have an affiliate link because I get traffic that won't even use my services but they may sign up through the link. If you have someone that requires their own hosting account through a 3rd party then send them the link. Which one is better for you? Would you rather make $50 in one payment or $50 each and every month?

    2.) A reseller account allows you to create accounts on your own account. He doesn't pay hostgator, he pays you. You are the one that pays hostgator or whichever hosting company you plan to have a reseller through.

    3.) You need to have a reseller account. I think it's 24.99 starting out, and you will add customer accounts. You charge whatever you want, they don't pay through the hosting company, they pay you. You pay for your reseller account whether you have clients or not.

    4.) Like I said above... they pay you. Could be cash, credit, check, bitcoin, whatever you want. I don't think you really understand how reseller accounts work. It is essentially a shared hosting account, but you have the ability to create a full account with however much disk space, bandwidth, etc as well as having their own cpanel. They never pay the hosting company directly, they always pay you unless they go through an affiliate link.

    5.) GoDaddy sucks.

    6.) Your price for web design is okay for starting out. Could be more, but you'll end up raising the prices in time. As for your $50/mo fee you're offering way too much, you can't make a profit with that. For $50/mo include the hosting, as well as any content changes, security upgrades, file and database backups. Offering SEO and the other stuff included in $50/mo is ripping yourself off and probably lowering the average lifetime of a customer. Average time for a customer to cancel with an SEO company is 3-4 months... hosting, many companies stay with the same one for years.
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    • Profile picture of the author Andrea Rillo
      Originally Posted by iAmNameLess View Post

      1.) Reselling is better. I've done both and the reselling hosting instead of having them sign up through an affiliate link is much better. On business/web/marketing related blogs I have, I always have an affiliate link because I get traffic that won't even use my services but they may sign up through the link. If you have someone that requires their own hosting account through a 3rd party then send them the link. Which one is better for you? Would you rather make $50 in one payment or $50 each and every month?

      2.) A reseller account allows you to create accounts on your own account. He doesn't pay hostgator, he pays you. You are the one that pays hostgator or whichever hosting company you plan to have a reseller through.

      3.) You need to have a reseller account. I think it's 24.99 starting out, and you will add customer accounts. You charge whatever you want, they don't pay through the hosting company, they pay you. You pay for your reseller account whether you have clients or not.

      4.) Like I said above... they pay you. Could be cash, credit, check, bitcoin, whatever you want. I don't think you really understand how reseller accounts work. It is essentially a shared hosting account, but you have the ability to create a full account with however much disk space, bandwidth, etc as well as having their own cpanel. They never pay the hosting company directly, they always pay you unless they go through an affiliate link.

      5.) GoDaddy sucks.

      6.) Your price for web design is okay for starting out. Could be more, but you'll end up raising the prices in time. As for your $50/mo fee you're offering way too much, you can't make a profit with that. For $50/mo include the hosting, as well as any content changes, security upgrades, file and database backups. Offering SEO and the other stuff included in $50/mo is ripping yourself off and probably lowering the average lifetime of a customer. Average time for a customer to cancel with an SEO company is 3-4 months... hosting, many companies stay with the same one for years.
      Thank you for all these precious information. You are a GREAT person and you are helping me out alot. I really completely appreciate it.

      I have just one question more to disturb you with which is : Do you let them pay something for the set-up/initial cost? Like 700$ initial setup +50$ monthly? Or you go directly with 50$ monthly?(obviously 700$ it's just an example because it depends on the kind of site, I usually charge more for e-commerce in example).
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      • Profile picture of the author iAmNameLess
        Originally Posted by Terminator3018 View Post

        Thank you for all these precious information. You are a GREAT person and you are helping me out alot. I really completely appreciate it.

        I have just one question more to disturb you with which is : Do you let them pay something for the set-up/initial cost? Like 700$ initial setup +50$ monthly? Or you go directly with 50$ monthly?(obviously 700$ it's just an example because it depends on the kind of site, I usually charge more for e-commerce in example).
        The cheapest site I sell, is $1,500. There are times I make an exception but those are exceptions, not the rule. Usually I regret it too. LOL. Once the site is finished and uploaded/online then the $50/mo starts.
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        • Profile picture of the author Andrea Rillo
          Originally Posted by iAmNameLess View Post

          The cheapest site I sell, is $1,500. There are times I make an exception but those are exceptions, not the rule. Usually I regret it too. LOL. Once the site is finished and uploaded/online then the $50/mo starts.
          Awesome. Yeah I think that one of my biggest mstake is going for mom and pop businesses instead of aiming to medium/big companies. I'm currently doing site from 500$/700$/1000$ but I should aim more on bigger companies.

          What about affiliation?I was also thinking about contacting a lawyer (or a doctor, for example) and doing a landing page+buying ppc campaigns and setting a call tracking number.

          Every leads they receive from me I get a part out of it.

          Plus, if this is not a rude question to ask...Can I ask you how many clients do you have recurring, currently?
          Thank you in advance
          Andrea
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  • Profile picture of the author Mav91890
    My suggestion would be to avoid PayPal at all costs. You can be a completely legitimate company but chances are, one day they will shut your account down and hold your money for 6 months. Please don't use PayPal long term...
    Signature

    “The only thing standing between you and your goal is the bullshit story you keep telling yourself as to why you can't achieve it.” ― Jordan Belfort

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    • Profile picture of the author Andrea Rillo
      Originally Posted by Mav91890 View Post

      My suggestion would be to avoid PayPal at all costs. You can be a completely legitimate company but chances are, one day they will shut your account down and hold your money for 6 months. Please don't use PayPal long term...
      Thank you, I will avoid it then.
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  • Profile picture of the author JTV
    I know this has been done to death already, but Terminator3018 – AVOID PAYPAL! I have tried PayPal before and they can literally shut you down at the drop of a hat, and then just ignore your calls. That was the most frustrating part, knowing that your money is there, and that you cannot actually touch it because PayPal is being difficult.
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    • Profile picture of the author Andrea Rillo
      Originally Posted by JTV View Post

      I know this has been done to death already, but Terminator3018 - AVOID PAYPAL! I have tried PayPal before and they can literally shut you down at the drop of a hat, and then just ignore your calls. That was the most frustrating part, knowing that your money is there, and that you cannot actually touch it because PayPal is being difficult.
      What do you suggest to set up the recurring payments for my customers instead of paypal? Thank you for the advice. I will stay away from it.
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  • Profile picture of the author kpmedia
    I'm sometimes aghast at the things I read on this site. Race to the bottom, anyone? Prices like that are unsustainable. Furthermore, relying on crappy companies (example: Hostgator) will do you in that much quicker, as customers will leave just as quickly as they came.
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