Are Affiliate Products That Are Digital Downloads Considered Pyramid Schemes?

4 replies
I have been hearing a lot lately about how PayPal is locking accounts. How there seems to be a war against affiliates. However, I found that a lot of the problems come from those who are trying to market digital downloads. If someone is an affiliate for a physical product there seems to be no problems.

So I guess my question is does anyone worry that downloadable affiliate products are getting a bad name as pyramid schemes? I believe this is at the heart of a lot of problem and attacks against internet marketers. :confused:
#affiliate #considered #making #program #pyramid #scheme
  • Profile picture of the author Chris Worner
    No because I don't sell any WSOs let alone anything to do with the MMO market. The majority of cases of people complaining here about their PayPal accounts being shut down, more often than not were violating PayPals ToS in some shape or form.

    There are exceptions of course but they are not the norm.

    -Chris
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  • Profile picture of the author Ralf Skirr
    Originally Posted by pheonix44 View Post

    So I guess my question is does anyone worry that downloadable affiliate products are getting a bad name as pyramid schemes? I believe this is at the heart of a lot of problem and attacks against internet marketers. :confused:
    No, the form of the product (physical or digital) does not say anything about being or not being a pyramid scheme.
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  • Profile picture of the author tpw
    A pyramid is when the guys who are the last to buy in lose out on the opportunity to make money.

    Most IM products are training guides, not biz ops.
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    Bill Platt, Oklahoma USA, PlattPublishing.com
    Publish Coloring Books for Profit (WSOTD 7-30-2015)
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  • Profile picture of the author eshapard
    In a pyramid scheme, you pay money. New investors' money goes to pay the old investors. There are affiliate programs like this. Usually, they involve a monthly subscription or a monthly order for something that no one really wants.

    Most digital products are nothing like this.

    I think you're thinking of MLM (multi-level marketing) where you get a commission for your 'downline' up to X levels. These usually aren't pyramid schemes because most still involve selling actual products to actual buyers. But there is some cross-over.

    From what I know, paypal tends to lock accounts when there are lots of refunds. And that happens a lot with shoddy ebooks. Happens little with physical products. The high refund rate of ebooks is to blame.
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