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PayPal

by pace
5 replies
I have just read Liz Toomey's PayPal Hell and am a bit concerned

Any suggestions anyone please?

I have read of occasions whereby PayPal have shut down people's accounts for breaching the company's APUs


I am in the process of putting together 3 membership sites

One is in the health/fitness niche and one in the cookery tips/recipes niche

Both will be free memberships but will have a selection of e-books that can be purchased and electronically downloaded


The third will be a paid membership site that will have audios, e-books, scripts, software and videos that can be downloaded

All the products have Master Resale or Private Label Rights that I own

I also intend using affilates to promote my site

The target is 5,000 subscribers paying a monthly fee of $20 to $40 (still to be decided)

This would mean that my PayPal account would eventually have a monthly income of between $100,000 and $200,000

This is obviously far in excess of previous history of the account

Monthly payments to affilates would be approx. $50,000 to $100,000


Fine so far, but according to Liz Toomey's book, PayPal are likely to freeze or terminate my account (with seemingly, no appeal) for two reasons

1) My projected income way exceeds previous history on the account

2) I'd be selling products with Master Resale Rights, which PayPal deem to be MLM!!!!


Any help on a Payment processor that will do everything PayPal does, without the hassle or worry about my account being terminated with a large amount of money in it?

Thanks
#paypal
  • Profile picture of the author dvduval
    I wonder if there are any examples of other sites that have a successful model and are clearly getting paid through paypal?
    (and have been doing this for a long time?)
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  • Profile picture of the author googleninja
    I've also read that. I couldn't really give any tip as I'm not selling info products butI think the best way is to have alternative accounts.
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  • Profile picture of the author Waterways2k8
    Hi Warrior Member Pace

    I just noticed your post and thought I would drop by. Now I have been using Paypal for many years but specifically for use with ebay sales and I haven't read Liz Toomey's PayPal Hell.

    But I do know from hearing a lot of gurus/ IM seminars that if you are expecting large volumes of sales/money transfer etc... it would be advisable to contact paypal in advance i.e. directly speaking to somebody on the other end of the phone.

    An alternative solution would be to offer at least another payment options/services i.e. instead of just paypal, also have a different paymetn processor such as nochex / worldpay / google checkout/ 2 checkout/ Trial pay and Authorize.net etc...

    This should be also useful for those who do not wish to use or have an paypal account.

    Oh and I've also noticed that some of the top fellow Internet Marketers use e-Junkie - apparently it's a very good alternative and quite similar to clickbank in terms of payment processing and sending buyers to downloads etc.... so might be worth a look.

    Overall, if paypal sees that your amount is increasing each month rather than: $0 one month and then suddenly next month $50,000, then it shouldn't be a major concern, but if you have major concerns- then the phone call to somebody at paypal maybe the best option.

    Hope that helps and best wishes
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  • Profile picture of the author bgmacaw
    Originally Posted by pace View Post

    1) My projected income way exceeds previous history on the account

    2) I'd be selling products with Master Resale Rights, which PayPal deem to be MLM!!!!
    On the first one, this can get triggered by any US based payment processor due to anti money laundering laws related to drugs and terrorism. To avoid problems you need to contact PayPal and let them know what's going on and why the money is coming in. Think about what would happen if you brought $50K in cash into a bank where you didn't have a good pre-existing relationship. It's best if your payments are mostly small amounts (under $100) and go through a normal transaction process, not 'send money'.

    There's no problem selling products with Master Resale Rights through PayPal. The origin of this 'problem' seems to be the way some affiliate programs were worded, most notably the original one on the $7 Secret script. You have to be careful in how you handle affiliate payouts and statements about them when you're using PayPal to avoid looking like a MLM.
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  • Profile picture of the author senve
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    • Profile picture of the author Mike Hill
      Originally Posted by senve View Post

      Where can I read really GOOD real information on PayPal and how they deal with their users whenever there is a dispute... etc ?

      I cannot find anywhere this Liz Toomey PayPal Hell
      If you want real info on PayPal... Call them and ask. They obviously won't tell you about anyone's account but I'm sure they would answer your concerns.

      Mike Hill
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