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Q: "What is paypals stand on adult businesses
paying out affiliates via paypal?"
: "To determine if transactions violate this policy, PayPal considers these
factors:
-Commissions offered to recruit new members
-Requirements for new distributors to purchase costly inventory or
"start-up kits"
-Members' profits derived from recruiting new members or from the sales
of newly-recruited members ("downline") rather than their own sales
-Payouts from fees or contributions paid by new or existing members
-Money paid into the system that is significantly greater than money
paid out
-Unrealistic or unsupported promises regarding profits or return on
investment
-Percentage of the company's goods sold by a non-distributor
Flow of money derived from new members predominantly moves "upline"
-Preservation of the business rests on the exponential growth of new
members or customers
-Offers of speculative real estate or non-development property
-Business functioning as an auto-surf investment program or a high-yield
investment program
-Warnings from governmental agencies about the business model
PayPal defines these programs as follows.
Pyramid schemes – Members receive money for enrolling other people into
the scheme. PayPal considers online payment randomizers a type of
pyramid scheme because the majority of commissions are paid for the
recruitment of new members, and these systems typically operate by
random placement within the program.
Ponzi schemes – Existing members receive payouts funded by new payments
into the program from new member fees or existing member contributions.
Matrix programs – Individuals pay primarily to be added to a waiting
list for a product. The individual at the top of the list receives the
product only after a set number of people have joined after that
individual.
"Get rich quick" schemes – Include any type of self-employment, start-up
business, or investment opportunity where the claims of profit or
returns on investment are unrealistic or unsupported.
Multi-level marketing programs – Individuals receive proceeds from their
sales of goods or services and from those of recruited members. PayPal
generally prohibits multi-level marketing programs that offer payouts to
both the seller and the individual(s) who recruited the seller. PayPal
reserves the right to permit certain multi-level marketing programs at
its sole discretion."
It appears as if it's not breaking the rules simply because it's adult but for other reasons.
__________________
Previous owner of SoloRevenue
Previous product manager @ Modelcentro.com/MCProfits.com, IsMyGirl.com, SMRevenue.com
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