Originally Posted by u-Bob

Does TMM have 'an obligation' to pull the plug on nonpaying sponsors? NO, they don't.

However, the fact that they don't have an obligation to do so, or the fact that other companies (processors, hosting companies etc) continue to do business with non paying sponsors, does not mean it would be a bad idea for TMM to pull the plug on non paying sponsors.

They used to promote NATS as a shave proof solution. By using NATS, a sponsors could tell his potential affiliates "Look we're using NATS, that means we're not shaving, join us and we can make money together". So TMM is not just selling a software solution, they're also selling as it were the right to say you as a sponsor are using a script that you wouldn't be allowed to use if you were shaving. So using NATS is in a way similar to having a 'TMM seal of approval', a kind of 'quality label' that says you are not shaving. So TMM could improve the attractiveness, the value of their "seal of approval" by expanding it from "not-shaving" to "not-shaving and pays on time".

The question of whether or not it is a good business decision to do so entirely depends on TMM. I can imagine it would be good idea for an emerging company to do so in todays market where tons of sponsors suddenly stop paying. I doubt a company with a large market share would make the same decision.