Traffic Exchanges & Mailers – what went wrong?

no more paypal

PayPal’s gone. Which payment processor will be next?

It’s now been a couple of month’s since PayPal limited the owners accounts of a huge number of Traffic Exchanges & Mailers, and I still don’t see very many owners changing their methods. I’m not saying none – there are many owners doing an excellent job. But, even with sites already being rejected by Payza and 2Checkout, I’m still seeing owners who continue to allow their members to advertise dodgy or even illegal programs.

I’ve even heard one owner state –

“I am not required to dictate to anyone what they can and cannot promote”

How bloody stupid is that? As an owner your are required to protect your members from all scams. It makes no difference that the membership is private.

There were numerous owners refuting PayPals classification of us as MLMs, but no one appeared to be asking why Traffic Exchanges & Mailers had been classed as MLMs?

I’m no lawyer, but I am able read and I have access to the internet. Therefore, I have read a considerable amount about the the American “consumer protection umbrella”. Why? Because America is a very large market and all sites will have American members. Plus America has Government agencies that work very hard to protect their citizens from scams.

Based on my reading, this is why I think that the industry is seen as an MLM industry –

The definition of MLM from Georgia’s statute –

Multi-level marketing (“Multilevel distribution company”) means any person, firm, corporation, or other business entity which sells, distributes, or supplies for a valuable consideration goods or services through independent agents, contractors, or distributors at different levels wherein such participants may recruit other participants and wherein commissions, cross-commissions, bonuses, refunds, discounts, dividends, or other considerations in the program are or may be paid as a result of the sale of such goods or services or the recruitment, actions, or performances of additional participants.

The definitions of a multilevel company or multilevel marketing plan in the other states that specifically define multilevel marketing are identical or very similar to Georgia’s.

 

Even if you only offer referral commissions one level deep, if you offer different rewards for different membership levels you are going to be seen by the payment processors as rewarding at different levels – an MLM.