Many people don’t realize that Paypal will *shut you down without appeal* if you are running a 2-tier affiliate program using their payment processor. It happened to Sam Freedom and you can read the full story here:

[1] http://controversialmarketing.blogspot.com/2005/07/must-read-if-you-use-paypal.html

Paypal considers 2-tier affiliate programs a form of Multi Level Marketing which doesn’t comply with their Acceptable Use Policy.

“This is something we all need to attend to, as a group, and soon. Because any one of you reading this could easily be next. This is what paypal’s compliance dept does day in and day out, look for violations. And if they think 2 tier affiliate programs are a violation, you can bet your life they are looking for more of them right now.

And you can bet that anyone who has received payments from 2 tier programs using paypal, or has ever made payments through such a program, is in real danger of getting their livelihood disrupted in a major way…”

Don’t let this happen to you!

[1] http://controversialmarketing.blogspot.com/2005/07/must-read-if-you-use-paypal.html

And do your marketing friends a favor. Alert them about this too…

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