| Mass PayPal Bans of Internet Marketing Products & WarriorPlus Booming

by Chris Munch, 14th March 2019

If you haven’t been living under a rock, you probably noticed that vendors and affiliates are moving over to the WarriorPlus platform… But why?

PayPal has recently been closing and limiting the accounts of some major hitters in the online marketing space. Some of which seemingly haven’t done anything wrong. Vendors and affiliates are scared of losing there accounts.

What could be causing these shutdowns?

The current theory is that PayPal Adaptive Payments (which is no longer being updated and is poorly understood by PayPal reps), can potentially cause one user to be connected to another [unscrupulous] user due to the way it’s designed…

Many of the platforms in the IM launch space are using PayPal Adaptive Payments. It’s what makes “instant commissions” possible. Now, it’s not that instant commissions or PayPal Adaptive are “bad” per se. It’s just that it might “connect” you to another user who has potentially broken PayPal’s TOS or even the law…

It’s all speculation at this point, but the evidence points strongly in this direction, and insider sources have confirmed this is what they are hearing from higher up PayPal reps. Paypal is essentially not supporting adaptive payments internally and is pushing platforms to use different systems to handle payments. Their risk management department doesn’t seem to quite understand how the affiliate marketing instant payment platforms work, or they have just become stricter (and essentially a lot of these platforms contain products that break PayPal ToS).

What Can You Do?

Avoiding using adaptive payments on any platform will help you, and vet your affiliates and the products you promote. JVZoo do offer alternative checkouts, Clickbank uses it’s own Paypal so there’s no risk there, and WarriorPlus uses a ‘wallet’ feature which protects you. More on this below…

WarriorPlus Gaining Popularity

WarriorPlus has had a “Wallet” feature since 2014, but it’s really starting to gain popularity now that people are worried about this PayPal ‘connection’ issue…

Another thing WarriorPlus announced, was that they are working on a feature where they will be the “merchant of record” and accept payment on the behalf of certain trusted vendors, so that vendors can bypass using PayPal altogether. WarriorPlus, like Clickbank, also vets products more heavily so their are arguably higher quality products in the network.

While it’s unfortunate that people are losing their PayPal accounts, the silver lining here is that the industry as a whole will benefit from these changes…

They are the growing pains we must face as marketers. And if the marketplace becomes a cleaner place with better quality products and fewer shady products, fake income claims, etc. as a result — then we will all benefit in the long run.

What’s YOUR opinion about all the recent PayPal closures and platform changes?

Let us know!

from MunchEye - I.M. Product Launch CalendarMunchEye – I.M. Product Launch Calendar