Affiliates Multi Tier payouts with Paypal

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by

Stefano

Hi,

In the past I’ve seen information specifying that Paypal does not allow payouts for affiliate programs with more than one level, such as MLM or Network Marketing systems. In my current project for which I’d like to install Affiliates Enterprise I may need to use a 2 or 3 tier system in some cases, although most affiliates will be operating at one level only. Do you have any knowledge of what problems I may encounter with Paypal when I make my payouts to affiliates with 2 or 3 tiers activated?

For example, I’ll be using Groups extensively, and members of “Gold” group would get 10% from 1st level under, and 3% from 2nd level under and 1% from 3rd level under. Members of group Silver would only get 5% from a single level under.

I’d want to handle payouts exclusively with paypal with as much automation as possibile.

Thanks for your help.

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Comments

2 responses to “Affiliates Multi Tier payouts with Paypal”

  1. Stefano Avatar
    Stefano

    Thanks Kento, I’ll do as you suggest and contact Paypal.

    All the best,
    Stefano

  2. Kento Avatar
    Kento

    Hi,

    I would recommend to get in touch with PayPal and explain what you plan to do and obtain their approval. I think the more transparent that you are with them about how the multi-tier part of your business will operate, the easier it will be to work with them. I think that if you do that and the business is not operating against their policies, they shouldn’t be a reason not to be able to handle the payouts through them – but this is only my opinion, you should certainly discuss it with them directly.

    Regarding payment automation, if you get bulk payments approved, then you can generate the monthly (or any other convenient time period) mass payment file through our system and submit it through PayPal to have it processed in one go.

    Cheers

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