Just a quick reminder to treat your PayPal account with care. I’ve heard a few stories recently from people who’s accounts have been frozen without warning or explanation, and checking the web it seems there might be a broader uptick in this activity.

PayPal’s terms and conditions expressly forbid any kind of MLM program. That is a very broad description that covers everything from simple referral programs to outright ponzi schemes… all decided at their discretion…

That said, they ‘generally’ don’t seem to have a problem with MLMs as long as there’s a legitimate underlying product. If there’s no actual product or service and you’re only getting paid for new signups, then you could be putting your PayPal account at risk.

From my online research, I believe if you RECEIVE payments from MLMs they won’t have an issue, especially if the payments are relatively small.

It’s only when you start SENDING payments to MLMs or your payouts get particularly large that they might take a closer look at what you’re doing. And if the program is at all questionable you could have an issue.

The problem is, there’s no fixed/clear explanation available before the fact.

Their terms are very broad and one-sided. Basically if they decide you’ve breached their rules, then you have. You won’t get any warnings or any explanation. It will be suspended, the funds frozen for 6 months, and it is very unlikely you’ll ever get the decision reversed.

So it’s worth taking precautions to protect your PayPal account.

Your best option is to use other payment options whenever possible for sending money to ANY program that might be considered MLM… just to be safe. And as much as possible, use an alternate payout option as well.

In our situation, these will mostly be the traffic/advertising type programs that payout over several levels.

I’ve been getting payments from many of these via PayPal for years now without issue, but realistically, that is no guarantee that someone at PayPal won’t decide one day that they’re in breach and start freezing any accounts doing business with them.

Unless you are actively promoting these most shouldn’t generate large enough amounts to raise any red-flags, but again, to be safe, use other pay-in and pay-out options whenever they’re available.

You’ll find most of these sites will accept CoinPayments, SolidTrust, Payoneer and a number of other processors. If you haven’t explored any of those, it’s probably a good idea to start before you find you need them!

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