The recent insurgence of the 7$ report theme is all over the IM world. It’s the new catch phrase and concept. However their are some pitfalls. A buddy Jason DeVelvis wrote an excellent review. I posted it below:
By now, you’ve probably been exposed to the “$7 secrets” report and accompanying script that lets you set up your sales the same way – IE, your affiliates can simply use a short link and their email address and get paid the full $7 immediately when their referrals buy…
Well, I’m here to tell you to to WATCH OUT! This is reminiscent of the “Split payment” systems that I loathe so much, because they’re like little business-killing bombs that are waiting for Paypal to catch and shut down your account.
And if you don’t have an Authorize.Net account to fall back on, well, then you’re screwed.
Why would Paypal care? Because they’ve said over and over again (and I think it may even be in their TOS now) that they are against one entity receiving the goods while another entity delivers them. What happens if there’s a complaint? Whose account do you think gets frozen, or worse?
On the lighter, non business shutdown side, what happens if you set up the system, people promote it and get the payments into their accounts, and a customer wants a refund? Do they go to the affiliate they purchased through, and who rightly has their money?
No, they go to you – the owner of the product, and expect you to refund it… Even though you don’t have the money they paid.
But that’s all well and good, because you can notify the affiliate who does have their money, right? Not always – what if that person is on vacation, or worse yet, won’t reply to your emails for whatever reason? Now you’re stuck between a rock and a hard place.
On the flip side, what if you, as an affiliate, promote someone’s $7 sale. What if one of your customers buys it and then requests a refund, but the owner of the product won’t reply to them, so they contact paypal and YOUR account gets frozen, and you never knew that they were upset? That’s a HUGE problem, especially since now you have to explain why you aren’t the product owner to paypal, and they’re likely to shut you down for violating their TOS anyhow.
HOWEVER! There is a HUGE upside to this whole thing – Look at the marketing and systems used, and find a different angle. Why was it so successful? Because it’s easy for everyone involved. How can you create something as easy, but that doesn’t have the same drawbacks? Or, how can you create something with the same idea, but maybe it requires a little more effort to promote. Remember: easy is great, but if it’s going to get your Paypal account frozen, easy sucks.
How can you make it easy and not have the risk? That’s a product worth it’s weight in gold. (Disregard that digital products weigh nothing 
haha)
Think on that for awhile,
Jason
–Excellent Jason.
Re-Tweet This Post
