Questions about paypal subscriptions for a membership site, new model

New Community Member

My first time using paypal help so if I do it wrong, let me know and I'll sort it out next time.


I am putting together a membership site using PayPal subscriptions. In brief, member joins the site, clicks the paypal subscription link, modal window opens where they buy the subscription, get redirected back to a page of my choosing, and in this case it is the registration page to the website they are joining. Pay first, then register. 


There is a marketing model I would like to explore but I am not sure if this is something PayPal would freak out about due to the potential volume and start freezing accounts so I need to find a person in charge at PayPal to let me know whether this model would be approved by PayPal to proceed or do something else.


In short, nothing illegal or unsavory. My concern is more about the volume because this marketing model has a potential to "go viral" and if PayPal gets a sudden spike in membership subscriptions to the one site from around the world in that kind of a scenario, I do not want PayPal to start freezing accounts and holding funds and p!ssing everyone off and nobody can speak to a human to get it sored out.


Model I want to explore is my work around since PayPal does not yet offer any sort of referral or affiliate option to offer payouts to people who refer new members to the site, which would be much easier. The work around was to forfeit all of the referral revenue to the individual paid members who refer new members. Basically the members use their own paypal business accounts to set up subscriptions to the site, they refer new members to their paypal subscription purchase page and are then directed after payment to their assigned registration referral page to complete the site sign up. Same principle: pay first, then register. This way all of the referral revenue goes to the ones who did the work bringing new members to the site. 


That might be fine for a few dozen or few hundred people, but if thousands or hundreds of thousands of people around the world jump in and sell subscriptions to the same site, is PayPal gonna flip out or can they handle it? That's why I want to speak to a human being with the appropriate authority to answer this question for me.


Next question is about international subscriptions in paypal approved countries that offer business accounts and two way subscriptions. If I set up all these available currencies and somebody from the UK joins the site as a member and pays the monthly payments, how does the whole conversion to USD work? Who pays it, them or me? Is it paid twice? The pay to send it then I pay again to convert it to USD? Will international subscribers be likely to freak out PayPal who starts freezing accounts and taking everyone's money for months on end?


If PayPal is too draconian or can't handle the volume I may go with a different processer. The stories have me concerned. I want solid confirmation before I move forward. 


Thanks in advance to anyone who can help answer the questions...and predominantly, the first question is how to speak directly with somebody with the authority to let me know if this model is going to be a problem with PayPal...not so much whether the community thinks it can or can't.


Login to Me Too

New Community Member

PS, since I don't see how to edit the original post question...


On the model I want to explore, I know that PayPal is used for assorted affiliate programs and even multi vendor situations but in those cases it seems all the revenue goes to one location and then the central entity doles out the payments to all the members. Referral programs or affiliate programs usually offer a small percentage or commission so the only difference here in this model I'd like to explore is instead of offering 10% chump change on the referral commission, I offer 100% entirely and just let them collect it directly using their own account so I don't have to mess with paying people and employees and all that stuff. The site would be multi vendor membership. 


As for the international subscriptions, if the membership is 10 bucks a month and I am in the US and a member from Japan or London or wherever else joins, pays their 10 bucks, exactly how much of that is actually what I receive? Is this going to cost them even more than the 10 bucks on their end? 


I know it's all done but I don't understand currency conversions so any clarity here would help me determine whether it's even worth it to have an international option or keep it US only. Thanks again! I'm done posting questions for the moment lol!

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.