A few months back, I decided to try out the “Instant Commission” affiliate platforms for selling my product and for getting affiliates to promote them. As soon as I listed, the affiliate requests started rolling in. I approved them for Instant Commissions, in spite of warnings on the site to only approve affiliates that you know. I mean heck … I didn’t know more than 2 or 3 of them at best so it sort of defeated the purpose to deny everyone else.
That turned out to be a big and costly mistake. These platforms are full of “affiliates” who steal credit cards, sign up to promote your product, and then make a bunch of purchases of your product with stolen credit cards. They are instantly paid the commissions and they instantly empty out their Paypal accounts. Within a month, the real owners of the stolen credit cards see this charge on their credit cards and file a Paypal dispute for unauthorized purchase. I got six of them within days of each other.
It took me awhile to figure out what was going on, but I soon realized what had happened. Not only did I have to refund all those unauthorized purchases and get charged an additional $25 per purchase for the chargeback, but I also paid the criminal affiliate and the funds were no longer in their Paypal account to recover.
This isn’t an isolated incident. The Warrior Forum is full of stories like this. Let this be a warning. If you decide to use these platforms, please put all affiliates that you don’t actually know and trust on delayed payments and don’t pay them for 60 days until the period of time for disputes is over. Once they see they’re on delayed payments, they probably won’t carry out their scam on you, as they wouldn’t get paid if they did.
I hope this helps to keep this from happening to others. It wasn’t fun and it was costly and it puts your Paypal account at risk to have that many chargebacks come in.