So unless you have been hiding under a rock for the last month you will know that a major Payment Processor decided to stop doing business with the advertising industry but what caused this?
Firstly I spoke to a lady from Payza who pointed out a few things when they categorised a couple of my sites as multi level sites when they are all strictly one level direct referral programs so I asked why.
It turns out that Payment Processors and Credit Card companies have decided this area of business is high risk and therefore the reason for Payza categorising us as M L M was because that category has higher fees and thats whats applicable now to sites with higher risk.
She basically said we know you are not M L M but your business model is now classed as high risk and thats the name of the high risk category.
So why the high risk?
Well most people here will recall a website using the name something Monsoon and I believe that was the major part of the issue. You see what the owner there did was create an illegal ponzi scheme and use a traffic generating site similar to what we do as a front for it and this has basically drawn attention to the fact that our kind of sites can be easily turned into a ponzi.
In theory any site could but sadly it was our area of business that tis big one decided to use.
This coupled with the fact that they advertised that site and also members advertised that site in our niche too made these payment companies see us as supporting it when in reality owners like myself have been against these type of businesses for years.
Anyway you can read more about the scam site and what drew attention to our niche by reading this report.
So the lady at Payza mentioned that when a account is frozen by the government then the processor is liable for any charges etc so you can imagine how many people that invested in this ponzi tried to get their money back and the charges they incurred so really you cant blame them for covering their backs.
The point now is our industry is tarnished with a bad though and called high risk as there is no physical good just online services involved. So where do we go from here?
I am a big believer we have not helped the situation in many ways by things like focusing on the fact you can be an affiliate and earn from promoting us. Although a direct referral affiliate program is totally legal and ethical to some it seems to appear as an income opportunity.
Also other sites (Not us as I have been against this for ages) have given out cash prizes for surfing and this then becomes an income opportunity for some who surf for money albeit pennies a day.
Then there are the things inside that make us seem not like serious advertising sites like lots of games and collectables where people surf to collect trinkets etc for collections. In my view that has made us appeal to people that want to make a few bucks surfing and surf for fun rather than for advertising. Because in reality that is all we are, an advertising service that allows people to trade viewing other peoples ads in exchange for people viewing theirs. Money and bribes might have increased surfing numbers but it has diluted the serious advertising power of these things.
Remember, when your doing the same online as someone else in trying to build a business then if you was to view 50 sites of others doing the same and then in return others seen your sites there would be a good chance that you probably could work together or have products that others might find useful or compliment what you do. That is the power of traffic exchange and that is what we need to get back to.