Understanding Paddle's Acceptable Use Policy

Today, we're diving into the Acceptable Use Policy (AUP) - specifically, what you can and cannot sell using Paddle's platform.

What Can You Sell Using Paddle?

When you create an account on Paddle, the first form you'll encounter will prompt you to select your product category. If you try to select anything other than a digital product or SaaS, you'll hit an error message. This is because of Paddle's Acceptable Use Policy, which you can read in detail here.

Why Digital Products and SaaS Only?

There are certain restrictions imposed by credit card providers and payment networks that Paddle must adhere to:

As Paddle acts as the merchant of record, they have additional rules they must follow to ensure compliance and minimize risk.

How to Get Approved

To avoid any complications with Paddle, it’s important to clearly present your business type and offerings right from the start. Here are some tips:

Examples of Digital Products and SaaS

  1. Digital Products: Ebooks, online courses, software licenses.
  2. SaaS: Subscription-based software, cloud services.

Both categories must not be tangentially related to any form of consulting or human service.

Exceptions and Conditions

Support Services

If your main business is SaaS, you can provide some related support services. Examples include:

During the onboarding process, you need to explain these services to Paddle and how they relate to your SaaS product.

Freelancers and Consultants

Freelancers or consultants who provide project services and want to sell digital products can use Paddle, but there's a catch:

Pro Tip: Make it clear in your communication with Paddle that you understand consulting services can't be sold through their platform, and specify which digital products you plan to sell. Once clarified, you should be good to go!

"As long as you have a digital product or a SaaS as your main business or the product you're selling, you should be fine creating a Paddle account."

Quick Reference Guide

Things You Cannot Sell on Paddle:

Things You Can Sell on Paddle:

Additional Insights on Acceptable Use Policy

Payment Restrictions

Being compliant with payment restrictions is crucial:

For Paddle, staying compliant means avoiding high-risk product categories and ensuring the integrity of their merchant records.

Approval Tips

To ensure a smooth approval process with Paddle:

Examples of Best Practices

  1. Clear Product Listings: Have a well-structured listing of your digital products or SaaS offerings.
  2. Comprehensive Descriptions: Provide thorough descriptions to eliminate any ambiguity.
  3. Compliance Assurance: Regularly update your product listings to stay aligned with Paddle’s policies.

FAQ Section: Common Questions About Paddle's AUP

What if I Want to Sell a Mix of Digital and Physical Products?

Unfortunately, mixed business models are not supported by Paddle. You'll need to use another service for physical product sales.

How Can I Shift My Consulting Business to a Digital Product Focus?

Can I Use Paddle for crowdfunding or fundraising?

Typically, Paddle’s platform is designed for SaaS and digital products. Crowdfunding or fundraising might not fit within their accepted models.

What Happens If I Violate the Acceptable Use Policy?

Violating the AUP can lead to account suspension or termination. Always make sure to adhere strictly to the guidelines provided by Paddle.

Conclusion

It’s crucial to understand Paddle’s Acceptable Use Policy if you plan on using their platform. Always be upfront about your business model and product offerings to avoid any hiccups in the onboarding process.

By being proactive and communicative, you can seamlessly integrate with Paddle and leverage their platform for your digital product or SaaS business.

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