Selling Digital Products with Paddle
Hi, I'm Alex, and welcome back to the Boathouse Paddle series, where we talk about everything concerning Paddle. Today's question is, I've been rejected because I sell consulting services, but I want to sell digital products. Can I do that? Well, the answer is yes!
Let's dive into the details of why Paddle rejects consulting services and how you can effectively sell your digital products via Paddle.
Why Does Paddle Reject Consulting Services?
Paddle has specific prohibited categories, and one of them is human services. This means you are not allowed to sell consulting services or any freelancer project services via Paddle. This prohibition is because Paddle operates as a merchant of record, meaning they sell on your behalf. The key issue here revolves around the deliverability of human services.
However, if you separate your consulting business and its payment methods from the digital products you intend to sell, you can navigate this restriction.
Step 1: Understand the Prohibited Categories
First and foremost, be aware of Paddle's prohibited categories. Knowing these restrictions helps you avoid violations and ensures a smoother onboarding process.
List of Prohibited Categories on Paddle
Step 2: Separate Consulting Services from Digital Products
If you currently run a consulting business but want to expand into digital products, ensure that the payment for consulting services is handled differently. This separation is crucial:
- Consulting Services: Use a different payment method.
- Digital Products: Sell these through Paddle.
Step 3: Clear Communication with Paddle
When you initially apply to Paddle, make it clear that:
- Consulting services and digital products are separate ventures.
- You will only use Paddle for digital products.
This distinction helps Paddle understand your business model and reduces the likelihood of your application being rejected.
Step 4: Provide Detailed Explanations
If you get rejected initially, don't get discouraged. You'll most likely need to provide additional explanations to Paddle. Here's what you can do:
- Explain the Separation: Make it evident that consulting services are paid via a method not connected to Paddle.
- Only Digital Products: Assure them that only digital products will be sold via Paddle.
Conclusion
To wrap it up, while Paddle does not allow the sale of consulting services, you can still successfully sell digital products by ensuring a clear distinction between the two services and effectively communicating this to Paddle.
Thanks for watching, and good luck with your digital product sales on Paddle!
If you separate your consulting services from your digital products and communicate this clearly to Paddle, you'll be up and running in no time.
