Selling Resale Rights


Selling Resale Rights

If you own a store, there are mainly two types of products you can sell: products that you make and products that someone else makes.

If you are an entrepreneur trying to start your own business and want to sell your own products online, you may find, as one of my clients did, that you are limited by your ability to produce the products. My client has a small factory in South America producing high-quality sports clothing. Once he had the branding right and had set the production in motion, he started going to trade shows to distribute his product. You may think that having too many orders would be a blessing, but in his case it was not. Getting his factory to produce at the required rate was impossible. He was not able to keep up and eventually folded and started another business.

Similarly, another client who was buying and reselling products never anticipated that the company she represented ran into a problem that caused them to stop production for over a month. Orders kept coming in, but she could not fulfill them. She had to take down her entire website, losing income for weeks. She hired someone overseas to redesign the entire ecommerce site, and when she reopened the online store she realize she had no more traffic at all and her losses continued.

There are manufacturers that help businesses by producing products that various businesses can sell under various labels. For instance, the manufacturer of a line of cough medicine can sell their products to CVS, to Walgreens, and to Publix and each of them can put their own label on the medicine. That is known as “private label rights.”

Electronic products don’t have the production restrains of physical products. Once an electronic product is created, it can be reproduced very easily; it can even be uploaded to the internet and made available for people to download at a price, as in the case of music, videos, or ebooks.

Since electronic products can be so easily reproduced, product creators started using a similar concept to “private label rights” called “resale rights.” A company, or a music artist, or any product creator can sell “resale rights” to anyone so that the person can reproduce and sell the product as his own. This is different than reselling a physical product in as much as you don’t have to pay the product creator again. If you are selling physical versions of the product, you reproduce it yourself. You don’t have to buy each copy from the product creator and resell it. It is as much yours as if you had created it, except for one caveat, you cannot change the product. You can resell it, but you cannot put your own label on it, Resale rights do not include private label rights unless those rights are made available to you as well.

Advantages of Selling Resale Rights

As the product creator, you have the right to sell the product directly to customers and that right doesn’t go away even if you sell resale rights to the product.

Selling resale rights may be more profitable than getting affiliates to sell for you. A rule of thumbs is that you can sell resale rights to a product for around ten times the price of the product. Most affiliates are avid joiners but seldom take action. The most they may do is buy the product through their affiliate link when possible, but when you sell resale rights you are paid up front, whether they sell anything or not.
There are marketers who specialize on creating products with resale rights and/or private label rights. You can do it too. It may be a quick way to get some emergency cash into your pocket.



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Free Resources for Instant Download - Click on the Images Below

Here are some free resources you can put to use in your own internet marketing business.
To download, click on the images below

Sarah Staar - 101 Ways to Get Free Traffic

101 Ways to Get Free Traffic

Sarah Staar - Copy and Profit

Copy and Profit

Sarah Staar - How to Sell Affiliate Products

How to Sell Affiliate Products

Sarah Staar - YouTube Hijack

YouTube Hijack

Sarah Staar - 37 Best Free Marketing Tools

37 Best Free Marketing Tools



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