What are ebook resale rights and master resale rights?

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Whats the difference?

Resale rights are when for a certain fee you allow your customer to in turn sell your product, keeping 100% of the profits.

Resale rights allows your customer to sell your product.

Master resale rights are the next step: these allow your customer to sell resale rights to your product

Master resale rights allow your customer's customers to sell your product.

Why offer them?

Resaleable products are generally either of two things:

-A product designed specifically to sell as a resale product

OR

-A product that has already been sold by a business and is either reaching its shelf life, or the company is losing interest in the product for various reasons.

By selling resale rights to a product, you can gain extra income that you may not have previously been able to generate.

Why would you buy Resale rights? 

People buy resaleable products because its quick, easy and cheap way to start an online business.

In many cases you'll get everything you need to start selling the product straight away. You will examples of these in my store, some include the book itself, a sales page, cover and all graphics!

It's a lot cheaper than having a new product created for you from scratch, and you can have you product instantly instead of waiting for development time.

The issues of resale rights

Now that we've had a quick crash course in resaleable products, lets take a closer look into issues that arise.

The first and most obvious issue, and the main one we've been discussing is losing your products perceived value by customers dramatically dropping your price.

When you buy a resaleable product, in many cases you're competing in the same market against the same people providing the same solution. So to compete you need to slash prices.

All of a sudden your $47 ebook with resale rights is being sold for $7 !

Throw in master resale rights and your $47 ebook is being sold for $10 and then resold by the nerw owner for 99cents on eBay.

It happens all the time.

Legal rights 

There has been a lot of talk about whether or not you are legally able to set a minimum price your product can be sold for.

So for example, is it legal to say "you can buy resale rights for my products, but you must sell the product for no less than $37" ?

I'm certainly no lawyer, so i wont even offer my opinion on this, I am however a business man and I will offer my business opinion.

Economics and resale rights  

Legalities aside, there is an easy way to keep your product from being devalued, and that is...

 Dont sell it cheaply in the first place! 

Now while this is over simplifying the issue, it is a basic rule that can help keep your product value from plummeting to 99 cents.

The reason why many resaleable products are devalued is because the product creator does not put a descent value on the resale rights.

For example you ahve a $47 ebook and you sell redale rights at $79

This will devalue your product in record time

If i buy resale rights from you for $79, then all i have to do is sell 10 copies and i've turned a profit. I may even give it away for free to build my mailing list. $79 is a bargain for the extra leads.

This is how many people think, and on their behalf its a good business move.

Stop devaluing your product 

A product being devalued starts with you.

Instead of selling your $47 ebook with resale rights at $79, sell it for $479 with a limit of 10 buyers.

If you dont want other people to devalue your product, then make sure you dont devalue it yourself first.

By setting a limit to the number of buyers this will also increase the value of resale rights as all of a sudden the buyers won't be competing with everyone else,they'll only be competing with a limited number of other potential buyers.

When you set a higher price for resale rights then your customers will need to keep their prices higher so that they can get their money back and make a decent profit.

And master resale rights?

Personally I wouldn't even offer them unless your prepared to see your products devalued to 99 cents in record time.

Himick

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