Tuesday, 26 June 2012

Why You Should Not Resell Master Resell Rights Products

So you just got hold of some Master Resell Rights (MRR) products, what do you do now? Do you resell it to others? Well, I'm convinced that reselling a MRR product, may not be the best way to use that product.

What is a Master Resell Rights
A Master Resell Rights product has a Master Resell Rights license attached to it. Although Master Resell Rights licenses vary, the main feature of a MRR product, is that you have the right to sell the product as well as the right to pass on the MRR license on to others. Basically, you have master resell rights to the product, but you can also give your customers master resell rights to the product.

The ability to pass on the master resell rights license on to customers is what makes Master Resell Rights products different from Resell Rights products. If you just have a Resell Rights license, you can't pass on the right to resell the product on to your customers.

By the way, if you actually want to download MRR products for free, you can once you sign up for a free PLR and Resell Rights Membership to Resell Rights Weekly (note, this link is an affiliate link. Even though membership is free, there is an option to upgrade, where you'll have access to even more downloads. If you sign up through this link and upgrade, I'll earn a commission, but the price you pay remains the normal price)

As I said, membership is completely free, but the downloads that you get as a free member is seriously limited. However, it is enough to get started. The majority of the free downloads are MRR eBooks. If you want more downloads, such as PLR products and bigger MRR products, then you have to upgrade.

Why the ability to sell is the very reason you shouldn't sell
As I've mentioned, with a Master Resell Rights license, you can sell the product as well as pass on the right to resell the product. You can also set your own price when you sell the product. Now, setting your own price for a product may seem like a great thing, but I think the fact that you can set your own price is the very reason why it's not worth selling.

So, lets say you bought a MRR eBook for $5. You resell the MRR eBook for $4. 5 people buy it. One of the 5 resells the eBook for $1, another for $17 (clearly over ambitious) and other one gives it away for free (I'm assuming the license allows the eBook to be given away for free).

Carrying on from the example above, what does the market for the eBook look like? Remember, it's the exact same eBook. A Master Resell Rights license doesn't allow you to make changes to the product (if you want the ability to make changes to the product, then you're looking for private label rights products). The eBook ranges from free to $17. 

The problem with selling
Think of how your customer will feel, is they bought the product from you for $17, when they could have bought it for $1. Do you think you can build a loyal customer base and good reputation, when you sell something at a much higher price than what others are selling it for.

Does that mean you should sell it for a low price? Well, how much money will you make selling the eBook for $1? If you want to be profitable, you're going to have to sell a lot. How practical is it, to expect to make a lot of sales, knowing that there are a lot of other people, selling the same eBook as you. It would have been a different story if the eBook you sold was unique, but it's not. And, the ability to give master resell rights to others will only increase the competition.

Should you sell it for what the eBook is worth? Well, this is a tricky one. How do you determine how much it's worth? Is it the value you place on it, or the value the customer would place on it? Is it the market price (which could be as low as only $1) or is it how much you paid for it? I don't know. Maybe it's the value that you would get, if you read the eBook. If that's the case, I have seen some pretty weak MRR eBooks, that don't even seem worth the time to read... in such cases, it's not even worth giving away. 

It's difficult to justify selling a MRR product at a price that you think reflects it's value, when someone else is selling it for as cheap as possible. If you resell an eBook at $5 because you feel that is what the eBook is worth, but someone else is selling the exact same eBook for only $1, do you really think the customer is going to care about paying a price reflecting it's value? No, instead, the customer will assume the value is $1 and that the person trying to sell it for $5 is ripping them off. So, even reselling the eBook for it's real value may not be a good idea.

Instead of Selling it
What if, instead of reselling the MRR product, you gave it away or added it as a bonus? Well, in this case, since the customer is not paying for the product, they are more likely to look at the value of the product to decide how much it's worth, rather than look at market prices. 

Giving the product away and having the customer decide a value could be more beneficial to you than selling the product. How? Well, assuming that the MRR product you chose to give away has real value (it may take some time to find a high quality MRR product), you'll build a positive image in the mind of the customer and they will be more likely to buy from you. 

Sure, you could sell the MRR product and maybe make a few sales. Or, you could use the MRR product, to build a stronger image and loyal customers I'd say building a strong image and having loyal customers who are actually happy to buy from you, is far more valuable than selling the MRR product and making only a few sales... and possibly even unhappy customers (if they find out that they overpaid for the product). 

Wrapping up
So, assuming you find a quality MRR product and that the license allows you to give the product away or use it as a bonus, it may be more profitable for you to give it away or use it as a bonus, rather than selling it.

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