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When We Buy - Things To Look Out For in Resale Rights Sales

Aug 16th 2010 at 12:57 PM

This one may be a little to very different because I am really steamed.

Online today you can go to just about any classified, ad, or community boards and you will see dozens to hundreds of posts that tell you about the next best thing. In the early days of information product sales you would find a small percentage offered you the rights, for a large $ additional fee, to resell that product and keep the profits. This was something that was truly not common, it was something that you paid a lot of money for, and it was a really difficult thing to do so only the real guru's even attempted.

Over the years it became easier and easier to get resale rights, it became something that you paid a few extra dollars for, with the attitude being 'you will be making a lot of money on this so you should pay me' and for the most part we did. In the last couple of years, its practically thrown at us in every ad - Resale Rights with purchase, so much so that they give you the whole website in most cses complete with graphics and copy. But that also means that now there are hundreds if not thousands of the same website online and makes the product worth a lot less, it becomes overused and will be forgotten in a matter of weeks. All this means is that when you sell something with the right to sell it again, and again, and again - how valuable do you think that will remain?

When you are serious about resale rights and about making money with this tactic, you absolutely must do your homework. You must research and research every aspect of that product, industry, and the companies currently offering similar products.

Ask, How many ppl hold licences to this product?

How many more will be sold?

Where can we sell it and what are the restrictions?

Can I do a redirect on the url?

What are your long term plans (in other words will they be hard at work on the next product or costing on the success of this one? As a Reseller you have a right to know!

If he isn't thinking ahead then be prepared for a one hit wonder and to be searching for a new producer soon - not a bad thing, just be prepared, and anything else you feel important.

Find out everything up front.

Decide who will take care of the customer service both prior and post sale, this can cause big problems if misunderstood.

In addition, you should have a fund reserved for refunds so that you will not find yourself owing for the difference in business.Some producers will think of this and depending on who is collecting payments from the customer, they should also handle paying them back for refunds. However, you do not want to find out that your producer isn't backing refund policies because it can give you a bad name too. I have gone as far as giving the refund myself in order to satisfy the complaint. The result was that my pocket was $47 lighter, but I have a lifelong customer who has made me a lot more than that $47 and will make me more in the future because of loyalty. Its worth it to me and you should consider this practice as well, within reason of course, as with anything use discretion. 

Understand that Resale Rights can be a wonderful thing, however you should be prepared to pay for the good stuff. If you expect to make a lot of money, dont you think it only fair to pay the author who slaved to create it? My opinion - The author should always be paid first and most.

Don't run away, if a product is that good then your market will realize this and you will be paid what it is worth, making you a lot of money in the process. If too cheap, then too many licences are purchased and the market becomes flooded. The second part is that while that person does sell You Resale Rights, those rights should end with you and only you should  market & sell the product thereby maintaining the value of your own licence. Your client would purchase the right to personaly use that book, product, or service for their own use and not to resell it in any manner.

If you follow these simple guidelines, You will make money. If more original content were writen by the right sources, the market would truly benefit. But we have got to stop circulating the 'dusty' stuff that is currently taking up so much space on so many of our hard drives. We are all good at something, so go utilize your given talents to make some money today.

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