Do you remember the legend of the Trojan Horse? In the story, the people of Troy were presented with the gift of a giant horse, parked outside the city’s gates. When they brought the horse inside the walls of Troy, the invading army leaped out from its hiding place, within the horse, and conquered the city.

Free resell rights work on the same principle. You give someone a free downloadable item, generally an e-book, with useful information inside. In order to take full advantage of the free content’s advice, which is often information on some way of making money, the reader must then join a web site or subscribe to a service, typically by paying a fee for a newsletter, the special insider’s report, or some such item that adds value to the item with free resell rights.

So, by giving someone a downloadable item for free, an item with free resell rights can pay off for the person who gives it away.

To be sure that this scheme works out, you must offer some value added service or content that the person purchasing it perceives as adding genuine value, above and beyond the freebie. In other words, you may get away with scamming individual users for a little while, but in order to build brand name recognition and customer loyalty, you need to be perceived as someone knowledgeable and trustworthy. Bad news and good news alike travels across the Internet at the speed of a click, so no matter how clever you may be with the use of aliases and so forth, word gets around fast regarding scams.

A different but related approach involves the use of affiliate marketing links embedded within the item with free resell rights. With this kind of scheme, you do not provide the actual content, but rather, you get a commission on any sales that are made as the result of the user who downloads your content, then links to the content provider to pay for the seller’s content, via the link you have provided as an affiliate marketer.

Over time, it can be quite lucrative to collect commissions on an ongoing basis for subscriptions that are maintained via a link that originated from your downloadable content with free resell rights .

However, the main point here is to create perceived value, by making a nearly irresistible offer to the user, by offering a free item or bundle (some kind of “package deal”), that makes it a quick and easy process to download the content.

Now, with the package deal, you need to bundle a group of items with free resell rights, usually on the same basic topic, that have a perceived value to the user who takes the trouble and time to download them. It is like giving a free sample to a shopper at the supermarket, so that he or she will buy a whole box of the product. In your free downloadable item or bundle, you might even offer them “serving suggestions” so that they can get increased value from the freebie, by following your “recipe for success.”

Let us say, for an example, that you are offering a short e-book with free resell rights on the topic of how to prepare for a job interview. You might also want to include an article on how to dress for success, another article on the top 10 mistakes that people make when they apply for a job, and maybe a short tutorial on how to write a résumé.

You can see, clearly now, that all of these items are related, and they will be of interest to nearly any job seeker. Yet certainly there could be further information that the user can only acquire by paying you for a phone consultation with you to rehearse his or her upcoming job interview, or perhaps by engaging with you in an online chat for career counseling, or maybe by purchasing your entire book or course on how to do a career makeover. Of course, your complete book or training series can serve as the source for all these sample articles with free resell rights.

Another way to create perceived value is to offer user testimonials. Sure, these could be written testimonials accompanied by a photo of the user. That is a time-tested and traditional approach. Nowadays, however, with the advent of YouTube and the like, why not upload video footage instead? This could give you a leg up on your competition. A commercial featuring a live performer is even more convincing than written material with a photo and a name, which to many people’s skeptical minds, can be easily faked.

If the product you are offering is too brand-new to have an established base of user testimonials, then you can work around this problem by offering your product free of charge to a few people who agree to be your testers and provide testimonials.

Of course, you will include some user testimonials, whether written or videotaped, in your promotions, including any item with free resell rights. In essence, then, the freebie is an ad for your paid product. Be sure to include plenty of your links in any freebie, so that your ad keeps working for you any time the user passes along the content!

So remember the legend of the Trojan Horse, whenever you are trying to make money for your enterprise by leveraging the power of the Internet:

1.    Give your potential customer an item or package deal with free resell rights.
2.    Follow it up with an irresistible offer.
3.    Give them reasons to perceive and believe you are a trustworthy source.
4.    Then give them real value.

By following the steps in this article, you can build credibility and create positive word of mouth for your products and services, and you may even be able to build a secondary income stream through affiliate marketing links. Before long, then, you will be well on your way to being a successful online entrepreneur.