This article describes the difference between basic resell rights and master resell rights, also known as MRR. The resell rights niche involves the online sale of digital products, primarily information, which the buyer acquires the rights to sell as his or her own. In other words, the buyer purchases a license to sell the product, without creating the content himself. In that way, the buyer also becomes the storefront.
So a web site specializing in resell rights is a site that sells products with these licenses. A vendor of master resell rights, on the other hand, does not just sell the product, but the license to sell it to others as well. It’s rather like the difference between being a bookstore, and a bookstore distributor.
The information for which you offer MRR can be any kind of content that people are willing to pay for, such as e-books, articles, art work, software, videos, downloadable audio, and web site memberships, but your products can generate additional money if you sell licenses for the right to resell them.
So a common question is, why would you want to sell both the product and the rights? Wouldn’t it be more profitable to keep the master resell rights to yourself, thus maintaining the products’ scarcity? If you marketed products effectively, then, more people would have to buy them from you, right?
Well, not necessarily. For one thing, none of us can have access to every possible market. For example, if someone has a social networking presence with a thousand subscribers on a service such as Facebook or Twitter, then he or she can certainly market directly to those people more effectively and quickly than you can. So selling to someone like this the master resell rights can give you the sale of the product, plus the sale of the rights, thereby putting two kinds of money in your pocket, rather than one.
Now then, presuming that you are interested in acquiring master resell rights, then you are probably wondering, “which products are the best sellers?” Just as a bookstore would. Some of the most popular products tend to be those that save people time, money, or energy. So, for example, if a lot of people have a blog at a particular blog service, and there were a way to automate part of their blog posting process, reliably and on a regular basis, then that would be worth a certain amount to them. So, then, if there were a digital product that was just coming onto the market, and you had a chance to acquire a license with MRR, and especially if you were certain that there was a large enough group of users you could reach, that would be interested in this product, and willing to pay enough for it to bring you a worthwhile profit, then that would be a good product to acquire MRR for.
You might even want to create a multi-tiered product. If you owned the master resell rights, and could somehow improve upon the original product, or bundle it with a complementary product that would make the original even more desirable — well then, you now have three or four different products to sell. You can sell just the product, or the enhanced version of the product, or the master resell rights to either or both.
Another strategy is to offer a “lite” version of the product, with or without the MRR, in order to give a customer in the option to try out a limited part of the total product, without making the larger investment required. In some cases, this smaller version of the product could be even more attractive to some users and the full version, if it offers them what they need, without all the extra bells and whistles.
So what could be put even more money into your pocket quickly, than selling MRR one product at a time? Sell them a bunch of products, with all the MRR, all at once. One example of an industry where this is commonplace, is the digital type industry, where an end user can purchase an entire library of digital typefaces at a discount price.
The possibilities of master resell rights are limited only by your imagination and the technology available to you, as well as your own time, energy, and money. The goal with MRR, of course, is to leverage the work of others whenever possible for your own profit, but clearly, if there is a way to make more money with your line of products, then it may be worth some upfront investment in order to get a bigger pay back in the long run.
This will always be a judgment call, of course, but what if for instance, it were possible to issue a time limited MRR? Or a product license with a time limit? Or with a certain number of uses as the limit? Many software manufacturers have used this limiting strategy, in order to attract trial basis users. Of course, this is better than no chance to sell your product at all, and it is always better to sell some of the right to resell a product, since money today is usually better than money tomorrow.
Another well tested, time based strategy, is to offer a special introductory price for limited time, in order to motivate a buyer to act quickly. So if you give the buyer a chance to purchase the MRR for a small additional price now, rather than a more expensive price later, it may compel him to purchase the MRR, along with the product itself.
The bottom line is this: what’s your bottom line? Probably, you will find that it is worth the extra investment to buy master resell rights on products that you feel highly confident about your ability to resell to other resellers. It is also worth your effort to find a source for MRR that you feel is very trustworthy. You can find user boards, perhaps, and query other users about their experiences with a particular vendor. Or, if you can skip that middleman altogether, and build relationships with creators of this material, you can then package their work for resale, both as product to the end-user, as well as master resell rights to other sellers.