A Clever Way To Make More Money With Existing Products
If you’re like me, you’re always looking for ways to squeeze more profits out of your business. So let me share with you one of my favorite ideas for making more money with existing products…
Sell the licensing rights to the product.
If you’re unfamiliar with this end of business, this simply refers to you selling the resell rights to other marketers. They buy the license for a one-time fee, and then they can sell the product for any price and pocket all the profits.
Did that set your mind spinning? I’m betting you have questions about this strategy. Here are your answers…
Why would I create competition for myself?
Instead of thinking about it as creating competition for yourself, think about it as reaching deeper into your market.
Your products have backend offers with links in them, right? So now imagine dozens or even hundreds of other marketers selling this product all over the world. Simply put, they’ll reach into corners of your market that you couldn’t ever reach on your own.
So why not just set up an affiliate program?
Here’s the thing: you can have both an affiliate program set up even while you sell resell rights to others. Pretty cool, eh?
One of the big benefits of selling the resell rights is that you can charge a premium price for the licensing rights. If you have a good reputation in the market and it’s a high-quality product, you may be able to sell licenses for anywhere from five to ten times the retail price.
For example, if you have a product selling for $50, you can sell a license for $250 to $500. You can see how that puts a nice profit in your pocket.
TIP: The fewer licenses you sell, the higher you can ask for each license. That’s because a product with less competition is more valuable. Often you’ll also find that you attract a higher caliber of marketer when you sell for a higher price. That makes it less likely the marketer will leave your product sitting on their hard drive gathering dust.
What are master resell rights?
When you offer master resell rights, you’re giving people not only the resell rights, but the ability to pass these rights along to others. So while you might sell 100 licenses, these 100 people can sell the resell rights licenses too. You might very quickly have thousands of people holding the rights to your product.
Sounds like a dream come true to have tons of people selling your product, right?
Not quite. Because when you sell master resell rights, you lose control of who holds the licenses. That means it’s difficult for you to enforce the terms of the license. But the worst part is that your product is quickly devalued since people tend to compete on price. So no one will buy your product for full price when they can get it for a few pennies elsewhere.
What are private label rights (PLR)?
This is where you give people the right to modify your content in any way they like, including put their name as the author. While PLR can put a nice chunk of money into your pocket upfront, the backend sales are dismal. That’s because your license holders will take your links out and insert their product recommendations and link.
Not sure where to start? When in doubt choose resell rights, because this option protects the integrity of your product and gives you a nice backend income to boot. So give it a try and see if you don’t agree that selling licensing rights is a great way to boost your profits.