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Private Label Resell Rights

Private Label Resell Rights

Private label resell rights is something like a middleman's job. It involves buying and re-selling a particular product. The following article will tell you about this in detail and explain how this can be a great business opportunity for you.
Rujuta Borkar
I wouldn't blame you if you didn't understand the term 'Private label resell rights'. But once you get over the initial confusion, and with a little help from yours truly, I hope you will be able to understand exactly what the term means. Label resell rights are used mostly in terms of software, e-books and other marketing programs.

More About the Concept

Let's take an example here. Say I write a book and I want to convert it into an e-book because that will increase my chances of getting a 360 degree readership solution. This will allow me to tap the maximum benefits. But I have no idea what needs to be done to sell it over the net nor a clue about article marketing. Then what? Then I contact a resell agent (for the lack of a better word) and sell the Internet rights to him. The rights of the book are then passed to him for selling. In much the same way, the aforementioned rights work on e-books and software.

Every industry has its own terms and conditions of buying, selling or reselling, in this case. These rights are of two types. These are explained below.

Label Resell Rights (Normal)
In this condition, the creator of the product sells the product to an agent for a particular price. After the transaction is complete, the buyer has rights over the product and can make a 100% profit from it. But the creator can place some conditions on the buyer, like the agent cannot change any of the content and has to sell the product in its original format or he can even fix a price in which the buyer has to sell the product. So also, the product is usually sold with a PUO (Personal Use Only) right. Which means that the buyer cannot pass on these resell rights (e-books, software or other programs) to a third person.

Label Resell Rights (Master)
In this, the creator gives the resell rights to a buyer and that allows him to have master rights over the product. This means that he can alter the contents if he wishes to and can claim the product for his own, can sell it at any price he wants; and can give the resell rights to the people he sells it to. Which means that his customers can sell the products and keep the profits in turn.

Private Label Resell Rights Advantages and Disadvantages

Every business opportunity has its advantages and disadvantages. Let us see what some of these are.

These are some of the best advantages of purchasing the resell rights.
  • The most important thing about this business is that you merely sell the product. You do not even have to work on it!
  • If you have the master resell rights then you could even change the contents and use it as your own.
  • By selling the resell rights to other people, you could earn an added income and better profits.
  • Since this requires less time than creating the product, it is a real time saver.
  • You can decide the amount of time that you want to give to the deal. It isn't a hard and fast, fixed timings kind of job.
Of course there are some disadvantages to this deal as well. Here's a list given below.
  • The general rule is that if you buy a product for less money, the lesser rights you'll have over it. So zeroing in on a product that is really worth the trouble, is important.
  • Sometimes the product is not salable at all. This will only make you shell out all that money without getting any profits in return. Again, research a product well.
  • If many buyers end up buying rights for a particular product, the value of the product gets diluted. Which affects the profits earned to a large extent.
  • Sometimes buyers don't read the contracts well and are therefore stuck with a product that is not worth selling or earning profits, because the creator forbids any change.
Purchasing private label resell rights is a very good option to earn some extra money and is fairly easy to do so as well. However, one must at least have some basic knowledge about Internet marketing so that it does not turn out to be a loss suffered.