If you are good at developing products, may it be E-books or software, selling Private Label Rights to these products can be suitable for you. Private Label Rights have a high perceived value because it allows your buyers to put their name on a product which they haven’t created themselves. It can save them a lot of time.
In case you already have an existing digital product which you have created and sold in the past and you are looking for additional sources of income, you can consider selling the Private Label Rights to other Internet Marketers.
Why other Internet marketers? Because they are constantly on the lookout for new products to sell. There are only so many products they can create themselves in a month so buying the rights to products they can start selling as their own seems to be very attractive to most of them.
Making Money from Selling Private Label Rights products
The following are ways you can make money from selling Private Label Rights products:
• Upfront Sales. This is the most attractive part of selling Private Label Rights. Private Label Rights can range from a few dollars to even thousands of dollars, depending on the quality of the product, its demand and how proven it is (aka how many sales you’ve made for the personal use version…).
• Selling Basic/Master Resell Rights to the Private Label Rights product. You can sell the Basic/Master Resell Rights to the editable, raw format of the product separately. If your buyer wishes to resell the Private Label Rights, you can charge him 4-5 times the normal price of the product and up 10 times if the buyer wants to have the Master Resell Rights, allowing him and his customers to resell the Private Label Rights to the product, as you are doing.
Pros
- You can make a lot of money from selling Private Label Rights, as these are some of the most expensive rights you can buy in the Internet Marketing field.
- Your customers will mainly be Internet Marketers, and savvy Internet Marketers are usually busy people and they prefer to focus their efforts more on marketing than product creation and setting them up. Thus, they do not have any problems with making purchases on Private Label Rights products, as long as you give them good reasons to buy from you and presupposed you help them to save their time from having to create their own quality products from scratch.
Cons
- There is often no residual income in selling Private Label Rights products. This is because your customers, who are mainly Internet Marketers, will edit your product and use their own affiliate links in it. Unless you start a Private Label Rights membership site, you’ll make your money solely from upfront sales.
- Selling Private Label Rights products means that you cannot take the credit of authorship. One of the main benefits that make Internet Marketers buy from you is because they want to have the privilege to put their name on the product as the author. You remain anonymous.
- Creating your own Private Label Rights product demands a high degree of expertise, talent, thorough research, programming (for software) and writing skills on your part. If you do not have any of these traits, creating your own Private Label Content can be a difficult challenge.
- Creating your own Private Label Rights product is effort and time consuming. Unless you are using the product yourself, it may not be worth your time and effort in the long run even though there is a lot of potential income to be made from selling Private Label Rights.
What You Need Before Getting Started
You will need the following before getting started on creating and selling a new Private Label Rights product (if you don’t have an existing one):
1. Word Program
If you are going to create a Private Label Information Product (E-book), you will need a Word program to create your Information Product in .doc format. If you are using MS Office, the Microsoft Word program should already be installed on your PC.
Alternatively, you can use your free NotePad program to create your Information Product in its raw format, though Microsoft Word is preferable, since you’ll be able to add different formattings to the text.
2. PDF Converter
You need a PDF Converter program which will convert your finished Word document to PDF format (the PDF format is the best format out there because it allows you to offer your product to MS Windows users AND Mac users – .exe files can only be opened by Windows users…). If you do not have any PDF Converter program installed on your PC, you can get a free PDF Converter software here.
3. Graphics Program
You’ll need a program to design your product’s E-cover. I use Adobe Photoshop to design my E-covers (in combination with some nice plugins). Adobe offers a free trial version (30 day usage) here.
4. Good Salesletter
This is a very important element of your Private Label Rights sales success. If you cannot convince your prospects to buy from you, you cannot make any sale – no matter how good your product is. If you don’t know how to write a good salesletter yourself, then outsource that part to places like Elance.com or Scriptlance.com. They have a feedback system there which is similar to Ebay’s system so you can choose the freelancer with the best feedback/price ratio.
5. Web Hosting and Domain Name
You’ll need to register a domain name for your product (at e.g. Namecheap.com) AND you’ll need web hosting for it. These are not the same things. Registering a domain name simply means that you have a www.yoursite.com address registered in your name.
In order to let other people come to your new website, you’ll still need to rent web space on the Internet so you can store the files for the salesletter, Thank You page and your digital Private Label Rights product (the PDF file). Basically, you rent this space from a web hosting company which specialises in making servers available with a direct connection to the Internet.
6. Auto Responder
You need an Auto Responder to:
• Follow up with your prospects who do not buy from you for the first time, and
• Build your mailing list. By having your own mailing list, you can make your money from your customers within a short period of time.
Personally, I’m recommending Aweber as it has the best delivery rates for emails on the Internet. It’s the one I’m using to send out my own newsletters and it’s a service which comes highly recommended by all the top Internet marketers.
7. Credit Card Payment Processor
You will need this to collect the payments from your customers. If you don’t expect a too high sales volume, you could go with Paypal since most Internet marketers who are going to buy from you will expect this payment solution. You can use it in combination with some script so you can automate the payment and delivery process and protect your downloads.
Alternatives are Clickbank (one time fee to register as a merchant – it has Paypal integrated now), 2Checkout (one time fee to regsiter as a merchant, too – Paypal has been integrated, too) or 1Shoppingcart (monthly fee).
Conclusion:
Once you have all of these things in place, you can start driving traffic to your salesletter. If you already have a list, this can be as easy as sending an email to your list. If you don’t have such a list of prospects and customers, you’ll need to contact other list owners who have potential customers on their lists (also known as JV). But this also means that you’ll make less per sale as you need to pay them a commission for each sale (usually between 50-100%).
Yes, some people even give away 100% commissions just to get customers on their own list. Later down the road, they can start selling their own stuff to them and they get to keep everything – which is the whole purpose of giving away the full commissions. The other reason is that they might have a One Time Offer behind it, on which they make 50% so they can still profit from a high number of sales when giving away 100% commissions…
Friday the 18th
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