Make Money with Licensing | Resell Rights Explained

Millions are made everyday online & offline using licensng. This article covers some ways to use licencing both as a product owner and a licensed reseller. Plus many of the terminology is explained here.

The hardest part for many people starting out online trying to make some extra  cash is having your own product of your very own to sell. Having your own product is the best thing you can do eventually to make a name for yourself and build a business.

However, the next best thing for many is to become a licenced reseller for a product. In most cases this will allow you to resell, reprint and distribute a product and keep all the sales.

OR if you have products of your own but want to increase sales you can become a licenced business to put famous names on your clothes, books, pencils, etc – whatever it is you are selling. So instead of just having a name that is not well known now your products are instantly well known by the name on them.

Here is proof that licensing works for many businesses…

Licensing a Brand, Name or Image

I bet you could go almost anywhere on the planet earth and eventually see something with the Disney brand signature on it. Why? They licence their name to businesses to put onto everything you can imgine as long as it is approved by Disney.

Sales for licensed resellers in 2007 were like $26 BILLION!!! Check this out….

“Disney Consumer Products Continues Strong Growth At Retail
Standout Growth for Disney·Pixar’s Cars, Disney Princess, New Tween Properties and More Announced At the 2007 International Licensing Expo

June 19, 2007 — New York, NY — Retail sales by Disney and its licensees are on track to reach the $26 billion level in fiscal 2007 (FY07), which would double the $13 billion in retail sales of just five years ago in fiscal 2002; it was announced today by Disney Consumer Products (DCP) Chairman Andy Mooney at the International Licensing Expo in New York City. DCP expects 13% growth in retail sales over fiscal 2006 as it continues to expand its licensing business with a rich and diverse array of entertainment properties for all ages…..” read the rest here: https://licensing.disney.com/Home/display.jsp?contentId=399931&forPrint=false&language=en&preview=false

That is some serious business! In fact Disney has an entire business branch dedicated just to licencing: https://licensing.disney.com/Home/display.jsp

So as you can see, it is big business. The next time you are out shopping check to see how many licenced products you can spot. I bet you’ll need a calculator there will be so many.

Licensing Music

Another example of licencing is the music business. If you see commercials or TV shows playing famous songs, most likely they had to buy the rights to do so. In fact, many may remember when the Beatles music company sold the publishing rights to their music to Michael Jackson for mega millions of dollars. Now I think MJ is selling them to help bail himself out of debt.

Here’s a good article about licensing music: http://entertainment.howstuffworks.com/music-licensing.htm

Many may remember when Napster got sued (and lost) by the big label companies for not abiding by the license rights of their music. Actually one of my favorite bands – Metallica was one of the first to sue them, followed by Dr. Dre, Madonna and others. You can read more on that here: http://en.wikipedia.org/wiki/Napster

 Licensing Books and Publishing Material

Another example is to by the rights to sell someone’s product. You can do some google searches and most likely find places to buy the rights to sell Dan Kennedy’s products for example. Publishers sometimes buy the exclusive rights or reprint rights to lines of products as well, check out places such as Nightingale.com or Naphill.org.

If you buy the resell or reprint rights to a book or software make sure you understand the licence terms before you buy them and start reselling. In some cases you may need to pay royalty fees while in other cases you may not need to.

Make sure you understand basic license terms and conditions that go with a product you have a reseller license to.

As a licensed reseller, right-protected products ensure that you can offer far greater value to your customers with the only upfront costs being the license itself. It’s a quick way to get started if you have the money to buy the rights. Some are very high end and cost tens of thousands of dollars just for one product while others are very affordable. 

Different items come with different plans for the way you’ll use them.

Here’s a quick overview:

Giveaway Rights

You are free to pass on the ebook or software at no cost to anyone. You sometimes
are not even allowed to sell it. You can find these rights usually stated at the beginning of
ebooks or somewhere in the software file.

Usually the author is more interested in getting more exposure, making a name for themselves, getting their product viral or building a list if they are using giveaway rights. Many times these are lead generators for their other paid products and services as well.

Giveaway rights are good for the end user as long as the content is quality and helps those who use it.

Resell Rights

Generally, you are free to sell these products at suggested resale price, plus these are usually royalty free with digital resell rights, so you keep all the money yourself.

Good ones come with pre-written sales pages, product images and even thank you pages,
and there’s usually a suggested retail price listed. You should note that some countries such as the US & the UK have price fixing laws. You can read more about those here: http://en.wikipedia.org/wiki/Resale_price_maintenance  This is why licenses will say “Suggested Retail Price” in many cases. Make sure to read the terms and conditions set forth by the authors.

Once in a while, you’ll come across a product with resell rights that has a few other limitations, such as a required minimum retail price or certain things you aren’t allowed to do, like bundling them or giving them away free without permission. You should follow these terms out of respect for the author you bought the rights from.

Depending on the terms, you can sometimes give them to your customers or members
if they paid for something else, such as another product or membership fee.

The biggest difference between resell rights and master resell rights is that with just resell rights you cannot sell the rights to others – you can only sell the product.

Master Resell Rights

When you have these rights to a product, depending on the terms – you could give it away, resell it, bundle it, create new information packages or include them in your own membership sites such as SureFireWealth.com.

You can even pass on or sell the resell rights to others, meaning that when you sell
that product to someone, they can turn around and sell it to someone else.

Master resell rights usually cost more (and you can charge more when you sell the product) but they give the licensed owner more control.

Master resell rights do vary a little depending on the product creator. Also make sure you understand the difference between NON TRANSFERABLE Master Resell rights and TRANSFERABLE Master Resell Rights.

Non Transferable means exactly what the name implies – you cannot give/sell those rights to anyone – only you have those rights so they are more exclusive/high end and usually more expensive. For an example of products with rights go to: RightsGoldMine.com

Transferable means you can pass on/sell those rights to others.

Private Label Resell Rights

Here’s where you can get really original! You usually get the source files to a product,
so you can create a new product from it and call it your own.

You could edit the content, add to it, remove certain parts, create new images, redo the sales page and repackage the entire product.

You could even use the text content to create a niche website theme, online e-course, or break a large file into mini reports.

You could then take the product you redid and give it away, resell it, bundle it, create new information packages or include them in your own membership sites such as SureFireWealth.com.:)

Whatever you like within the licence private label terms you have! Most of the time,
you can even sell the resell rights to others.

That is, unless otherwise stated in the private label rights, you could sell that product along with the resell rights for a higher price — and that would allow your customer to sell it to someone else.

Private label rights are usually the most expensive form of rights to buy, but you get the most latitude in what you do with the product with full editing control and the ability to create new products from the source files.

Non Transferable Master Resell Rights

As mentioned above – this is important so am mentioning it again – Generally, these have the same rules as the master resell rights listed above except you cannot sell the master resell rights, only the basic resell rights and the product itself.

Non Transferable Private Label Rights

Generally, these have the same rules as the private label rights listed above except
you cannot sell the private label rights, only the product itself or use the content to
create new products.

Many times private label and source code are used together. Usually PLR is used for text content while source code is used for software programs.

Please take some time to absorb this information, if you have added knowledge on rights feel free to leave a comment to help everyone out as well.

Resellers - make sure you always  read the terms that come with each product very carefully. When in doubt try to contact the publisher directly with questions about the rights you have selling their product.

Product Owners – think what you can do to add licensing options to your line of products and services. This could really help to increase your profits over many years to come.