Is Selling Master Resell Rights Illegal?

Razer Rage · 10-08-2009, 10:41 AM

Think about it. Pyramid Schemes are illegal. What is a Pyramid Scheme? Pyramid scheme - Wikipedia, the free encyclopedia

With MRR, the person who buys the license can sell the product, the RR, and the MRR. This can create a Pyramid Scheme effect. Of course, if you were offering a legitimate product or service, then it can't be a scheme, right?

That depends on what the "enforcer" says. Take paypal and the 7 dollar secrets script for example. People were having their paypal accounts frozen because they mentioned the fact that the person could monetize the report, or resell it.

Paypal viewed that as a Pyramid Scheme.

Obviously, as a marketer, it is not your intention to do anything illegal. You are simply offering rights to a product, which can create a powerful viral effect.

I just wanted to get other Warrior's opinion on this. Do you think selling MRR could be viewed as illegal by the FTC (or some other entity), and get you into trouble?

Mike Hill · 10-08-2009, 01:14 PM

Quote:

Originally Posted by Razer Rage

Think about it. Pyramid Schemes are illegal. What is a Pyramid Scheme? Pyramid scheme - Wikipedia, the free encyclopedia

With MRR, the person who buys the license can sell the product, the RR, and the MRR. This can create a Pyramid Scheme effect. Of course, if you were offering a legitimate product or service, then it can't be a scheme, right?

That depends on what the "enforcer" says. Take paypal and the 7 dollar secrets script for example. People were having their paypal accounts frozen because they mentioned the fact that the person could monetize the report, or resell it.

Paypal viewed that as a Pyramid Scheme.

Obviously, as a marketer, it is not your intention to do anything illegal. You are simply offering rights to a product, which can create a powerful viral effect.

I just wanted to get other Warrior's opinion on this. Do you think selling MRR could be viewed as illegal by the FTC (or some other entity), and get you into trouble?

Not exactly... The reason PayPal had such a hissy fit was because of the way it was worded by default on those sites, which was... Make 100% of your money back (or something to that effect) they took that as a guarantee you'd make your money back.

Resale rights and MRR is NOT a pyramid scheme! For one the products are real products although some are better than others... Also, you are essentially licensing the product for a one time cost.

There are companies who resell products all the time ... like those Bargain shops who purchase outdated or damaged products and sell at a cheaper price. There are companies who buy the rights to sell certain types of products and keep them on their store shelves.

So I don't think (I'm not a lawyer) that purchasing a license, which MRR and RR essentially are, are going to be illegal.

Mike Hill

DAS_Matt · 10-08-2009, 01:43 PM

Quote:

Originally Posted by Mike Hill

Not exactly... The reason PayPal had such a hissy fit was because of the way it was worded by default on those sites, which was... Make 100% of your money back (or something to that effect) they took that as a guarantee you'd make your money back.

Resale rights and MRR is NOT a pyramid scheme! For one the products are real products although some are better than others... Also, you are essentially licensing the product for a one time cost.

There are companies who resell products all the time ... like those Bargain shops who purchase outdated or damaged products and sell at a cheaper price. There are companies who buy the rights to sell certain types of products and keep them on their store shelves.

So I don't think (I'm not a lawyer) that purchasing a license, which MRR and RR essentially are, are going to be illegal.

Mike Hill

What he said!

Steven Carl Kelly · 10-08-2009, 01:45 PM

Nope, not illegal as far as I can tell, and also not a pyramid scheme.

dsmpublishing · 10-08-2009, 01:47 PM

Thats a new way of looking at things thats for sure - never thought of it like this but if you like that is how viral marketing works in the way you pass things around and the creator is making the most money from it via their links.

kind regards

sam
X

10-08-2009, 10:41 AM	#1
Razer Rage Advanced Warrior War Room Member Join Date: Dec 2008 Posts: 625 Thanks: 114 Thanked 65 Times in 44 Posts	Is Selling Master Resell Rights Illegal? Think about it. Pyramid Schemes are illegal. What is a Pyramid Scheme? Pyramid scheme - Wikipedia, the free encyclopedia With MRR, the person who buys the license can sell the product, the RR, and the MRR. This can create a Pyramid Scheme effect. Of course, if you were offering a legitimate product or service, then it can't be a scheme, right? That depends on what the "enforcer" says. Take paypal and the 7 dollar secrets script for example. People were having their paypal accounts frozen because they mentioned the fact that the person could monetize the report, or resell it. Paypal viewed that as a Pyramid Scheme. Obviously, as a marketer, it is not your intention to do anything illegal. You are simply offering rights to a product, which can create a powerful viral effect. I just wanted to get other Warrior's opinion on this. Do you think selling MRR could be viewed as illegal by the FTC (or some other entity), and get you into trouble?
	"I'm not just a whimsical figure who wears a charming suit and affects a jolly demeanor. You know, I... I... I'm a symbol. I'm a symbol of the human ability to be able to suppress the selfish and hateful tendencies that rule the major part of our lives. If... you can't believe, if you can't accept anything on faith, then you're doomed for a life dominated by doubt." ~Kris Kringle, Miracle on 34th Street (1994)

10-08-2009, 01:45 PM	#4
Steven Carl Kelly Trust Christ Alone War Room Member Join Date: Sep 2008 Location: Central Florida Posts: 2,114 Thanks: 22 Thanked 350 Times in 199 Posts	Re: Is Selling Master Resell Rights Illegal? Nope, not illegal as far as I can tell, and also not a pyramid scheme.
	My Voice + Your Content = More Profits for You! <-- Click This

10-08-2009, 01:47 PM	#5
dsmpublishing Friendly Warrior War Room Member Join Date: Nov 2008 Location: Portugal Posts: 1,234 Blog Entries: 68 Thanks: 83 Thanked 148 Times in 105 Posts Social Networking	Re: Is Selling Master Resell Rights Illegal? Thats a new way of looking at things thats for sure - never thought of it like this but if you like that is how viral marketing works in the way you pass things around and the creator is making the most money from it via their links. kind regards sam X
	FREE WSO>> Twitter Expert Version 3.0 Is Live! My Step By Step Tutorial Of How I Gained 60,000 Targeted Twitter Followers This Year And How You Can Make Money Twitter Style! FREE WSO>> How To Break Into Internet Marketing & Make Your First $250 Online One Dollar WSO>> Unrestricted PLR Delivered Direct To Your Inbox Every Month Try Us Out For JUST $1 Free Video WSO>> Make Money Online With Our Free Internet Marketing Video Tutorials