Advice on Selling rights to product

JonStein · 10-25-2009, 11:46 PM

I am looking for insight into the following situation and opinions from you guys on what is the best way to proceed:

I created a product in a specific hot niche and launched that product about 5 weeks ago. The sales have been phenomenally high and way beyond my expectations.

Since the niche is such a tight and virtually untapped area, and considering I am the only one promoting this product, the potential for $10,000 per week is not beyond reach.

Currently, I use article marketing and 2 social media sites to promote the product to a targeted audience.

Since I am selling my product on my own, I am enjoying an extremely profitable venture, however, I would like to have a few affiliates. My position is that if I am able to sell as well, a few affiliates would definitely generate more income for me.

Now here is the situation, I was approached by a person interested in buying the resell rights to my product, his offer, although generous, is just under my total sales per week for this product.

Since my CTR (40%) and sales ratio (12%) is far higher than any product I have ever promoted, I am hesitant about giving up even limited rights at this time.

What is the best way to proceed with this offer?

What are some of the pros and cons of doing this?

Any suggestions or personal experience anyone may have in the matter is greatly appreciated!

Thanks,
Jon

HarrisonJ · 10-26-2009, 01:07 AM

If you think he will be marketing the product using the same channels you do, its probably better not to sell rights to resell it. Ask for more money if right now it only take a week in sales to get that amount.

Charann Miller · 10-26-2009, 02:43 AM

Why not make him an affiliate? That way he gets to sell and profit from the product, you get to maintain full rights to it and aren't in direct competition with each other, win-win situation.

markshields · 10-26-2009, 03:00 AM

Fantasic idea in the last post to make him an affiliate but first of all before I did that I would just ensure he will not be generating sales using the same channels as you because in essence that could take sales from you which you then have to pay a commission on therefore losing income

Charann Miller · 10-26-2009, 04:22 AM

If he were an affiliate at least you would make money on all sales he generated as opposed to 100% of nothing if he has the rights to sell it as his own.

I think you need to seriously weigh it up, would letting him have rights to your product hurt your sales?

Would the amount he paid you for the privilege of doing so be worth it in the long run financially for you?

I'm keen to see how you get on.

10-25-2009, 11:46 PM	#1
JonStein Active Warrior Join Date: Apr 2009 Location: USA Posts: 74 Thanks: 13 Thanked 22 Times in 14 Posts Social Networking	Advice on Selling rights to product I am looking for insight into the following situation and opinions from you guys on what is the best way to proceed: I created a product in a specific hot niche and launched that product about 5 weeks ago. The sales have been phenomenally high and way beyond my expectations. Since the niche is such a tight and virtually untapped area, and considering I am the only one promoting this product, the potential for $10,000 per week is not beyond reach. Currently, I use article marketing and 2 social media sites to promote the product to a targeted audience. Since I am selling my product on my own, I am enjoying an extremely profitable venture, however, I would like to have a few affiliates. My position is that if I am able to sell as well, a few affiliates would definitely generate more income for me. Now here is the situation, I was approached by a person interested in buying the resell rights to my product, his offer, although generous, is just under my total sales per week for this product. Since my CTR (40%) and sales ratio (12%) is far higher than any product I have ever promoted, I am hesitant about giving up even limited rights at this time. What is the best way to proceed with this offer? What are some of the pros and cons of doing this? Any suggestions or personal experience anyone may have in the matter is greatly appreciated! Thanks, Jon
	To Make Money Blog - Free Tips, Software, Help FREE $Million Dollar$ Advertising Report Powerful Copywriting Manual with FREE site review, edit and Opt-in Templates - Powerful Saleswords

10-26-2009, 01:07 AM	#2
HarrisonJ HyperActive Warrior War Room Member Join Date: Jun 2009 Location: San Diego California Posts: 132 Thanks: 7 Thanked 9 Times in 9 Posts Social Networking	Re: Advice on Selling rights to product If you think he will be marketing the product using the same channels you do, its probably better not to sell rights to resell it. Ask for more money if right now it only take a week in sales to get that amount.
	*Game Website Builder* - Start Your Own Money Making Game Website Starcraft 2 Strategy Guide - Learn How To Play Starcraft 2 Like a Pro Web Traffic Academy - Learn How To Get More Web Traffic

10-26-2009, 02:43 AM	#3
Charann Miller Advanced Warrior War Room Member Join Date: Aug 2008 Location: New Zealand Posts: 518 Thanks: 54 Thanked 30 Times in 28 Posts	Re: Advice on Selling rights to product Why not make him an affiliate? That way he gets to sell and profit from the product, you get to maintain full rights to it and aren't in direct competition with each other, win-win situation.
	"I Need A New Signature".

10-26-2009, 03:00 AM	#4
markshields HyperActive Warrior Join Date: May 2005 Location: , , United Kingdom. Posts: 311 Thanks: 0 Thanked 10 Times in 10 Posts Social Networking Contact Info	Re: Advice on Selling rights to product Fantasic idea in the last post to make him an affiliate but first of all before I did that I would just ensure he will not be generating sales using the same channels as you because in essence that could take sales from you which you then have to pay a commission on therefore losing income
	Find Out Exactly What I Do Each And Everyday - http://www.OneMillionIncome.com View My Blog - http://www.MarkMcCulloch.info Get FREE Marketing Tips - http://www.DecideYourFuture.eu

10-26-2009, 04:22 AM	#5
Charann Miller Advanced Warrior War Room Member Join Date: Aug 2008 Location: New Zealand Posts: 518 Thanks: 54 Thanked 30 Times in 28 Posts	Re: Advice on Selling rights to product If he were an affiliate at least you would make money on all sales he generated as opposed to 100% of nothing if he has the rights to sell it as his own. I think you need to seriously weigh it up, would letting him have rights to your product hurt your sales? Would the amount he paid you for the privilege of doing so be worth it in the long run financially for you? I'm keen to see how you get on.
	"I Need A New Signature".