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Do you do Dry Selling ? Is it legal ?

by briancollins
11 replies
Dry Selling - Creating a sales page and promotions to sell a product, before the product has been created to see if it will sell ?

I saw something by John Reese ( i think it was one of the income.com vids ) which said about dry selling, then I read something by Marlon Sanders which said this was now illegal in the US

Not really sure which was written before, so if we are not based in the US can we do the dry selling method, or is it not / or is, illegal wordlwide.

Cheers,
B Collins
#dry #legal #selling
  • Profile picture of the author LegitIncomes
    I think it's also called "vaporware".

    As long as you actually deliver the product when someone orders, I think it's probably okay.

    I don't know about it being illegal in the US...People preorder video games, movies, software, etc...all the time.
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    • Profile picture of the author Scott Burton
      Originally Posted by Josh Kulp View Post

      I think it's also called "vaporware".

      As long as you actually deliver the product when someone orders, I think it's probably okay.

      I don't know about it being illegal in the US...People preorder video games, movies, software, etc...all the time.
      Pre-ordering is a different issue altogether. Much of the work is complete by the time the pre-ordering is available.

      The question raised here regards a product that does not yet exist, and may never exist, if there is insufficient demand.

      I can't speak to the legality of dry selling, but I believe it is only fair that the customer placing their 'order' be aware that the product is not completed and may not be released. I know this would hurt the sales numbers, but it would probably help avoid some legal hot water as well. Of course if the product is never released/created and you've accepted money for it already, you better be forthcoming with a refund, and the customer really should have been advised what to expect in such a case.
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    • Profile picture of the author Tuzic
      Banned
      hi,

      i would thoroughly look into if i were u because the last thing you need is someone coming along & sending an email to tell u its not!
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  • Profile picture of the author dvduval
    I can remember in the past when we were first developing the paid version of phpLD, we had people that actually wanted to give us the money in advance before we had even finished the product. In this case, I believe we were dealing with people that knew our free product well and trusted us with their money. I think this can be a great way to get investment in your product, especially when trust will not be an issue.
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  • Profile picture of the author richpeck
    There's "dry testing" and "dry selling" and I think uve got them mixed up

    Dry testing is where you "sell" the product but then alert the customer that it's not actually available. It's legal, as far as I know, as long as you make it 100% clear that it's a test.

    Dry selling - or taking their money - isn't ethical but I'm not sure about the legalities of it.

    Hope this helps? Maybe try Googling "dry testing"
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    • Profile picture of the author Daniel Molano
      Originally Posted by richpeck View Post

      There's "dry testing" and "dry selling" and I think uve got them mixed up

      Dry testing is where you "sell" the product but then alert the customer that it's not actually available. It's legal, as far as I know, as long as you make it 100% clear that it's a test.

      Dry selling - or taking their money - isn't ethical but I'm not sure about the legalities of it.

      Hope this helps? Maybe try Googling "dry testing"
      Yes that is a good differentiation. Anyway, dry selling is legal as long as you deliver what you promised and that you state something like "It will be delivered in two months" or "It's not ready yet, you will receive it as soon as it is". I guess you can call it pre ordering.

      But if you sell them something and they receive nothing for their money, that is just plain scamming and obviously ilegal.
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    • Profile picture of the author briancollins
      Originally Posted by richpeck View Post

      There's "dry testing" and "dry selling" and I think uve got them mixed up

      Dry testing is where you "sell" the product but then alert the customer that it's not actually available.
      Hey,
      Thanks for all the replies.

      Yeah you're right, I meant dry selling.
      It was a while ago when I saw the info about it, so went back to it again and it later explains the concept of having a two page order, so once the prospect clicks on order you have a page saying "sorry the product is being updated and will beback available shortly, fill in your name and email in the form below to be alerted of when it is back up" then u have a mailing list form.

      But you have this page before and don't take any money off of the customer.

      Sorry for the mix up, my fault.
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  • Profile picture of the author seasoned
    Offering is LEGAL, to the best of my knowledge. SELLING is also, in the US, as long as you let them know of the delay, and give them the option to back out. BTW js&a got into a lot of trouble, around 1980, when THEY didn't do the later.

    STEVE
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  • Profile picture of the author ahuddy
    This goes on all of the time on ebay before a hot new car or cell phone comes out. For example right now there are tons of people selling the tmobile G1 Android phone. It wont be released for about 2 more weeks but ebay isn't taking action against people selling it. So it should ok to do what you are saying.
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    • Profile picture of the author Frank Donovan
      Originally Posted by Scott Burton View Post

      Pre-ordering is a different issue altogether. Much of the work is complete by the time the pre-ordering is available.

      The question raised here regards a product that does not yet exist, and may never exist, if there is insufficient demand.
      I wonder how this applies to seminars or workshops.

      Is there always a clause which states that the event in question is subject to a minimum response?

      If not, that sounds like it could be classed as "dry selling".


      Frank
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