Legal Issues - Income Claims On A PLR Product

Ah, but this is what you are not getting. You did create the course.

You are not fully understanding what PLR is.

It is like buying ingredients for a dish you are making.

You buy the flour, the sugar, the cinnamon, etc. Then you make your own cake.

You are selling it, not the vendor where you bought the ingredients from.

PLR is a guideline. You need to take it as such.

Did you know that some products you buy on the shelf, like shampoo, can be compared to PLR?

There are some basic shampoo ingredients. A new brand will come along, and tack their own label on it. They might add a new scent or change the bottle it comes in.

Now, let's pretend that shampoo came with a "makes your hair fuller" claim. That is more of a marketing claim, and needs to be backed up with evidence.

I go to the store, I buy the newly branded shampoo, and turns out it did not make my hair fuller. I go to return the money, and complain, and want to know where this company got this brilliant idea that it could make my hair fuller. That company needs to provide its own proof. They are not going to go to the FTC and say "well, so and so where we bought the formula from said it would do this."

As your own business and your own company, you are responsible for what goes in your stores, and what claims are on the products.

Now if I buy Alberta VO5 directly from the distributor, and my hair is not fuller, I am going to ask VO5 to show me what proof they have of the fluffy hair.

If I buy it from the local market, I can go there for a refund and they will deal with the main company.

By you taking on that information as stuff that you own, you are now responsible.

If you were just an affiliate for the same product, the product owner above you is responsible when the product fails.

This isn't entirely true. When you use RAP(bank) and/or PaySpree you're a reseller not an affiliate.

One of the key selling points for the rotating commission model used by them is that the affiliates aren't getting affiliate commissions so there's no need to send 1099 forms and so on.

But that means the affiliate is really a reseller so they have the same obligations as the vendor does when they receive the money direct.

Also, you aren't really making all the profits (in 99% of the cases). You get every other payment, meaning you are making a 50 percent commission for every person you send to the site.

What I wanted to add too - what might suit you better is finding a product that has Master Resell Rights.

With MRR (again you need to check the fine print as this is just a general rule) you get to host the product, make 100 percent commissions on every sale, but you are not allowed to edit large parts of the product.

Something you might see on MRR is a link on the template which points to the original product creator (buried on the bottom or on the download page) and an aweber sign up form or bonus products that are only available through the primary product creator.

With MRR you can get benefit of adding your name to a product (Big Marketers Name brought to you by Jill marketer), making full sales, and you help the original product creator build their list if they have created the product properly.

The difference here is that those income claims and graphs, etc can be traced back to the original product owner so you may legally be allowed to keep them on your site.

I'm not a lawyer, but I believe this is one thing that separates the two. It is more of a gray area in this scenario.

But with PLR that you buy and sell as you own it, there is a much clearer line.