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Setting Minimum Prices For Your Digital Product - What's The Real Truth?

by Craig Kaiser
6 replies
Hi Guys,

I was doing a search for a particular product recently to see what kinds of prices people were selling it at. I needed something for an OTO for a project of mine and I had a product I thought was a good fit, but wanted to see what I should price it at.

I used the DogPile search engine, and it found something from a yahoo search that turned up a site dedicated to selling virtually every digital product I've ever seen at around a buck. Even has a domain name describing it.

That got me to thinking, if you create an original product and provide resell rights, how can you prevent people from selling the product for a buck?

I don't want to get into the whole "discounting & devaluing" debate, because If the terms allow it, I don't see what the problem is, but can you actually set the price limits in the terms?

I've heard both sides of the story. Some say you can legally set the minimum price in your terms and others say you can't.

What's the real scoop? Anybody know?

Craig
#digital #minimum #prices #product #real #setting #truth
  • Profile picture of the author Ben Gordon
    You can if you sell PLR. You simply say that you require the customer sells the product at a minimum of $xx.
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  • Profile picture of the author kindsvater
    I'm not sure the Supreme Court knows! Complex topic.

    But here are my general rules of thumb:

    1. One cannot directly impose a mandatory minimum price, but

    2. One can revoke a license to resell if a minimum price is breached.

    So you indirectly accomplish what you cannot directly do.

    If you sell resell rights you are really selling a contractual license for someone else to sell your copyrighted product. This is where having proper legal terms can be very important. You want to be able to revoke the resell license and be able to enforce your rights.

    However, as you know, when it comes to digital products, especially IM products, this can be extremely difficult to enforce.

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    • Profile picture of the author Craig Kaiser
      However, as you know, when it comes to digital products, especially IM products, this can be extremely difficult to enforce.
      Yeah, true.

      And there's no real way to tell if a site like the one I accidentally came across is selling your product for cheap, like a buck, like this guy is doing. There's probably a lot like that out there.

      I guess If you create a resell rights product, that's just going to have to be something you have to live with and hope you make your money on the initial release of the product.

      That happened a lot to me with my graphics products I released in the past.

      I really don't mind if I create a resell rights product and sell it for, say, 10 bucks, then have others later selling it for, say 5 bucks, because I know that's par for the course for resell rights products, but this guy's site really irked me because he reminded me of all the undercutter sellers that flooded eBay a few years ago, selling everything for 99 cents, before eBay banned digital products.
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  • Profile picture of the author Ben Gordon
    Yeah, that's the beauty of PLR. You can create your own licenses, restrictions, allowed/disallowed things, etc.
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    • Profile picture of the author Sandor Verebi
      Originally Posted by Ben Gordon View Post

      Yeah, that's the beauty of PLR. You can create your own licenses, restrictions, allowed/disallowed things, etc.
      Hi Ben,

      This is so, if you are the creator of the PLR in question.

      But, if you purchased the PLR from the creator for reselling purpose, then you required to keep yourself to the condítions he/she supplied with that product.

      One more thing: the copyright remains at the creator.

      All the best,

      Sandor
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