Resell / Licensing Pricing Question

[kf]

I need some ideas on how to price things for the resell rights and licensing rights market.

First off, I am defining resale rights (aka resell rights, reprint rights) as one-time payment gives buyer (of resell rights) the right to resell the product and defining licensing as buyer (of license) pays a one-time fee and x per copy they distribute (whether they sell it or give it away ... I don't care).

Let's assume a digital product with a price point of $49. Some info I've seen says sell RR at 10-25 x price point.

The product is not in the IM or MM market.

I can sell RR online or, contact potential buyers off-line - in which case I'd anticipate a higher price for the RR and possibly a need to call it 'licensing'.

If you have experience with this kind of pricing, how to set up the deal, what number of RR or licenses are reasonable to sell, etc. I'd really appreciate some ideas.

If you prefer to PM, please do.

Thanks.

[kf]

Hi ... I'm bumping my own thread, possibly frowned upon. However, I did wait 8 days and rather than re-post my question, I'm hoping someone catches it this time before it slides off the front page into oblivion again. Of, course, perhaps it was meant to die a natural death. If so, I'll accept that quietly.

Oh, and here's some subliminal stuff that seems to get the most attention recently so tagging it might get my thread read this time: (guru-bash)(gonna quit soon)(twitter - awesome/useless)(made my first $10 after only 11 months)(offline gold)

... all in jest ...

If someone can help me out with my Internet Marketing related question .. point me to resources ... send me PM, anything ... it would be really appreciated.

Thanks.

[AnthonyWilson]

Hi KF,

I am not 100% sure I understand your question (maybe that is why you have not had much response), but I will have a go:

Taking your example, you have a digital product which retails at $49. If you are going to grant resale rights then in my experience to demand ten times the retail price i.e. $490 is realistic but this is really the top end as far as IM products go and maybe five times is more likely, that is the kind of figure I have paid recently for some quality PLR/Resale items.

I don't know if you could demand more than 10 times the retail value even if it was outside the IM niche becuase if you are selling resell rights then your customers are actually going to be Marketers.

If you were to offer Master Resale Rights (i.e. rights to resell the rights) then you could demand at least ten times the retail value.

There is a paradox that as soon as you offer resell rights the retail value suddenly takes a fall and with digital products the fall becomes a plummet!

Ultimately what you can charge for a product is down to your own marketing skill, experience and reputation within the market place.

I do okay selling resell rights but my approach is different.

[hmigroupllc]

Number one, as with pricing anything, setting it too low is bad.

That said, your resale license fee is really based on the quality of the product. If a person can legitmately sell a product because it is really good content, then your resale license should be priced higher.

Just take a look at the prices of resale products you find elswhere. The ones priced extremely low are usually parts of bundles of junk stuff that you would never use yourself.

Personally, a good starting point for me is three times the sales value of the non-licensed product for PLR. This means, a person only has to make three sales to recover there investment.

Often the price should be higher. But it really depends on the quality.

Wayne Sharer

[kf]

Wayne and Anthony - Thanks for your input. It's appreciated. To clarify - I'm looking for price point, how many licenses should be sold, and - if sold offline - what terms/rights might be given.

I'm also trying to think outside the box a little on other ways to approach this.

Anthony - Care to expand on your comment below?

Originally Posted by AnthonyWilson

I do okay selling resell rights but my approach is different.

[BrenOHara]

Being someone who has worked in the resale rights industry since 2005, and still work with it to this day, it really does depend on the quality of your product.

Personally speaking, I often go 'after' high-end RR, or even PLR, because not everyone is willing to fork out BIG money, I find it a good way of at least not looking like everyone else.

I reckon what Wayne said above is a good move. I normally set my RR at twice the price, and 3 times the price for PLR.

Cheers,
Bren

[Justin Mandel]

Think of it this way...

If you are a customer buying product X for $47 how much more might they be willing to actually pay for RR?

This depends on many factors, but typically in the I'm niche you might be able to upsell someone by offering the RR license for another $47 on top of what they charge.

On the otherhand, for people ONLY seeking out RR in your niche conversions wise you might be able to sell it at 3 to 5 times the regular cost of the product.

Best of Luck!