Why Sell High Quality Products For Next To Nothing?

by Jason Johns 15 replies
Here's a question for you all, maybe you can help me understand.

What is the mentality behind discount marketers who buy high quality products with resale rights and then sell them for $3 or less rather than sell them for a decent price?

Are they unable to sell these products for a decent price?

Because as soon as these people get their hands on a new PLR / MRR release and sell it for such a low price it completely devalues it for everyone else who is selling it.

As an aside - is it legal / allowed to put something in the rights.txt of PLR / MRR products I release saying that this product is not allowed to be sold to certain marketers? I.e. Explicitly name them and state these people are not allowed to sell this product?

All the best

Jason
#main internet marketing discussion forum #high #mrr #plr #products #quality #sell #selling products
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  • Profile picture of the author NickMarks
    Depending on the niche, most markets can be sold high ticket items. The marketers who sell off the product for $3, really don't know what they're doing.. If I had rights to a product that other people are selling for $3, I can still sell it for $50, $100 or what ever. You just need to have good marketing.

    ""As an aside - is it legal / allowed to put something in the rights.txt of PLR / MRR products I release saying that this product is not allowed to be sold to certain marketers? I.e. Explicitly name them and state these people are not allowed to sell this product?""

    You can do what you want. YES, you can. You can even say don't sell this product for less then X.
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    • Profile picture of the author Didier Faucher
      Originally Posted by Jason Johns View Post

      As an aside - is it legal / allowed to put something in the rights.txt of PLR / MRR products I release saying that this product is not allowed to be sold to certain marketers? I.e. Explicitly name them and state these people are not allowed to sell this product?
      Originally Posted by NickMarks View Post

      You can do what you want. YES, you can.
      You can even say don't sell this product for less then X.
      - Not sure. Wouldn't it be a "refusal to deal" case?

      Also, doing that won't make you friends with these sellers,
      and maybe also with people who know them and like them...

      - About the price, no, you can't force to sell for more than
      a certain price.

      Didier
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      • Profile picture of the author NickMarks
        Originally Posted by Didier Faucher View Post

        - Not sure. Wouldn't it be a "refusal to deal" case?

        - About the price, no, you can't force to sell for more than
        a certain price.

        Didier
        Umm, the way I see it is, the creator makes the rules. If I created a PLR, or resell rights product, I can put any rules on selling the product that I would want. Such as, you can't sell this product on ebay, or you must sell this product for $20 or more. I see these kinds of rules on resell rights all the time. Maybe the creator of the product would just need to note this on the sales letter that sells the rights, so it's very clear before they buy. But, I don't see any problem with it, since the creator can do what they want with it.
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        • Profile picture of the author Didier Faucher
          Originally Posted by NickMarks View Post

          I can put any rules on selling the product that I would want. Such as, you can't sell this product on ebay, or you must sell this product for $20 or more. I see these kinds of rules on resell rights all the time.
          I know that in France it's not allowed.

          I already asked here some months ago, and members who seem to know
          the law in USA, UK, etc. told me that's the same in their countries.

          But maybe you're right... I never tried to find a text law to confirm that.

          Didier
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        • Profile picture of the author Kim Standerline
          Originally Posted by NickMarks View Post

          Umm, the way I see it is, the creator makes the rules. If I created a PLR, or resell rights product, I can put any rules on selling the product that I would want. Such as, you can't sell this product on ebay, or you must sell this product for $20 or more. I see these kinds of rules on resell rights all the time. Maybe the creator of the product would just need to note this on the sales letter that sells the rights, so it's very clear before they buy. But, I don't see any problem with it, since the creator can do what they want with it.
          Hi Nick

          Not sure of the rules in Canada etc, but in the UK it's known as price fixing and isn't allowed.

          You can "suggest" a price and hope everyone plays fair, but unfortunately it doesn't always happen.

          Nothing to stop sellers from saying they can't be sold on auction sites, but unfortunately there are enough scumbags out there who ignore this rule
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        • Profile picture of the author James Turner
          Originally Posted by NickMarks View Post

          Umm, the way I see it is, the creator makes the rules. If I created a PLR, or resell rights product, I can put any rules on selling the product that I would want. Such as, you can't sell this product on ebay, or you must sell this product for $20 or more. I see these kinds of rules on resell rights all the time. Maybe the creator of the product would just need to note this on the sales letter that sells the rights, so it's very clear before they buy. But, I don't see any problem with it, since the creator can do what they want with it.
          As a product owner you can set as many rules as you like, the problem is enforcing them in a worldwide marketplace.

          James
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          • Profile picture of the author Roy Carter
            Kim - Is that really the case? Sheesh! Would it come under the 'price fixing' rule to say, "You can sell it for any price you like, but the minimum price you are allowed to sell it for is X"?

            I'd want to take Nick's stance. As the creator of the product surely you should be able to protect it from being sold at stupid prices?

            Roy
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            • Profile picture of the author Kay King
              That's why you will see the term "suggested retail price"....

              Think about it. If you have a high quality product, sell it through affiliate networks. Don't automatically jump to RR and MRR...

              There are reasons to sell RR and MRR:

              1. Because the product is loaded with YOUR links or backend offers (RR and MRR can't be changed without permission).

              2. Because the product is toward the end of its shelf life and there will soon be an "upgrade"...

              2. The seller can sell the RR or MRR offer at a higher price as an immediate upsell to those interested in buying the product.

              When you sell the RR or MRR to your product, you should expect the price to fall. You are selling "rights" - trying to also maintain control is an exercise in futility.

              PLR is totally different as it allows any changes the buyers want to make. It is designed for "selling rights". You can put some terms such as "no reselling" on the sale of PLR - but whether it's enforceable is another question.


              kay

              As the creator of the product surely you should be able to protect it from being sold at stupid prices?
              Of course you do - so don't sell the rights to your valuable products! Sell the rights only to products where increased exposure will help you - the original seller.
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              • Profile picture of the author Roy Carter
                Good post Kay.

                Glad I don't sell rights to any of my products really (at least I haven't as yet).

                Roy
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    • Profile picture of the author ripsnorta2
      Originally Posted by NickMarks View Post

      You can do what you want. YES, you can. You can even say don't sell this product for less then X.
      I don't think you are allowed to do this in Australia. Even if it technically isn't classified as price fixing, it comes pretty darn close. The authorities here don't just go after the big companies that do price fixing. They also go after the small players.

      Does the US have the same rules?
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  • Profile picture of the author John Taylor
    Jason,

    Perhaps the pile it high and sell it cheap approach is working
    for them as they have used the tactic to build a list of buyers;
    and those buyers continue to buy all the new products that are
    sold at knock down prices.

    Yes, it devalues products for the resellers and, as a results many
    people, myself included, are no longer willing to invest in RR & MRR
    products.

    If you want to mainatin control of the price of your RR & MRR
    products, then you must control the sales process. Following a
    similar discussion initiated by Allen Says some time ago the Resale
    License Manager
    script was developed so that product publishers
    can sell wholesale licenses and yet retain control of the product
    price.

    John
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    • Profile picture of the author lakshaybehl
      Having something of value and less price adds customers into your sales funnel... so you can sell 100 dollar , 500 dollar or 2000 dollar products on the backend.

      These are customers that have alreaedy taken the credit card out to pay to you. Best for quick list building.
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      • Profile picture of the author MaskedMarketer
        Originally Posted by lakshaybehl View Post

        Having something of value and less price adds customers into your sales funnel... so you can sell 100 dollar , 500 dollar or 2000 dollar products on the backend.

        These are customers that have alreaedy taken the credit card out to pay to you. Best for quick list building.

        Very good point and good strategy too.

        Selling many products at a low price can have benefits. It was the strategy of one of the most successful companies and the richest man in the world at the time, Walmart and Sam Walton. It worked for him.
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  • Profile picture of the author garyv
    If you know anything about fishing - I like to call these products sold for cheap, the chumbuckets of Internet Marketing. A chumbucket in fishing, is a bucket you fill with bait, then put holes in, and hang over the side of the boat. The smell attracts fish to your boat for easier catching.

    And actually you may find that some of these chumbucket products really do smell!
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  • Profile picture of the author BIG Mike
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    • Profile picture of the author Didier Faucher
      Like John (Taylor) wrote:

      $7 [product price] x (5% of 5,000 subscribers: 250 buyers) = $1,750

      $27 x (0,5% of 5,000 subscribers: 50 buyers) = "only" $675

      1,750 > 675

      Quod erat demonstrandum.

      Didier
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