Do This - and Destroy Your Resale Rights Business!

There's one thing that's sure-fire guaranteed to ruin your profits on resale rights products more than anything else - price cutting. It has become the scourge of information product sellers everywhere and it seems there's not much that can be done to stop it.

The number one culprit in this is eBay. There are some information and software products on sale on eBay that have starting bids as low as one cent! The reasons that it has got to this stage of undercutting on eBay are:

1. More and more people think it's easy to start an online business and eBay provides the quickest way to get started.

2. No website required, you can have an online business in an hour for less than a dollar.

3. Here's the real kicker - most newbies selling on eBay don't even know what resale rights are. They assume that if they buy an ebook for $2 they can sell it five times for a dollar each time and make $3 profit. They'll undercut the guy they bought it from and make a bit of a profit but they don't realize that in most cases they do not actually have the right to resell the product themselves. If it's pointed out to them they will generally stop if they have sold the product in blissful ignorance, but by then their five customers have the book up for sale again at $0.50!

To maintain your profits and keep you in business, your product must maintain it's perceived value. If you obtain the resale rights to a product valued at $47, don't be tempted to sell it for $17 on the assumption that the lower price will generate more sales. You would need to sell almost three times as many copies at $17 than you would at $47 to generate the same income. It is a myth that more people will buy because it's cheaper, the lower price is seen as a direct reflection of the quality of the product so potential buyers assume that it is less valuable than a $47 product. People will buy good quality information products whether they cost $47 or $17, it just needs to be valuable info that solves a problem, educates or makes money for the buyer.

There's an analogy here with pedigree dogs. Say you are a dog breeder and your dogs normally sell for $500 each but business is slow and you would like to raise some quick cash. You advertise the dogs at $200 each for a quick sale but get no takers. Why? People know that the price of the dogs should be around the $500 mark so assume that if you're selling them off cheaply that there must be something wrong with the dogs. The perceived value of the dogs is high because they are pedigree dogs, people just know that's what they need to expect to pay. It's the same with information products, if you sell a $47 product for $17 it is simply seen as a $17 product - less valuable.

So don't fall into the trap of undercutting prices, nobody wins in the end!

Article by Ian McIntosh. For resale rights to over 20 fresh top quality resale rights, software products and FREE lifetime updates that you can resell, take a look at http://www.resalerightsgold.com.

Please feel free to use this article for any purpose as long as there is a live link to the site.

How Many Sales Have You Made After Your Advertising Campaign?

When you start your online business, you will go through... Read More

URLs Everywhere

Your URL (www) should be everywhere and more. I know... Read More

The Secret Of Focused Responsive List

Once you have decided on your ideal business to create... Read More

Being Part Of Groups

There are many different ways to have fun and socialize... Read More

How The Right Domain Name Can Improve Your Sales

So you're starting a website and have visions of making... Read More

How To Increase Your Web Profits by Cutting the Hype

'Hype' is now an often used slang word which is... Read More

Hide and Seek

What's happening to the personal touch on the World Wide... Read More

Can You Provide an Internet Advertising Solution?

This year, 2005, will see the demise of some well... Read More

Success is a Process, Not an Event

We all need a little inspiration once in a while,... Read More

The Internet F-Word

For the last several months I've been collecting and organizing... Read More

Online Joint Venture Ideas

A joint venture is when two or more businesses join... Read More

Dealing with Refund Requests ? Internet Marketing

I think we all cringe and dread when we open... Read More

Marketing Using Minisites

When it comes to making money online, there are a... Read More

6 Steps to Establish Your Expertise

Like the Internet itself, online marketing resources such as blogs,... Read More

Viral Marketing Strategies

Viral Marketing is allowing people to giveaway and use your... Read More

Learning the Value of an e-Business Website

Starting a business is a huge, but rewarding, task to... Read More

Building An Effective Banner Campaign

Banner advertising can dramatically help you increase traffic to your... Read More

An Introduction to Mortgage Marketing

The other day I had an appointment to meet with... Read More

Growing Your Business On-line: A Fresh Perspective

Rather than thinking about the web as technology, let's consider... Read More

Web Success Secret - Overdeliver

A few days back I got an email telling me... Read More

Product Marketing for Internet Based Home Businesses

All small business owners, especially those internet based, are concerned... Read More

New Product Launch Checklist

Launching a new product or service is an exciting time... Read More

The Right Internet Marketing Articles Strategy is a Game of Links

Do you know the secret or internet marketing strategy behind... Read More

Internet Marketing

What is Internet Marketing?Internet Marketing is application of Internet and... Read More

Using This One Simple Word Helped Triple My Sites Profits

This article is very important.In fact, the chances are it... Read More