Done For You Digital Products With Resell Rights, Is It a Scam? 6 Reasons Why People Think So

December 6, 2024

is reselling dfy digital goods legit

Done for you digital products with resell rights is not a scam, given:

  • they have proper licensing.
  • they are real products and provide value.
  • the product creator is reputable.

There are many legitimate online platforms that offer done-for-you (DFY) digital products. These include Digital World PLR, Entrepedia, and Big Product Store. They have DFY digital products for basic, private label, and master resell rights. This Redditor says that this business model is legit. People can make money if they have the right branding and digital marketing strategy. They can sell simple digital product templates like calendars and planners.

done for you digital products with resell rights legit reddit comment

However, many people (like this Reddit user) think this business model is a scam because of:

  • low-quality products
  • fraudulent resell rights agreement
  • the pyramid-like structure of product sales
done for you digital products with resell rights a scam reddit comment

A done-for-you digital product is a ready-to-sell digital item whose content has already been completed. You can sell it immediately after purchasing the resell rights of the product. Some of the most profitable DFY digital products with resell rights are digital courses, e-books, and software. Accordingly, There are three types of resell rights you can buy:

  • Basic Resell Rights (BRR) - It's when you gain legal rights to resell the product to customers. But, your customers can't resell the digital products. You also can't modify the products in any way.
  • Master Resell Rights (MRR) - It's when you gain the distribution rights to resell and modify the product. However, this customization is limited. You can create digital product bundles or set the pricing of some MRR products. You also pass the resell rights to your customers.
  • Private Label Rights (PLR) - It's when you get the rights for product customization and reselling. You also get full product ownership. This way, you can modify the product and its branding in any way. It also gives you permission to the resell rights of your customers.

Kristi Rexhepi, a YouTuber, has achieved significant success selling master resale rights products. She offers a $497 digital marketing course and keeps 100% of the profits from each sale. Kristi generates recurring income from selling DFY MMR digital products.

A Reddit user shared his success story, making $3,000 per month using the PLR affiliate method. He started in January 2024. By June, he had generated $11,000 in profit ($22,000 in total revenue). This Redditor also built a network of 31 affiliates and reached a combined following of 8.4 million. His strategy centered on sourcing high-quality PLR products and creating an affiliate program.

reddit success story for plr product

Starter Story shares that selling digital products averages around 40% in profit margin. Online businesses get higher revenue by upselling. However, products like digital courses are becoming more common. Its high demand drives the rise in resell rights scams. This is the primary reason I switched to a more legitimate business model.

I have been making passive income with this online business for over 10 years. Today, let's talk about why most individuals think done for you digital products with resell rights is a scam. I'll explain the potential legal issues of this model and how to overcome them.

Are Done For You Digital Products With Resell Rights Legit?

Yes, done for you digital products with resell rights are legit, given:

  • the reseller has the necessary resell rights documentation. This includes a valid reseller license and terms of service for the digital product.
  • the creator has proper content ownership. This means that the digital product should be original and not plagiarized. There should be proper copyright for all the content elements (Ex: photos, videos, etc.)
  • the creator has an established licensing structure. There should be a clear definition of what buyers can and cannot do. This includes specific terms about modification rights and distribution channel permissions. It should have an appropriate geographic or time limitations.
  • the reseller complies with the product's privacy policy. This includes guidelines from agencies like the Federal Trade Commission and many more.
  • the reseller has complete business requirements. He/she should have a registered business with tax compliance documentation.

These Reddit users say that done for you digital products with PLR and MRR are legit. Anyone can resell digital goods, given they have purchased the license for them. The other Redditor describes it as the product creator's way of helping other people.

done for you digital products with resell rights legit reddit comment plr and mrr legit
done for you digital products with resell rights legit reddit comment purchase a license

6 Reasons Why People Think Done For You Digital Products With Resell Rights is a Scam

  • Oversaturated market issues

According to Raket, there are over 15 million DFY digital products in the market. These are mostly private label rights and master resell rights products. It is difficult to resell digital products with almost the same content as others. This means competing with other resellers for the same customer base. Potential buyers might think that products with almost the same content are scams.

A Reddit user says that this market is already saturated. It involves selling products that thousands of people are also selling online.

reasons why people think done for you products is a scam oversaturated market reddit comment
  • Quality concerns

Many digital products nowadays are made from generative AI. These include e-books, online courses, printable templates, and many more. Some platform examples are ChatGPT, Claude, and Grammarly. This process creates generic content that is widely available all over the internet. Some digital products are also outdated.

  • Deceptive marketing

Some done for you digital product resellers exaggerate their marketing campaigns. This leads to unrealistic claims that buyers label as a scam. Some examples are "Earn $80,000 monthly without any effort!" or "Purchase this product and instantly make recurring monthly income."

  • The "pyramid" structure

Most people think digital products are a scam because of this income structure. This applies to master resell rights digital products. Take a digital course, for example. When someone buys the rights to resell it, the course creator makes money. And when the reseller sells the product, the course creator still makes money.

This Redditor explains that there are limited people who profit from these products. It includes the product creator and the first people who buy the resell rights.

reasons why people think done for you products is a scam pyramid structure reddit comment
  • Hidden costs

Selling in-demand content is difficult. You are competing with niche-specific content creators. Most sellers spend money on their marketing strategy to drive purchases. This includes paid ads, social media marketing, influencer partnerships, and more. Instead of earning a high profit, some end up losing money.

A Redditor comments that some of these products have hidden fees. Take an online course, for example. After buying the rights to resell it, you might pay for other fees to access the course.

reasons why people think done for you products is a scam hidden costs reddit comment
  • Duplicate content penalties

Search engines like Google penalize websites with plagiarized content. Plagiarism.org states that duplicate content results in a fine of $100-$50,000. When buyers experience this, they tag the products as a scam. The perceived value of the digital product they're selling also diminishes.

What are the Potential Legal Issues of Done For You Digital Products With Resell Rights?

  • Intellectual property risks. You can get fined and incur jail time if the content of your DFY digital products is plagiarized. This includes photos, videos, text, or other elements. Since you're not the product creator, you may not know what content is duplicate. The U.S. Copyright Office in the Library of Congress also reveals that copyright infringement can lead to a fine of up to $250,000.
  • Customer protection law challenges. When you sell products, you also handle customer support and other consumer complaints. Legal issues arise when you don't resolve customer concerns or make unrealistic claims. The Federal Trade Commission (FTC) can sanction civil penalties, injunctions, or consumer restitution. This business model goes beyond selling the resell rights for DFY digital products.
  • Tax avoidance instances. This happens when the reseller does not know of tax rules for digital products. Avalara states that digital product sales tax varies by state in the US. Economic nexus laws require collecting sales tax once you hit certain revenue thresholds. For digital products, you need to collect tax based on the customer's location. For example, digital goods are taxable in Arkansas. Alternatively, electronically delivered software is exempt in Colorado.
  • Privacy and data protection breaches. Most done for you digital product purchases require collecting customer information. This includes customer payment and personal information. When you don't have proper cybersecurity measures, you risk experiencing information theft. This leads to privacy law violations. For severe violations of the GDPR, you can incur a maximum fine of €20 million.

How To Protect Yourself From Fraudulent DFY Digital Products With Resell Rights

  • Research the digital product creator's reputation and background.
  • Vet DFY digital products before purchasing resell rights. Verify source materials. You should only buy quality products that provide value to customers.
  • Look for legitimate buying platforms. Some of the best websites to find good digital products with resell rights are InDigitalWorks, Sellfy, and PLR Database.
  • Check the licensing terms carefully. Seek legal advice from an attorney and review the license terms.
  • Get a signed confirmation of your resell rights. Keep detailed copies of licenses and resale rights.
  • Be skeptical of any promises of quick or easy profits. And, maintain honest marketing practices.

You should also join communities for DFY digital product resellers. This includes Warrior Forum and the PLR & Resell Rights Products Facebook group. There are also membership sites like PLR.me and ResellRightsMastery.

Is Reselling DFY Digital Products a Sustainable Digital Marketing Side Hustle?

Reselling DFY digital products is a sustainable digital marketing side hustle if you find high-quality, legitimate products. This model has low overhead costs, high market demand, and automation opportunities. Your profit margins can range between 50% to 80% of the product sale price. According to YouTuber Robert Delins, it can go as high as 90%. However, finding quality done for you digital products is challenging. There are thousands of digital marketers searching daily. Plus, you need to vet creators and products carefully. If you end up buying low-quality, spammy products, you can lose money instantly.

Why Choose Local Lead Generation Over Reselling DFY Digital Products

Local lead generation offers a more sustainable passive income than reselling DFY digital products. You can ensure legitimate digital goods because you're the one making them. Selling resell rights for done for you digital products is often seen as a scam online. This limits your potential customers. Plus, market saturation is high. Platforms like WarriorPlus and Etsy have 30,000 to over 50,000 shops with digital products.

Selling done for you digital products with resell rights is more complex than it sounds. You have to navigate around copyright, sales tax, and product license issues. You also have limited control over product quality. Most resellers discover issues after purchasing resell rights. Plus, it's difficult to differentiate your product offerings from other resellers. Customers can find the same product cheaper on other platforms.

conclusion lead gen maps

Alternatively, local lead generation assets are much easier to sell. It's because of the high demand for local leads. Plus, you have fewer direct competitors. You also have full authority over your business. Local lead generation entails creating niche and location-specific websites. You rank these sites organically on search engines like Google. When you top the search results, you drive high-quality traffic to your websites. Selling these leads to local business owners gives you up to $2,000 monthly per site.

I've been doing local lead gen since 2014, and I've been making over $50,000 monthly. I get to help local businesses while attaining time and financial freedom.

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Ippei Kanehara
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$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

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