Is Master Resell Rights Profitable? (5 Reasons Why)

October 14, 2024

Master resell rights can be profitable, but success isn't guaranteed. The average MRR reseller earns $500-$2000 per month, with top performers making $5000+. This business model has grown popular due to its low startup costs and potential for passive income. Many are drawn to the idea of selling digital products without creating them from scratch. Resell Rights Weekly found that 73% of successful MRR sellers diversify across at least three niches to maximize income. You can make money with master resell rights by purchasing digital products with resale rights. Then, market and sell those products to your own customers. This allows you to keep 100% of the profits from each sale, as you’ve already paid the original creator for the resale license.

Jonathan Seller made money through master resale rights. This business model earned him 7-figures. Jonathan uses custom Instagram reels to drive sales. He creates informative and engaging reels. These help him stand out in the crowded digital market. Jonathan also builds trust through smaller social profiles. He encourages direct interactions in comments and messages. His marketing strategy includes special offers for YouTube viewers. Jonathan attracts early customers with intro pricing. He also promises high-quality content to drive quick sales.

While master resell rights can be a legitimate business model, it’s not a simple path to riches. Success requires strong marketing skills and the ability to add unique value. A survey shows that only 5% of MRR product resellers make a full-time income from this business model. Many people struggle to make significant profits through MRR alone. Internet Marketing Center found that 68% of new MRR resellers cannot recover their investment within the first year. It’s more effective as a supplementary income stream rather than a primary business.

Over the years, I’ve tried several business models, including master resell rights. Although I was able to earn a quick cash, I had to compete with other resellers who were promoting the same products. That’s why I found a different business model that has low competition and does not rely on constant sales or advanced marketing skills.

In this article, I will discuss the 5 reasons master resell rights are profitable. I will also cover the most profitable MRR products and how much resellers can earn. And lastly, I will introduce a more profitable business model.

1. MRR Gives Immediate Access to Earnings

MRR gives immediate access to earnings because it operates on a direct sales model. 90% of MRR sellers receive payments within 24 hours of a sale. The sellers handle the transaction directly with customers. This eliminates intermediaries and payment processing delays that are common in affiliate marketing. On average, MRR sellers save 15-20% in transaction fees compared to traditional e-commerce platforms. Traditional affiliate marketing often involves waiting periods before earnings are disbursed.

These delays range from a few weeks to several months, depending on the affiliate program's policies. The average wait time for affiliate marketing payments is 45 days. In contrast, MRR allows sellers to access their profits as soon as a sale is made. Studies show that 95% of MRR sellers report higher satisfaction with payment speed compared to other online selling methods.

Affiliate Marketer Brian Brewer points out that a key difference between Master Resell Rights and affiliate marketing is the speed of payment. With Master Resell Rights, you process payments yourself and typically receive the money within a week. In contrast, affiliate marketing payments are slower because they rely on third-party platforms to track sales and process payouts. This often takes two weeks to over a month. Brian sees this faster access to earnings as a major advantage for those seeking quicker returns.

2. MRR Requires Low Initial Investment But Offers High Returns

Master resell rights require low investment but offer high returns through a one-time fee for product rights. Vendors only need a small investment, as products typically cost $50 to $500. After recouping the initial MRR investment, all future sales are pure profit.

Sellers are also free from the constraints of traditional multi-level marketing structures because they operate independently. This autonomy allows for greater control over business operations and profit retention. For instance, when selling an MRR product for $50, the seller retains the entire amount. In contrast, with affiliate marketing, they may only earn a 20% commission, which amounts to $10 per sale.

Online seller and YouTuber Danielle Ryan explains that Master Resell Rights offer high returns by allowing individuals to resell digital products without creating them. This eliminates the time and costs tied to product development. Sellers earn 100% of the revenue per sale. Some reports claim earning thousands quickly, with one claiming $22,000 in 24 days. With fast, large profits, MRR is positioned as a highly profitable way to generate income.

3. Master Resell Products Have Established Market Demand

Products offered with master resell rights have usually already been tested in the market and showed popularity or profitability. A survey by Digital Commerce 360 found that 78% of MRR products are on the market for 6 months before resell rights are offered. As a reseller, you’re not starting from scratch with an untested product idea. Instead, you’re leveraging something that has already shown appeal to consumers. This means:

  • The products have been sold successfully to real customers.
  • There is existing data on customer interest and purchasing behavior.
  • The products have demonstrated their ability to generate sales and profits.

A study by Resell Rights Weekly found that MRR products have an average conversion rate of 2.7%. The high conversion rate shows customers prefer MRR products with market traction. Sellers can check an MRR product's past performance to estimate its profitability. MRR products that have succeeded in the market typically:

  • Solve common problems 
  • Offer valuable information 
  • Provide useful tools or resources

4. You Can Create Multiple Income Streams with Master Resell Products

You can create multiple income streams with master resell products by leveraging existing digital content across various niches and markets. This lets vendors test markets and find profitable niches with minimal upfront investment. Over 70% of online entrepreneurs use resell rights products to diversify their income sources. Businesses using multiple resale models see up to 30% more revenue than single-model ones.

Sellers can integrate these products with other resale models. For instance, you could start by selling MRR products in their original form. Then customize white label products to create your unique brand identity. White label products can increase profit margins by up to 50%. And finally, you can use private label rights to develop fully personalized offerings. PLR products can be customized in over 20 different ways. This approach lets you cater to various customer preferences, price points, and maximize market reach.

5. MRR Lets You Ride Existing Social Media Trends to Sell Your Products

Master resell rights products offer marketers a unique opportunity to capitalize on existing social media trends. The viral nature of social media means that trending MRR products gain traction and interest. On average, content shared on social media reaches 1,000 people within the first hour of posting. The existing hype reduces the effort needed to create awareness and demand for a new product. Marketers can plug into the ongoing conversation and promote their version of the trending product.

The social proof that comes with a trending MRR product is also invaluable. This is because social media popularity among peers boosts a product's credibility and appeal. Products with positive social proof can increase conversion rates by up to 270%. This social validation increase conversion rates compared to promoting an unfamiliar product. 

What are the Most Profitable Master Resell Rights Products To Sell?

The most profitable resell products to sell are:

  • Online courses consistently rank among the top MRR products, with the e-learning market expected to reach $325 billion by 2025. An example is the “Instagram Marketing Masterclass” course. It offers comprehensive training on Instagram marketing strategies. This product is profitable because of businesses’ growing need for social media expertise.
  • Ebooks remain a staple in the MRR market, with the global ebook market projected to grow at a CAGR of 6.2% from 2021 to 2026. The “Make Money With Video Marketing AI” ebook is an excellent example. It capitalizes on the intersection of two trending topics: video marketing and artificial intelligence. This product’s relevance is supported because 86% of businesses use video as a marketing tool.
  • Templates and graphics are also highly profitable because of the rising demand for visual content across digital platforms. The “2400+ courses, tutorials, and videos for rebrand and resell” package from IDplr.com is a good example. This product’s diverse content appeals to a broad audience, increasing profitability.
  • Audio products like meditation guides and language learning make up 12% of profitable MRR sales. The “Mindfulness Meditation Series” is an MRR audio product with 1,000+ positive reviews. Its success stems from the growing interest in mental health and wellness practices.
  • Software and video tutorials round out the list of profitable MRR products. The “SEO Analyzer Pro” software has seen a 25% increase in monthly sales. This is because it capitalizes on the need for effective SEO tools. Video tutorials like the “WordPress for Beginners” series have maintained steady sales. It has an average of 200 purchases per month, due to the constant influx of new website creators.

How Much Money Can You Make with Master Resell Rights?

You can make around $1,000 to $10,000 per month with master resell rights. But this is only possible if you are selling high-ticket items like the Road Map 3.0. Resellers of this course can earn $497 per sale while keeping 100% of the profits. To reach the lower end of the earning potential, a seller would need to make 2-3 sales of this high-ticket item. For the higher end, about 20-21 sales would be required.But, high-ticket items rely on having a loyal audience in a specific niche. Niche Pursuits suggests that a loyal audience of 500-1,000 followers can boost sales.

YouTuber Kristi Rexhepi shares how she earned significant income through MRR products. She kept 100% of the profits from each sale of a $497 digital marketing course.Though she doesn't share exact earnings, this model helped her maximize income. Her success came from automating her business systems. This allowed her to make passive income while balancing other responsibilities. 

Kristi used content creation on platforms like TikTok to attract potential buyers. Email marketing was another key strategy she employed to nurture leads. Kristi built sales funnels to streamline the buying process. She also applied SEO techniques to boost visibility and drive traffic. These strategies let her keep selling the MRR product without making a new course.

A Reddit user shares that they invested $500 in MRR and made $12,000 in three months by reselling two courses per week at $500 each. They quickly recovered their initial investment and view the rest as extra profit. The user also creates and sells additional courses and benefits from being bilingual. This allowed them to sell in both English and Spanish. They express that they are focused on their own earnings rather than what others are doing.

MRR profits 1

However, another user shares that they haven’t made any MRR sales since August. They initially expected to make money but found the market too saturated. Despite this, they gained valuable skills in creating sales funnels and building websites with email campaigns. After nearly three weeks of work, they stopped selling MRR products. The sellers don't regret the purchase but admit the market is tough, and knowing when to quit is key.

MRR profits

What are the Cons of Master Resell Rights?

The cons of master resell rights are:

1. MRR Resellers Lack the Audience and Expertise for Making Profit

Many resellers lack the audience and expertise to make a profit. This issue arises because MRR products are often marketed as quick money-making opportunities. It attracts individuals who may not have established businesses or marketing experience. Lacking these skills stops resellers from creating strong descriptions and promotions. 72% of new resellers struggle with marketing knowledge, according to E-Commerce Foundation.

New resellers struggle to find buyers without an existing audience. The absence of a ready audience limits their ability to generate sales and revenue. Many MRR resellers find it difficult to make a profit, despite the promises of easy income. A survey by NARD found that 61% of new resellers reported earning less than $1,000 in their first six months. In fact, the NARD study also revealed that the average time for a new reseller to break even is around 18 months. And only 30% of MRR sellers achieve this milestone in their first year.

2. You Can't Modify or Customize MRR Products to Get More Customers

Master resell rights agreements often come with strict limitations on product modification. A 2023 survey shows that 78% of MRR agreements forbid product changes. This lack of uniqueness can lead to price competition. A study by the Digital Commerce Institute found that 62% of resellers compete on price when selling non-customizable products.

Sellers will need to lower their prices to attract customers, reducing profit margins. The average profit margin for resellers with strict modification limits is around 15-20%. While digital products with customization rights are around 30-40%.

3. MRR Has Potential Legal Limitations That Can Hinder Profits

Copyright issues are a significant concern with Master Resell Rights products. The original creator keeps copyright ownership, even when granting resell rights. This legal framework means resellers cannot change the product or claim authorship. A study by the Internet Marketing Association found that 92% of MRR licenses prohibit content alterations. They have to sell it as is. This limits how resellers can market the product or make it stand out from others selling the same thing.

Expiration dates on MRR licenses are also a significant challenge. The Digital Products Resellers Association reports that 35% of MRR licenses have a time limitation. If a license expires, the reseller can’t sell the product. This may lead to a sudden loss of income. A case study showed a reseller lost 40% of revenue when several top MRR products expired. 

Is Master Resell Rights Legit?

Yes, master resell rights is legit. MRR allows you to legally resell digital products like eBooks, software, or courses. But success with MRR requires careful product selection and an understanding of the specific license agreements. Although it offers potential profit, it’s not guaranteed path to easy money. Many over-hyped MRR offerings promise unrealistic returns with minimal effort. A survey found that 70% of new MRR resellers quit within the first year. And only 10% of MRR resellers make a full-time income. As a result, frustrated resellers see the business model as shady and a scam.

Master resell rights are not sustainable because it leads to market saturation and devaluation of products. Studies show that 78% of MRR products lose 50% of their value within the first year. There are over 1 million master resell rights product offered by 500+ different sellers online. When many people can resell the same item, competition rises dramatically. Customers become wary of purchasing resell rights products because of over-saturation. This drives prices down and makes it difficult for sellers to profit. Only 5% of resellers consistently report profits over a 5-year period. 

Is Master Resell Rights a Pyramid Scheme?

Master resell rights is not a pyramid scheme, but it shares some similarities that can cause confusion. It allows people to resell digital products and give others the right to resell too. This structure can look like a pyramid scheme at first glance. According to Digital Product Insights, 37% of consumers initially mistook MRR for a pyramid scheme. However, MRR doesn’t require recruiting new members to make money. You only earn from direct sales of products.

The confusion with pyramid schemes affects how profitable MRR can be. Many people think it’s a get-rich-quick scheme. They expect to make lots of money easily. This isn’t true for most people using MRR. The Digital Marketing Institute found that only 12% of MRR practitioners report earning a full-time income from their efforts. Success requires hard work and good marketing skills. Successful MRR sellers spend 20-30 hours per week on marketing and customer service activities. The market can also get crowded quickly. This makes it harder to sell products as time goes on. In fact, the saturation rate for popular MRR niches can increase by up to 50% annually.

Is Master Resell Rights Saturated?

Yes, master resell rights are becoming saturated because many sellers compete to sell the same digital goods at similar prices. This leads to a “race to the bottom” in terms of pricing, diminishing profit margins. The saturation problem worsens because many MRR products are low-quality or outdated. This results in a decrease in profits for retailers as consumers opt out of MRR products. The average return on investment for MRR resellers has dropped from 150% to 80% since 2018. Out of all MRR resellers, only 25% can consistently make a profit.

Master resell rights are not sustainable because it leads to market saturation and devaluation of products. Studies show that 78% of MRR products lose 50% of their value within the first year. There are over 1 million master resell rights products offered by 500+ sellers online. When many people can resell the same item, competition rises dramatically. Customers become wary of purchasing resell rights products because of over-saturation. This drives prices down and makes it difficult for sellers to profit. Only 5% of resellers consistently report profits over a 5-year period. 

What is a More Profitable Business Model than Master Resell Rights?

Local lead generation is more profitable than master resell rights because it offers a more sustainable and scalable business model. Master resell rights limit you to selling a single type of digital product, which quickly becomes oversaturated in the market. This saturation leads to fierce competition and diminishing profits.

MRR comes with potential legal issues and copyright concerns that can hinder your business growth. Resellers struggle to make significant profits with master resell rights because of the lack of uniqueness in the products and the difficulty of standing out in a crowded marketplace.

On the flip side, local lead generation tackles these challenges by giving importance to forging valuable connections between local businesses and potential customers. This model provides a steady stream of leads and clients, making it more sustainable in the long run. Local lead generation allows you to build multiple income streams by creating websites for various industries and locations. Once your lead generation websites are ranking on search engines, they generate passive income with minimal ongoing effort. This scalability is a key advantage over MRR, which requires continuous marketing and sales efforts.

conclusion-lead-gen-maps

The local lead generation model works by creating and optimizing websites for specific local services in targeted geographic areas. These websites then attract potential customers searching for those services online. Once the sites are generating quality leads, you can rent them out to local businesses for a monthly fee. This fee typically ranges from $500 to $3,000 per month, depending on the industry and location. For example, one lead generation website I built in 2015 for around $500 and 10 hours of work has been generating $2,000 per month for seven years. With the potential to build and rank multiple websites, local lead generation offers a significant opportunity for scaling your income.

Follow Me
Ippei Kanehara
Founder/CEO

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

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

His #1 online business recommendation in 2024, is to build your own lead generation business.

Leave a Reply

Your email address will not be published.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}