Master resell rights isn't a pyramid scheme because you buy and sell the rights to a digital product. The rise of courses like The Roadmap to Riches has led to unsustainable marketing by people. This leads to situations like this comment below. It shows how course buyers do not even look at the content and only resell the course to others.
Master resell rights are a type of license that allows you to buy a digital product and sell it to others for profit. This business model lets people who do not have a product to sell become entrepreneurs. MRR is in high demand due to the potential profitability of the business model. However, it hinges on your ability to keep reselling the product to other people. Additionally, you're not allowed to sell the product below a certain price to avoid crashing the market.
Many people doubt MRR's business model, sustainability, and ethics. For example, Hannah Alonzo says MRR is unsustainable. She draws a scenario assuming that everyone can sell MRR at a 100% success rate. If you sell to 5 people, and they each sell to 5 people, 13 iterations of this would exceed the world's population.
I have been making money online since 2014 in various niches, including selling products. So, I know how hard it can be to use paid ads to stand out against competition—even when you're not selling the same product as others. In this article, I'll discuss both sides of the business model, comments on MRR, and whether it's a great way of making money online.
Why Do People Think Master Resell Rights is a Pyramid Scheme?
MRR is not a pyramid scheme because you're selling a product. However, people confuse MRRs with pyramid schemes because the way you make money is by selling an MRR as a course, which customers can then sell, which appears like recruitment. This creates a misconception because in MRRs, you only profit from your own sales, and there are technically no downlines or uplines. In pyramid schemes, you earn from the amount of people you recruit, and you can earn more from your downline's performance. However, this is illegal in many countries and unsustainable as you will run out of people to recruit. Here are some points on this:
- Many are skeptical of the sustainability and ethics of reselling MRR products. For example, some MRRs let you rebrand the content. However, positioning yourself as an expert without actual skills is an ethical concern.
- There are no pressures to sell the product. You can use the product to improve yourself or sell the rights to others as much as you want.
- People market MRR courses on Instagram and TikTok through questionable means. Many make income claims without proof and rely on FOMO.
MRR is not an MLM, but it skirts between pyramid schemes and MLM practices. It's a cycle of selling a product until saturation sets in, and someone's left holding the bag. However, with MRR, you only profit from your own sales and performance.
Top Comments on Master Resell Rights Being a Pyramid Scheme
CC Suarez says MRR is a scam and misleading. She explains that MRR involves buying a course for a one-time fee. This includes the right to resell the course for 100% profit. This is misleading and oversimplifies the expenses involved and relies on selling tactics often seen with MLMs. She advises people to be wary of this MRR for its unsustainable and unethical practices.
Hannah Alonzo says MRR is becoming a pyramid scheme. This is because people focus on selling the rights to a course rather than its content. She explains that many people promote MRR on platforms like TikTok, raising red flags. Most emphasize their quick profits without clear information about the course. Hannah says the business model is unsustainable and relies on perpetual sales. She adds that market saturation will occur, and latecomers will find it hard to sell to others.
Top Comments on Why Master Resell Rights Isn't a Pyramid Scheme
Zach and Hannah Pippins say MRR is not a scam, as it provides a legitimate opportunity for people. MRR allows people to start a business without making their own products. Zach and Hannah clarified that MRR is not an MLM, as there are no uplines or downlines. They add that the business model's value is in educating and supporting people.
Chalene and Brock Johnson say MRR is a legitimate concept but question how it's marketed. They point out that many people sell MRR products without understanding the content. This raises questions about credibility and ethics. The Johnsons say MRR provides people with a low-cost entry into digital marketing. However, it may not be sustainable in the long term. They suggest thorough research on MRRs that align with your goals rather than hype.
3 Differences Between Master Resell Rights and a Pyramid Scheme
Real-Life Experiences of People Doing Master Resell Rights
This Reddit commenter shares their negative experience with Master Resell Rights (MRR). They state that most people, including themselves, were only reselling the course. Many were not creating their own products to sell. They felt uncomfortable with the pressure to use false income claims to attract customers. Additionally, they found the ongoing costs of required tools and subscriptions unsustainable. The commenter believes the model will become oversaturated, making it hard to sell. They argue that success depends on having a large following, which they didn’t have.
Another Reddit commenter has taken an MRR course and says it's not a scam, as you get a product. They add that the course has quality information for beginners and does have value. However, they believe that the reselling aspect of the course was what people focused on more.
Can Master Resell Rights Courses Help You Succeed?
Yes, master resell rights courses can help you succeed if you're starting out or don't have a product to sell. Buying a course will not guarantee your success. You can use MRR courses to learn skills and resell the course to others. However, you must work to build your credibility before selling MRRs to others. To build credibility, put your face on your product and make it easier for your audience to reach you by having active socials and good customer service. Your audience's increased trust mitigates the unethical views that MRR receives and adds legitimacy to you.
You must do extensive research to avoid getting scammed when purchasing MRRs. Look into the seller's background, sift through reviews, and check the product's quality. Additionally, you should read through the terms of the MRR product to avoid legal trouble.
MRRs can help businesses by providing ready-to-use products like e-books and blogs. This lets them focus on selling and marketing rather than product creation.
Why Choose Local Lead Generation as a Legit Online Business
Master resell rights offer the potential for quicker product acquisition and resale. However, many people online question the ethics of MRRs and their scalability. In local lead generation, you'll provide leads and traffic to local businesses. You'll encounter less market saturation as businesses will always need more leads.
MRRs face challenges like scalability, time consumption, and product ownership. Additionally, many discussions online link MRRs to scams and pyramid schemes. This makes it difficult to market your products. In contrast, when doing local lead generation, you create sites where you have full control. There's less competition as you're targeting localized niches, making it easier to scale.
Local lead generation involves creating websites that rank on search engines like Google. Once these sites generate leads, you can sell them for $20 to $500 or rent the site out for $500 to $2,000 monthly. The best part is you own these sites, and you're providing a legitimate service to your clients.
I have over 50+ of these sites in various niches like tree care. Together, these make over $52,000 monthly in almost passive income. If you're looking for an alternative to MRR, try local lead generation instead. You'll provide a service that businesses need from a site that you own.
