8 Key Success Factors For Selling Licensed Information Products

Selling a licensed information products offers you the opportunity to build a profitable business without having a product of your own. You don’t have to settle for commissions on sales of affiliate products, even though selling an information product to which you have “Resale / Reproduction Licence” is much like affiliate marketing, with a few key differences.

With an affiliate product you get nothing but a commission for your efforts – you do not gain any customers of your own since they are passed on to the seller.

With a licensed product it’s true you will have to do more work – you will need your own sales page, you will collect the money, you will deliver the product to them, you will also be responsible for providing customer support in most cases – although this is usually limited to sales and delivery of the product, not to the technical aspect of the product…

But the most important point is that you are building your own valuable customer base for your business.

Now there is never a sure way to succeed, but always a sure way to fail. Success cannot be guaranteed but there are some things that you can do to greatly increase your chances of success.

Let’s first look at the fastest way to fail so we can get that out of the way. The fastest way to fail is to do little or nothing at all. The product can sit there on your pc or desk, and if you don’t attempt to do something with it, you will fail. That is true of any business.

With that said, let’s start looking at how you can succeed.

1. Explore the Market.

It isn’t wise to buy into a product that is suited or targeted to a niche that you know little or nothing about. It could very well be an unprofitable niche or the product could NOT be what that niche wants. So before you purchase the licence, take a look at the market and the product and try to determine whether or not it could be profitable.

2. Test the Market.

If you have a hard time determining what a niche wants from the popular forums within that niche, you may need to run some tests before you purchase the licence. Find a related or similar affiliate product, that you do know that the niche wants or needs. Sell it using Google AdWords, build an opt-in list from that traffic, and then offer some free gift for those list members in exchange for taking a survey.

3. Be Different.

Once you’ve determined that there is a profitable niche and that the product is wanted or needed by that niche, buy it – and then be different. Remember that others are also buying the licence to the product. Make sure that you have a different sales page, and if allowed, a different branding for the product.

4. Spice Up the Package.

If it is allowed, you should definitely offer bonuses to your customers that other resellers are not offering. This makes your product more valuable, even though it is the exact same product. The package is different and valuable – which means more profit for you.

5. Keep On Rolling!

Most products will not be wanted or needed forever – especially when there are multiple people selling it. Make sure you are building an opt-in list, and creating or finding other licensed products that you can sell to your customers later on. Otherwise, you are headed down a dead end street.

6. Know and Follow the Rules.

Some people never even read the licensing agreement, and this is a huge mistake. You need to know what is and is not allowed, preferably before you purchase the product. It is also important to know whether marketing materials will be included in the package, and whether or not you are free to edit those materials.

7. Do Not Buy a Potential Freebie.

An important thing to look for in the resale rights agreement is whether or not the product can be given away for free. If it can, it really has no value to you at all. Avoid purchasing such products.

8. Buy the Resale Rights.

If you come across a great product then perhaps you can also buy the right to resell the resale rights to the product, i.e. you get a Master Licence. If you can resell the Master Licence to the product, i.e. you have an Enhanced Master Licence, this is even better. That way you have 3 products to sell, to both potential customers/users of the product and marketers who market in that niche as well.

As with all things in life, it is the ability to stay ahead of the game that will make or break a business and its profits. True, there are resellers out there who make nice income from selling the ‘been around the block” products but if you are new and not in the know then you could be parting with your money for a product or package that everyone else has!

As always my advice is to do further research. Difficult, I know, in the beginning but if you get a general feel that the product has not been knocking around for years you could be on to a winner.

It is often a minefield out there for people new to the business and more often than not you will be faced with choices of resale packages with cleverly written sales copy, with so many bonuses, etc. Unbeknown to you the package has been knocking around for over 5 years and that sales copy sucks you in and then hangs you out to dry!

In saying all this, the internet is a very big place – a massive market and just around the corner can be your next sale even for the old products. So do your homework!