Have you ever seen the movie “Donnie Brasco”? It’s a great Mafia movie – I highly recommend it.
In that film, there’s a scene where a group of characters are discussing their difficulties in earning any sort of real money. One of the characters finally says something to the effect of: “The problem is this city. Up here, you’ve got five hundred Wiseguys all chasing after the same nickel!”
Hmm… sounds a lot like the internet marketing game!
One of the main problems that a lot of marketers face, especially newcomers to the field, is that there are quite literally thousands of marketers all chasing after the same nickel. The reason for this is that there are an awful lot of marketers out there, and not nearly as many product developers. So, for every unique product that comes along offering re-sale rights, you’re sure to most often find a veritable army of marketers all promoting it. They’re all trying to sell the same product – they’re all chasing after the same nickel.
Of course, if you’re one of hundreds, perhaps even thousands, of people all promoting the same product, the chances that you’re going to make a sale, as opposed to one of your competitors, is severely limited. There’s a good chance, in fact, that if someone is even exposed to your sales copy, they’ve already seen the product offered somewhere else and have either already purchased it, or long since decided that particular product wasn’t for them.
This is why major product distributors bend-over backwards to obtain total exclusivity on a product. Very many wholesale distributors, for a lot of products in the retail world offer at least regional exclusivity to their clients. The retailer, when signing a contract with the distributor will receive geographical exclusivity, or at least semi-exclusivity to the product provided by the distributor. This means that once the contract is signed, the distributor will refuse to sign any other distribution deals with any other retailer located in the first retailer’s area. Or, they will severely limit the amount of retailers in that area that they will distribute to. So, as long as the contract is valid, the retailer is assured that anyone in his or her area wishing to purchase the product must come to them to make the purchase.
And, this brings us around to a hard and fast golden rule for any type of marketing, it goes like this:
The more control you have over a product, the more money you can make with that product.
Take the fictional product of the “widget”, for example. If there is a demand for widgets, you can earn some money by signing up as an affiliate marketer for someone who is selling widgets. Let’s say that each widget sells for $20.00, and perhaps you’ll get as much as, let’s say, 50% of each sale. Now, let us also say that with all of your marketing efforts, you’re able to sell 100 units in total. Congratulations! You’ve just made $1,000.00! Not too shabby.
The problem is that the person who you’re an affiliate for – who had more control over the product than you did – also made $1,000.00… and you did all of the work for them! What’s more, they’ve also added 100 leads to their list that they can use to sell future products to and make even more money.
So, let’s say now that instead of simply being an affiliate, you’ve actually purchased the re-sale rights to the product. You now have much more control over the product. You sell the same volume from the same marketing efforts, and now you’ve doubled your earnings with practically the same amount of work. Plus, you’ve added a bunch of leads to your list that will boost future sales. More control over the product = more money.
So, re-sale rights seem like a sweet deal, no? Well, they are. But, keep in mind that the person who you bought re-sale rights from – a person holding master resale rights to the product, thus being a person with even more control over the product – probably sold you those rights for at least twice what you were selling your widgets for! And, he probably sold those rights to three times as many people as you sold a widget to. You got $2,000.00 and 100 leads out of the deal, but he or she got $12,000.00 and 300 leads!
And, it keeps going like that – up and up. More control brings greater reward. Right up until you reach the top of the pyramid, which is developing your own unique product that you hold sole, universal rights to. If you do that, there’s no greater control to be had, and no greater benefits to be realized.
So, here’s one of the biggest secrets of internet marketing: 100% of the top earners in internet marketing either develop the majority of their products themselves, or they pay good money to contract a developer to develop it for them and provide them with sole, universal rights to the product. Either way, they completely control the product.
Of course, you might not have your sights set on earning millions of dollars. Your goals might be more conservative. You might just be wanting to earn a decent amount of money, but you don’t really need luxury yachts or a 17,000 square foot mansion on a 500 acre estate. So, it’s not imperative that you have absolute, total control of an entire catalogue of products. But, the rule still applies: If you want to make more money, gain more control over the product.
If you’re not happy with the money you’re making as an affiliate, look to purchase re-sale rights. If that’s still not good enough, look for master re-sale rights. Still not good enough? Hunt around for private-label rights. Etc.
Now, what does this all have to do with the Mafia gangsters who were all “chasing after the same nickel”? Well, if you’re marketing as an affiliate, or reseller, or in any capacity where someone else has more control over the product than you do, then you’re chasing after the same nickel as other marketers. And, the more of you out there that are chasing after the same nickel, the harder it is going to be to get your hands on that nickel.
To change this, simply increase your control of the product. The more control you get, the fewer marketers there will be chasing after the same particular nickel that you are. And, the greater the chances that it’s going to be you that actually grabs that nickel.
If you’re not yet in a situation where you’re comfortable with developing your own products, there’s still some things you can do. Look for re-sale rights to products. Re-sale rights give you more control than an affiliate agreement. Master resale rights give you more control than regular resale rights (you can re-sell the re-sale rights) and private label re-sale rights give you more control than master re-sale rights.
But, just as importantly, look for deals with a high level of exclusivity. If you find a master re-sale package that thousands upon thousands of other people are marketing, it’s probably not as good as finding just a regular re-seller package that only a few people are currently marketing – as long as the demand for both products is comparable.
If you can find a private-label deal where the provider is severely limiting the number of packages sold, you’ve hit the jackpot.
I’ll give you a real world example of one such offer here. However, don’t get too excited about it. Depending on when you read this article, the package is very likely to be sold out already. But, just so you can see how it works, I’ll provide the example:
Very recently, EII E-Books offered private label rights to an e-book titled: “5 Simple Home Businesses You Can Start Today From Your Very Own Home” And, they limited the amount of the private label packages to only 25! So, once only 25 people have purchased the private label rights to that e-book, they’ll never sell the private label rights to anyone else ever again!
This is absolutely HUGE for internet marketers! Why? Because: (1) Private label rights gives you an incredible amount of control over a product. And, (2) by limiting the availability to such a miniscule number they’ve made the product highly exclusive. And, the more exclusivity there is, the less people there will be chasing after that same, particular nickel!
So, this is an extremely great deal for marketers: A high amount of control over the product, and high exclusivity. Think about it: If you have private label rights to a product, you’re able to sell the master-resale rights to that product under your very own brand. Do you remember our example marketer above that made $12,000.00 from selling you just the regular re-sale rights to the product you sold to make $2,000.00 from? Well, imagine how much money the person who sold him the master re-sale rights made on that same deal!
With the “5 Simple Businesses” example of above, anyone who wishes to obtain the master re-sale rights to that particular product will have to go to one of a maximum of only 25 sources in the entire world! If you were one of those 25 sources you wouldn’t be just one member of an entire army of marketers all chasing after the same nickel, you’d be one of only 25 people in the world chasing after the same stack of hundred dollar bills! Your chances of earning real, large money would increase astronomically.
It’s just common sense really. Would you rather be one of those 25 sources that provides 100% of every copy of that product that will ever be sold anywhere on the planet at any time? Or, would you rather be on the opposite end of the control chain – one of any number of affiliates marketing a product for one of any number of marketers who bought the resale rights from one of any number of other marketers who bought the master resale rights from one of those 25 sources? Which end of the control chain in that scenario do you think is going to see the greater profits?
So, remember those two import factors: Try to gain as much control over the product as you can. And, look for the greatest exclusivity available.
About the author:
Dustin Ward has over twelve years of marketing and product development experience, with almost 10 years of internet marketing experience. He has authored a number of E-Books and has published hundreds of articles. He is currently a featured contributor at: Http://Blog.EarningInternetIncome.Com which features daily insider marketing and money-making tips and a host of valuable resources for anyone who’s interested in earning income from the internet. He is also a featured author at EII E-Books http://ebooks.earninginternetincome.com
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