There’s been lots of feedback for Private Label Rights for SmartDD LITE. The way I always look it is, for every 1 person that makes a comment, there’s 100 others thinking something similar.
So there have been suggestions in pricing going from $18 (!) all the way up to $197.
The figure that Paul and I had in mind was $297 per licence which I mentioned earlier this year (keep reading, that’s not the price we’re going to use). With a little effort, you could start to see a return on your investment within a month or less depending on how you approach it.
The reason we chose that price was because:-
#1 – It would remove those people who weren’t serious or who “don’t get it”.
#2 – It would increase profitability for those people who *are* serious as they would be loathe to sell at ridiculously low prices.
But…
Knowing that $297 was a little bit of a shock for *some* people, even though it’s a sure fire way of keeping the price and the profits up for those that buy, we decided to listen to what people have said, and so we’ve decided to consider a lower price
And another but…
Rather than keep the licencing fairly loose while selling at $297, if we’re going to sell at the lower price, then we would do what some people have suggested, and put some provisos in the licence to make sure that people don’t shoot themselves and other buyers in the foot.
I would like to point out the natural and inevitable conclusion of a price war between two (or more) sellers.
You BOTH go out of business, and the customer can’t get what they want any more.
Nobody wins. When the dust settles, the final seller is making pennies on their sales, and the market has been trained to expect a very low “going price”.
Been there, done that, never going there again. It’s a fools errand.
I’d also like to do a bit of explanation here too.
It seems that some people don’t understand the sometimes subtle difference betweeen Resale Rights, Master Resale Rights and Private Label Rights when applied to digital products.
|
Rights Meanings
Resale Rights (RR) typically allows you to resell the product, but not confer the rights to resell onto your customers. So you can sell, but they can’t.
Master Resale Rights (MRR) typically allows you to resell and pass on the rights to resell to your customers and so on.
Private Label Rights (PLR) typically allows you to resell the product, rebrand it, call it your own, but doesn’t allow you to sell PLR yourself. Sometimes you *do* have the rights to resell with PLR.
White Label Rights (WLR). Quite rare, but I thought I’d include this. Typically, licencing of the product is held by the product owner and the reseller is granted a set number of times they can resell to their own clients while rebranding the product so that it looks like their own.
This usually applies to service type of products (but not always) such as an autoresponder service you can sell to your client as if it were your own. To the client it looks like it *is* your product as it’s often hosted on your domain.
|
Okay?
In order, MRR will see the price of a product plummet to a dollar within a week (the bottom feeders as someone mentioned), RR will usually see the product keep its price, although you are sometimes allowed to give the product away which can be useful as a list builder in giveaways etc. Because new customers can’t compete with you by reselling, the price doesn’t come down.
PLR normally sees the product hold its price unless the right to sell PLR is given in which case like MRR it quickly plummets to a dollar.
WLR products will always hold their price as it’s controlled by the product creator.
So those people that bought Resale Rights for SmartDD LITE at a snip way back in April should have made their money back many times over because of their customers inability to resell and compete with them. (If you didn’t, what do you think you’re doing wrong?)
This offer is now for PLR, which as you can see above is quite different.
Taking on board what people have said, here are my provisos with PLR for SmartDD LITE which differ from normal PLR.
#1 – You must rebrand.
#2 – You must not use my name (or Paul’s) or mention SmartDD or SmartDD LITE.
That’s it. That will hold the price for you and weed out the bottom feeders.
To rebrand, you can fairly easily use a text search and replace, and do a rename in all the PHP files, and in the docs. You might have to edit a few screen shots, or do a few yourself. Additionally you could tweak the CSS files to change the colours and layout.
Alternatively, you can get someone on ScriptLance to do a more professional job for you including a complete redesign of the appearance probably for less than $100. Which to my way of thinking is a lot less hassle.
A few other thoughts.
I know some people will say to themselves “Well what’s the value of a product like this given the market – isn’t it over saturated?”
My answer – Nope the market isn’t over saturated. The market is HUGE and growing bigger every day, and I don’t have the resources to cover it all. If you really think it’s over saturated, do a bit of promotion for SmartDD and see what happens. 😉
Here’s an example.
The other day while on Tim Knox’s blog, I saw a post by Tim answering a subscriber question which showed perfectly how a lot of people still don’t know anything about digital delivery and how it works.
Just because *you* may know all about digital delivery (or any other subject) doesn’t mean that everyone else does. We all make the mistake of thinking something is common knowledge just because we know it and the people we hang out with know it too. That’s not true.
And we all undervalue the information in our heads when in reality it’s a gold mine if handled properly.
Anyway, back on track and let’s get this ramble finished.
Your comments made me stop and think about pricing. I sort of expected that.
I had a chat with Paul and we don’t want to give PLR away. But by the same token we don’t want to make it so expensive that no-one buys.
Going back to the value we believe SmartDD LITE is worth, Paul and I expected total revenue from the sale to be about $3,000 – that was our target – $297 x 10.
We’ve come to a compromise. We’ve made some concessions. You’ve read the two provisos we’ve added above.
We’re going to run a “nickel” sale for PLR. We’re going to start the sale at a much lower price and we’ve also halved our revenue target.
But, the incremental price isn’t going to be a nickel. We’re going to make it higher than that.
We’ve decided to sell 20 copies instead of 10, thereby reducing the cost of each copy.
As usual, first in gets the best price, but the final price on the 20th copy still won’t be outrageous by any means. We’ll run the sale until all copies are gone or 48 hours have passed, whichever comes first.
If you’re interested in this, stay tuned. I may throw in a couple of other nice little freebies that will make you a very happy bunny, so let’s wait and see what happens.
-Frank Haywood
P.S. I know I said I’d run it on the 16th, but I’ve had a nasty end of Summer cold that’s knocked me for six and I haven’t been able to trust my brain while I’ve been taking Ibuprofen. While it makes me feel better, it always wrecks my ability to think clearly, so I don’t like to take any chances…
