Failure to comply with the resale rights granted by the seller is illegal and can prove to be very costly. An additional complication is that some sellers place a different interpretation on the meaning of certain categories of resale rights. The only way to be sure you comply is to read the fine print very carefully.

All resale rights products should be supplied with a text file containing the specific rights that the seller is granting. You also need to be aware of some of the most common pitfalls that face users of resale rights products.

Restrictions On The Use Of Resale Rights Products

Read the restrictions placed by originator of the product on your rights to use and sell the product. Some of the more common restrictions include:

* You may not be allowed to give it away.

* Cant sell the product from auction or membership sites.

* May not be sold as a package with other products.

* No alterations can be made to the product.

* The product may not be broken up and sold in parts.

* Resale rights may not be passed on when re-sold.

Common Types Of Resale Rights

* Resale Rights Products that can be sold by the person having resale rights, but the purchaser may not resell the product.

* Master Resale Rights Resale rights can be passed on from one purchaser to another.

* Private Label Rights You can do anything you like with the product itself. e.g. change it, break it into parts, claim to be the author, give it away (PLR products do not automatically have master resale rights)

The above definitions are only intended as a rough guide to give you an idea of the terminology used and you should always read the fine print supplied with your products to ensure that you fully understand what rights you have been granted.

Essential Facts About Using Resale Rights Products

* Could be lots of competition as many others are selling the same product

* Competitors selling at cut prices can ruin your profit opportunities

* The market can already be saturated before you get started

* Avoid products that have flooded the market and try and find ones that have limited distribution

* Combine with other products to create your own unique package

* Customize the supplied mini-site to make it your own unique product

Although there are some serious drawbacks, selling resale rights products is still a viable proposition, as most of the problems can be overcome. The first thing you need to do is get some help in the form of step by step instructions and coaching videos designed specifically for newbies.