This is a copy of a reply post to one of a friend of mine's blog but, I figured the "message" was worth posting here too...

Hi Ken!

Sup dude?...

Oddly enough, I was pointed to your blog (this post in particular) by some dork who ripped me off one day in the past, and has started a finger pointing site about just this type of thing (among others).

The background on my experience with him relates to him de-valuing the product that he "stole" from me (by buying it from
himself via a 100% commission sale) then, buying the re-distribution rights on the OTO and, turning around and reselling the product "with rights" for $3, moments after I offered it for around $20 (with rights).

I promised him that I wouldn't name him publicly because he did (reluctantly) pay me the front-end price, after a few emails arguing about it back-and-forth.

I was simply reselling a resell rights product myself, in that case and, I really couldn't care less about what he chose to resell it for but, the issue I had was his "stealing" the product on the front-end by buying from himself (he obviously has 2 PayPal accounts) thus, aquiring it for less than everyone else and, being in a better position to de-value it, than everyone else, because of his lack of initial investment.

Anyway, the point of posting a reply here is to offer some advice (from my own experience) on how authors, programmers etc. can protect their works from being de-valued in this way.

Let's face facts first:

1. "Price fixing" in most Western markets is ILLEGAL. (One cannot "enforce" a minimum resell price, legally)

2. WalMart exists (and thrives), because of this.

3. If the product was really worth more... (as in; commanding a higher price and getting it when the creator sold it) it would NOT EVER be offered by the creator with rights. PERIOD.

It is a well known FACT in our industry (internet marketing) that, one only offers the resell rights to their product once they have "milked" the value of the product for all that it's worth FIRST. (or it starts out worthless because; it doesn't work, doesn't solve a universal enough problem etc.)

Thus, if the rights are available, it's already WORTHLESS (without rights).

So... what's product creator to do?...

... simple...

DON'T SELL THE RIGHT TO SELL YOUR CREATION TO ANYONE ELSE.

This is not brain surgery.

It's also very profitable... even when talking about a product that sells for only $20

I created such a product about 2 years ago and, I know that if I offered resell rights, it would have been rendered WORTHLESS within just DAYS of release.

However, I originally released it 2 years ago at $9.97 and have INCREASED it to $19.97 over that two years and, it sells
EVERYDAY for $19.97.

... How can that be?...

1. I offer generous commissions to partners and affiliates who promote it.

2. It has an extensive back-end that generates revenue.

3. It has ACTUAL value in itself, from a user's perspective.

4. I have NEVER sold the right to resell it to ANYONE.

The moral of the story is:;

Don't offer the resell rights to a product that you wouldn't want to see "on sale" at WalMart.

Cheers,

Mark Sandquist