Master Resell Rights vs Affiliate Marketing. Which is Best?

Last Updated on September 9, 2024 by Jan Barley

Master resell rights vs affiliate marketing offer unique opportunities for entrepreneurs. But which one is right for you?

I have tried both and have a preference.

Still, this article aims to assess these popular online income-generating methods independently.

81% of business brands rely on affiliate marketing to generate additional business, and experts suggest the digital product market will reach $331 billion by 2030?

It’s a booming industry.

Master resell rights and affiliate marketing can potentially transform your online business – but understanding their differences is crucial for success.

What Are Master Resell Rights?

Definition And Explanation Of Master Resell Rights

Master Resell Rights (MRR) is a licensing agreement granting you permission to resell an MRR product. Your customer then has the same resell rights, and so do their customers.

That means you can sell the product as your own and allow your buyers to do the same.

With most MRR, you cannot alter the content significantly, but you can sell a ready-made product with minimal work involved.

Types Of Products Typically Offered With MRR

Most Master Resell Rights are digital products such as courses, e-books, software applications, audio programs, graphics packages, and website templates (such as Canva).

Some popular niches for MRR products include social media marketing, personal development, health and wellness, and business strategies.

The advantage is these products are often professionally created and ready for immediate distribution, saving you time and resources in digital product development.

Benefits Of Using Master Resell Rights Products

MRR products often come with pre-made sales materials such as landing pages, email swipes, and graphics, which can significantly reduce your marketing workload.

Another benefit is the potential for higher profit margins from digital product reselling than affiliate marketing, as you keep 100% of the sale price rather than just a commission.

Potential Drawbacks And Challenges

One of the most significant drawbacks I found discouraging was that we get paid directly for the more expensive MRR products, such as courses.

Although that sounds fantastic, it means connecting with a payment processor, and herein is my issue.

Payment processing for digital sales can be tricky, especially if the product is high ticket and you have a lot of high value sales.

Some payment processors dislike the MRR business model and class it as “predatory”.

During 2024, I observed many people losing their payment processor accounts, and, for me, that was simply too stressful. It was the prime reason I turned to affiliate marketing.

4 disadvantages of master resell rights products

1. Market Saturation – As more people promote the same products, it can lead to price wars and reduced profitability.
2. Product Quality & Relevance – Unless the creator updates content, it can go out of date, and you have no control over product quality.
3. Low-Quality MRR Products – Poor quality products can potentially damage your reputation.
4. Customer Support – You may have to deal with customer support customer support for digital products, such as refunds.

Understanding Affiliate Products

How Affiliate Marketing Works

Affiliate marketing is a performance-based marketing model.

Businesses pay affiliates an agreed commission for each sale or lead they bring to the company via a unique affiliate link and managed with affiliate tracking software.

Types Of Affiliate Products And Programs Available

There are affiliate products and programs for every imaginable niche, for physical and digital products. For example, Amazon offers an affiliate program for their products.

Affiliate programs exist for travel booking, web hosting, financial services, and more. Programs have different commission structures, such as the following:

• Pay-per-sale (most common)
• Pay-per-lead
• Pay-per-click.

Some programs offer recurring commissions for subscription-based products, while others provide tiered commissions or bonuses for high-performing affiliates.

Advantages Of Promoting Affiliate Products

Affiliate marketing is a low-risk, flexible business model requiring little to no upfront investment.

Many affiliate programs provide marketing materials and support, making it easier to promote their products effectively.

Suppose you promote affiliate offers with recurring commissions. In that case, the potential for passive income is a significant advantage, as you continue earning commissions from your content or marketing efforts long after publication.

Common Hurdles In Affiliate Marketing

While affiliate marketing can be profitable, it comes with challenges. One of the primary hurdles is standing out in a crowded marketplace, as many affiliates may promote the same products.

Affiliate marketing success requires creativity and a unique marketing approach to building trust with an audience, as overly sales-focused content can turn off potential customers.

Beginners often fail to be compliant because they don’t realise the legal requirement to disclose affiliate relationships.

Comparing Revenue Potential

Profit Margins For Master Resell Rights Products

Master resell rights (MRR) products typically offer higher profit margins as you keep 100% of the sale price.

If you promote organically on social media or your blog, it’s a cost-effective business model. Still, remember you will pay transaction fees to the payment processor.

Commission Structures In Affiliate Marketing

Affiliate commissions vary from 5% to 50% of the sale price. Digital products often offer higher rates (30-50%) than physical goods (5-15%).

Some programs provide recurring commissions for subscription-based products or tiered structures rewarding higher sales volumes. For instance, Systeme pays 60% recurring lifetime commissions.

To build passive income, target affiliate programs with recurring commissions.

Factors Affecting Earnings In Both Models

Before choosing between master resell rights products or affiliate marketing, consider the following factors.

• Pricing strategy (for MRR)
• Your marketing skills and reach
• Market demand and competition
• Seasonality and industry trends
• Quality and relevance of products
• Your time and resource investment
• Traffic sources and audience engagement
• Commission rates and conversion rates (for affiliates)

Time and Effort Investment

Whether you choose MRR or affiliate marketing, there are a few considerations for time and effort.

Setting Up A Master Resell Rights Business

Setting up an MRR business involves sourcing quality products, creating a distribution system, and developing a marketing strategy.

Initial time investment is moderate to high, including product evaluation, website setup, and sales funnel creation.

Suppose there are any technical aspects to set up like sales funnel creation, that’s where most beginners struggle to get going.

Getting Started With Affiliate Marketing

Starting affiliate marketing requires less initial setup than MRR.

My advice is the following:

1. Choose a niche – ideally, something you are interested in
2. Build a blog generating a minimum 10k monthly impressions (merchants reject your application if you have no website, traffic or social media presence)
3. Select affiliate programs you use, respect, or have an excellent reputation
4. Choose programs with minimum affiliate commission rates of 20% and ideally lifetime recurring commission (these factors mean your efforts compound over time for passive income streams)
5. Read the affiliate program’s terms and conditions
6. Write product reviews and comparisons on your blog
7. Select social media platforms to promote (Pinterest is great for driving traffic to your blog posts)
8. Monitor results & adapt over time

Ongoing Work Required For Each Model

MRR: Regular tasks include customer support, product updates (if allowed), and continuous content creation and marketing. Time commitment varies, but expect at least 10-20 hours weekly.

Affiliate Marketing: Ongoing efforts focus on content creation, SEO, and audience relationship-building. Time investment ranges from 5-15 hours weekly, depending on the scale of operations.

With both business models, the goal is to master traffic generation techniques to drive potential buyers to your offers.

Scalability And Automation Potential

MRR: Scalability involves expanding product lines and automating delivery systems. Challenges include managing increased customer support and maintaining product relevance.

The downside of taking on more MRR products is giving potential customers too much choice. That can cause confusion and limit sales.

Affiliate Marketing: Highly scalable through content marketing and SEO. Automation possibilities include email marketing sequences and social media scheduling.

When you have learned how to generate quality traffic, you can start promoting high-ticket affiliate offers,

Legal and Ethical Considerations

Understanding MRR Licenses And Terms

Review MRR license agreements carefully. Key points are resale rights, modification limitations, and distribution restrictions.

It’s concerning how many people break the rules and guidelines and lose access to the MRR product.

Ensure compliance with terms to avoid legal issues. Keep records of purchased licenses. Understand the difference between MRR, PLR, and other license types.

Compliance With FTC Guidelines For Affiliates

Affiliate disclosure requirements are mandatory.

Disclose affiliate relationships clearly and conspicuously. Use precise language and place disclosures near affiliate links or at the beginning of content.

Avoid deceptive claims about products or earnings potential and stay updated on FTC regulations.

Protecting Your Business And Customers

Implement secure payment processing. Use SSL certificates for websites. Create transparent privacy policies and terms of service.

Protect customer data in compliance with regulations (e.g., GDPR). Consider business insurance. For MRR, ensure product quality to minimise liability. For affiliates, vet products before promoting.

Choosing the Right Path for Your Business

Assessing Your Skills, Resources, And Goals

1. Evaluate your strengths: writing, technical skills, marketing experience.
2. Consider available time and capital.
3. Determine short and long-term business goals.
4. Assess your motivation levels. How will you cope if you don’t get a sale for months? 90% of people quit for this reason.

I think we each have a personality suited to MRR or affiliate marketing. You may not know your preference until you get started.

Combining MRR And Affiliate Marketing Strategies

Blend your approach for diversified income. Use affiliate products to complement your MRR offerings. Leverage MRR products to build an email list for affiliate promotions.

Create content around your MRR products and include relevant affiliate links.

Tools And Platforms To Support Your Chosen Model

Most MRR creators supply tools like sales funnels and email campaigns, but some don’t.

I use Systeme to set up sales funnels and capture pages. Aim to build your email list to share valuable content and promote offers.

You can create email challenges, set up evergreen webinar content, host courses, and create a community on Systeme.

Expert Tips For Maximising Success In Either Approach

1. Diversify traffic sources to reduce risk.
2. Prioritise building an engaged audience.
3. Focus on niche markets for less competition.
4. Continuously test and optimise your strategies.
5. Invest in ongoing learning to stay current with trends.
6. Provide exceptional value to stand out from competitors.
7. Ideally, choose programs with analytics and performance tracking, so you can monitor results from your efforts.

Conclusion

Content marketing for affiliates and master resell rights products offer exciting opportunities for online entrepreneurs. Your choice depends on your unique skills, resources, and business objectives.

Your results will improve if you learn SEO for digital product sales and marketing. Whatever you plan to do to make money, focus on creating long-term income diversification strategies.

What I like about affiliate marketing is that I am not responsible for payment processing, product creation, customer service or refunds.

I also love recurring affiliate programs commissions.

Whichever path you choose, remember that success comes from effective online marketing strategies.

In addition, it requires determination, adapting your skills and learning on the go. If something isn’t working, evaluate your process and make changes.

It can take months to get your first MRR or affiliate product sales. If you keep going, build content and stick with it, the results will come. After that, scaling an online business becomes easier.