Viewing Your Resale Rights As An Investment

When people think of investments, they usually think of taking a certain amount of money and putting it into something like stocks or bonds, with the hopes that in a few years they will see a significant return on their investment. In the case of stocks, the potential for a big return is quite large, but also risky as stocks can fall through the floor quite easily. Bonds are more safe, but the return on most bonds is very small. Unless you invest in a great number of these bonds there isn't much chance of coming away with a large profit, not to mention that the wait time on bonds can be measure better in dog years than in people years.

But what about resale rights? Can you look at these as an investment? Will they give you a large return later for a small investment now? While nothing in life is certain, the answer is yes, Resale rights can be an investment that might very well grow geometrically over time. But how?

The how is actually very simple. The kind of resale rights package you provide to your customers really doesn't matter as long as there is a built in income source in the package itself. Even if you earned only $1 from each sale, watch and see how that $1 investment, if that's all you paid, can add up over time.

To understand how this works, one need only give the example of taking a penny and doubling it each day for a month. After 5 days you have gone from 1 to 2 to 4 to 8 to 16 cents earned. As you keep doubling that penny grows to an incredible figure. You can do the rest of the math on your own. The same is true with a resale rights package that you sell to people. If these people can in turn sell this package and you get no more than a dollar for each of their sales, or even 50 cents, in time this will add up. Here's how.

Let's say on day 1 you sell just one of these packages to one person. Let's for argument sake say that you never sell another one on your own. This person then sells one on his own. Now there are 2 packages out there. Let's say that each of these people does just one better than you and sells one additional package. So the first person you sold sells two and then his two people sell two. Now you have 7 of these packages floating around the Internet.

Do you see where this is going? Eventually, if everyone just sells two of these packages and you get only 50 cents for each sale, before you know it you have enough money to retire for the rest of your life, and quite quickly too.

In real life, it's not this easy. Most people don't know how to sell and don't duplicate your efforts. So you have to keep on selling these on your own. But eventually, you will find enough people who know how to sell on the Internet and what will happen is after gaining enough momentum, the product will be able to sustain itself without you doing a thing. One such program, who's name will be left out of this, was started 5 years ago with the same concept. Today, the owner makes 1200 sales a month. He personally makes only 15 himself. The work he did 5 years ago is paying him month after month 5 years later without him having to do a thing.

The point is this. Don't think of selling resale rights as the small profit you can make today. Think of it as the big windfall you'll see years down the road.

Ken Mathie - EzineArticles Expert Author

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