Reseller Rights Membership Sites: Smell a Scam

photo credit: Orin Optiglot

As part of running this blog, I test out a lot of products and services so I can recommend or warn you away from them. I also sign up for a lot of “free” products, mailing lists, etc. to keep on top of what is being offered. I’m often entertained – and irritated – by the severe level of scam that some of these offers scream. Before you read this, keep in mind that there are definitely resell rights membership sites that are excellent and will help you create income streams. That being said, here’s one of my favorite scam-ish offers from the last week.

The Scam

I recently received a free offer to be a beta tester for a new reseller rights membership site. Apparently for your one-time $97 payment you get a free automated website worth $2000. Basically it’s a pre-populated website filled with reseller rights products. I can’t vouch for the quality of the products, but my guess is they are similar to what you’d get for free in a giveaway. Some of these products are great, but this site screams scam for a few reasons.

First of all, the “free for $97″ issue. In the FAQ, it is explained that the $97 pays for your domain and hosting. What?! A domain can be purchased for less than $10 and hosting for a small reseller product site shouldn’t be more than $5 – $10 a month. Yes, that might be a bit more than $97, but with this set-up you essentially own nothing. You aren’t building a business and your website isn’t even really yours.

According to the squeeze page, this system will soon cost $687. As a “beta tester” you will have the “privelege” to earn 50% commissions on this outrageous figure. Privelege? I honestly couldn’t sleep at night if I sold this “product” to someone for nearly $700.

What you are basically getting with this product – and the many others like it – is a website preprogrammed with various reseller products, ad programs and other monetization methods built in. In other words, a big hot mess of “BUY ME!” from which visitors will quickly run away. You will not – as the site promises – make a six figure income by simply passively setting up a site like this.

Also, the “automated” aspect costs another $14.95 a month. This is recommended because it keeps your website updated with new, “hot” products. Otherwise you will have to manually update your site with the products. If you want to automate your site you’ll need to pay a $27.97 activation fee and then the monthly fee. Don’t forget, you’ve already paid $97 for your “free” site.

The Real Deal

You can absolutely make money with reseller rights products. The best idea is to subscribe to a quality RR product site and learn a solid system. You can find these by researching various options. Most of these sites will give you a free lower-level membership so you can see what the site has to offer. If you like it, then you can upgrade to a higher level with more and better products. If a site wants a bunch of money up front before you even get to check it out, take a pass. There are many membership sites out there that appear to be free (like the one discussed above) but immediately start stacking on fees and extra costs.

To get started with resell rights products, my highest recommendation goes to Edmund Loh’s Resell Rights Mastery. By using the link you will get a free lifetime membership to the Gold membership level. There are three upgrade options, all worth it, but not necessarily critical to your success. If you are new to resell rights product sales, go through the information available to Gold members at Edmund’s Resell Rights Mastery. You will receive free templates, products with resell rights and a getting-started guide.

If you join Edmund Loh’s Resell Rights Mastery let me know what you think in the comments.