In the last blog post, I explained what Private Label Rights is in a nutshell. The practice of private labeling have been around since the start of the Industrial Age although the PLR concept is relatively new to Internet Marketing just some few years ago.
And even though private labeled products are often perceived to be inferior in offline businesses, some smart companies and retailers have successfully used Private Label Rights to skyrocket their annual sales and profits – up to as phenomenal as 300%!
In fact, a book entitled “The Private Label Strategy” have documented a detailed account on how retailers like Wal-Mart and TESCO do it with private label marketing.
(I’ve also discussed more about it in detail in my PLR Xtreme newsletter which you can subscribe to at http://plrxtreme.com/).
Did you know? Product brands are now competing for shelf spaces even with their own retailers! When you walk into chain retailers like TESCO and Giant, did you notice there are products with these brands on? You see, they have purchased the Private Label Rights to raw materials and ready-made goods to rebrand and sell as their own product.
So think about it:
(a) If the consumer buys a bottle of mineral water from another brand, the chain retailer earns a cut from it.
(b) But if the consumer buys the chain retailer’s brand, it keeps the entire sale!
This may not seem significant but when you factor in volume, it can become quite staggering. These big industry players have reported to bring in three times the annual sales and thus increase their profit margins too!
And how can you do the same for your Internet Business? If you are currently affiliating for other merchants and you have identified which products sell better, you can buy the Private Label Rights and create another “competitor product” to offer to your target buyers.
Again:
(a) If the buyer buys another merchant’s product through your affiliate link, you earn a commission.
(b) And if the buyer buys YOUR product which you have private labeled, you earn ALL of the sale!
Product creation doesn’t have to necessarily tough anymore, since you can just invest in private labeling your own digital products to sell. And giving your customers more choices means potentially more money you can make!
