You’d be forgiven for thinking that Private Label Rights (PLR) is a uniquely eccentric quirk of the Internet Marketing industry. The truth is that some of the biggest retailers in the world are using PLR, including Wal-Mart, TESCO and Giant. The fact that even the medium and smaller store franchises are following suit gives us a pretty big hint that this is a profitable way to go. Incredibly, this strategy is said to have increased profits for the big franchises by as much as 300 percent!
Obviously I’m not suggesting that the big stores are stocking PLR versions of Internet Marketing eBooks and videos. I’m referring to the well-established trend of selling grocery products labeled with the store’s own brand. This is a different form of PLR but the principle is exactly the same. A supplier creates the products and the store pays to have their name and brand printed on the outside.
Think I’m stretching the definition of PLR a bit? Go and have a look at www.privatelabelfoods.com and see for yourself.
This practice has become so prevalent that in some cases product brands are complaining about having to fight for shelf space. No longer are they just competing with one another, they now also have the might of the huge retail chains to contend with. And don’t think this is a practice unique to the western world; Giant is a huge chain of retail stores in Malaysia, Singapore, Brunei, Indonesia and UAE, that also sells a wide range of their own brand products.
So how can you imitate this success by using PLR in your Internet business? Well if your current income stream is mainly from Affiliate Marketing, why not also offer private label products under your own name and brand. The more choices you give your prospects, the more money you can potentially make.
Think of it like this. If a consumer buys a regular branded product, the store profits from their mark-up – a little bit like when you earn a commission for selling someone else’s eBook or software as an affiliate. If the consumer buys a private labeled store-branded product, the store keeps the entire sale, minus their private labeling costs – exactly as you would if you sold an eBook or software under your own name.
I’m not suggesting for a minute that you should give up on Affiliate Marketing but if you offer one or more alternatives in the form of your own privately labeled products, you stand to increase your profits significantly. In practice, you can do this by putting your product’s advertisement next to the one you are promoting for as an affiliate, whether it’s on a blog post, a sponsored ad, in a member’s area, on a thank you page and so on.
This is so easy to do. These smart retailers don’t go to the trouble of creating their own brand products from scratch, they simply purchase Private Label Rights to existing materials and ingredients, add their own twist, and paste their brand onto the packaging. Voila… they’re ready to go. Likewise, you don’t have to create your own digital products from scratch. You can do exactly the same with Private Label Rights to digital products, whether it be eBooks, reports, audio, video, graphic files, software, scripts… you name it!
Don’t turn your nose up at PLR or dismiss it as an Internet Marketing fad or gimmick. The big store franchises have been using PLR for years and their range is still growing. If it’s good enough for international, multi-billion dollar businesses, isn’t it worth applying it to your business as well?
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By Edmund Loh
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This article first appeared in the September 2009 issue of the MarketingDotCom newsletter. You can get a free copy of the latest issue for the price of shipping at http://the7figuresecrets.com