What is MRR and is it Worthwhile?

Master Resell Rights (MRR) is a licensing agreement that allows individuals to resell a product and also pass on the resell rights to their customers. This concept primarily applies to digital products such as eBooks, software, templates, and courses. Understanding MRR involves grasping its potential benefits and drawbacks, especially when considering it as a side hustle or as the foundation of your solopreneur business.

Benefits of MRR 

Low Initial Investment: One of the most appealing aspects of MRR is its low barrier to entry. Acquiring MRR products often requires a one-time purchase or a small fee, providing immediate access to digital goods that can be resold multiple times.

Passive Income Potential: MRR products can generate passive income since they can be sold repeatedly without additional effort beyond initial marketing and setup. This scalability makes it attractive for individuals looking to earn money without continuous active involvement.

Flexibility and Convenience: As a side hustle, MRR offers flexibility in terms of working hours and location. It can be managed alongside a full-time job or other commitments, as selling digital products typically involves minimal physical logistics or customer interaction.

Learning Opportunity: Engaging in MRR can also serve as a learning experience in online marketing, sales strategies, and customer acquisition. These skills are transferable and valuable in various aspects of entrepreneurship and digital marketing.

Drawbacks of MRR as a Side Hustle

High Competition: Due to the accessibility of MRR products, competition among resellers can be intense. It can be challenging to differentiate oneself and stand out in a crowded marketplace, affecting sales and profitability.

Quality Control Issues: Since MRR products are often created by third parties, quality control can be an issue. Some products may be outdated, poorly designed, or lack relevance to current market trends, which can lead to customer dissatisfaction and refunds.

Legal and Copyright Concerns: Reselling MRR products requires careful attention to licensing terms and copyright laws. Violating these terms can result in legal consequences, including fines or restrictions on selling rights, particularly if resale rights are not clearly defined or documented.

Limited Long-term Growth Potential: While MRR can provide passive income, its growth potential may be limited compared to other entrepreneurial pursuits. Scaling often depends on continuously finding new products or niches rather than building a sustainable brand or business model.

My conclusion: MRR is the new MLM

Some people may disagree with my conclusion, and I would love to hear from you (kindly and graciously) if you do. But overall, after stumbling into some MRR “traps”, I was reminded of ten years ago when I was caught up in DoTerra, Beachbody, and Norwex (all of which I enjoy, as products!)

For both of these marketing methods, there may be some income made from actually selling the product itself, but at the end of the day the real money is made from getting OTHER people to invest in being able to sell the products. So while you may see me selling products that I purchased the rights to, you will not see me trying to convince you to buy the same package.

Be wary out there – there are way too many people/companies that just want to make some money off of you so that they can post about how they made $10,000 in their first week!!! If you want to build a real, solid business, I hope you will take a look at some of the MANY other solopreneur business options.