Is Master Resell Rights A Scam?

Online scams are a dime a dozen, and they come in varying flavours; if you think you're too smart to be scammed or you've never been scammed, so it will continue into the future, then you're playing a dangerous game.

Don't underestimate the ability of others who have too much time on their hands and malicious intent; there is no shortage of people willing to do anything for a quick buck and find a way to justify it.

In recent years, we've seen MLMs come and go, nonsense course sellers and online gurus sell you dreams of "passive income", which does not exist, by the way; please just get that idea out of your head now; there is no such thing as passive income.

There is no such thing as wealth without work or wealth without deploying capital and taking risks.

Despite that fact, there will always be someone looking for the easy way out of the get-rich-quick scheme, and for that cohort, there's now the scheme that is Master Resale Rights (MRR), often touted as a lucrative opportunity for aspiring entrepreneurs.

These rights typically allow individuals to purchase a product and then resell it, often with the added benefit of keeping 100% of the profits. While the concept may sound enticing, many experts and industry insiders argue that Master Resale Rights can be problematic and potentially misleading.

The MRR Pitch

While MRR is not a pyramid scheme by the technical definition, don't get tripped up by the wording; it's crafted purposefully to avoid the association.

MRR borrows or draws inspiration from the classic Ponzi, but unlike a pyramid scheme or MLM, it doesn’t rely on directly recruiting others and then earning a profit every time it recruits and sells.

You make a profit just when you sell it to others directly. When they sell it, they keep 100% of the profit.

You're basically playing hot potato with the MRR in question; the product itself is irrelevant, the quality is questionable, and it's normally a course on how to sell a course or participate in MRR. Sometimes, they'll change it up and niche down into something like an MRR course on real estate or running a marketing agency using generic information you can find online or source from your preferred LLM chatbot.

This is just the practice of putting lipstick on a pig.

The end result is always that you grow the pie of sellers and exhaust the number of buyers, and when that time comes, the majority are left with no new suckers to pass on the MRR ponzi opportunity to, while those who sold first walk away with the initial profit.

Why is an MRR a Scam?

Sadly, most people don't realise what they're getting into; they're sold a narrative and every day, someone signs up to this funnel to become the next boss babe, work from home, mompreneur or hustle, bro.

At nichemarket, literally, every day, we have to reject listings from people who want to promote their MRR or Ponzi-like system, and it's a daily reminder of how prevalent this scam is, not only in my native South Africa but globally.

Honestly, it drives me a little batty.

Like, go about your day, promote your ponzi, but don't bother legitimate businesses with your nonsense.

1. Lack of Unique Value

One of the primary criticisms of Master Resale Rights is that they often involve products with little to no unique value. Many MRR products are simply repurposed or rebranded versions of low-quality digital goods that have been sold repeatedly.

This can lead to a glut of similar products flooding the market, diminishing their perceived value and making it difficult for resellers to stand out or offer anything of real substance.

The product doesn't need to be good, or cater to any need.

The fact is the course is irrelevant; the course isn't the product; the product is you, the sucker willing to take on the expense, hoping you can pass the expense on to someone else.

The product is just there as misdirection to make you feel like you got something for entering the scam, the same way crypto scams give you tokens. Yes, the tokens are in your wallet, but they mean literally nothing to the market.

The goal is to find a greater fool to pass on the dud.

2. High Competition and Saturation

The resale market for digital products with Master Resale Rights can quickly become saturated. Since anyone can purchase MRR and resell the same product, this creates intense competition.

The oversupply of identical or very similar products can drive prices down and make it challenging for resellers to generate meaningful profits. This saturation not only affects the potential income but also reflects poorly on the product’s perceived value.

Think about it, if your goal is to create competition for your business, how long can your business last? Seriously, make it make sense!

3. Questionable Quality and Support

Products sold under Master Resale Rights often suffer from quality issues. Since the primary focus is on reselling rather than creating a high-quality product, the original content may be poorly researched, outdated, or simply not useful.

Moreover, MRR products frequently come with minimal customer support, leaving resellers to handle any issues that arise without adequate help. This can lead to customer dissatisfaction and ultimately harm the reseller's reputation.

4. Misleading Marketing

The marketing for Master Resale Rights products often promises easy profits with minimal effort, which can be misleading. Advertisements might exaggerate the potential earnings and downplay the challenges involved.

This can lure individuals into buying into MRR schemes with unrealistic expectations, only to find themselves struggling to make a return on their investment.

5. Lack of Long-Term Viability

Master Resale Rights are typically not a sustainable business model for long-term success. As mentioned earlier, the market becomes saturated, and competition increases, which can erode profit margins.

Additionally, the novelty of MRR products wears off quickly, and consumers may become wary of purchasing products that seem to be continuously recycled or repackaged.

6. Potential for Fraudulent Practices

Now, MRR promoters will try to obfuscate the obvious by pointing to a minority; while the vast majority are outright scams, they'll hold up one course that has generated revenue and a few success stories and allude to this being the norm.

It's not!

There have been case after case cases where MRR schemes have turned out to be outright fraudulent. Some sellers of MRR packages may employ deceptive practices, such as making false claims about the earnings potential or the quality of the products.

Others might provide incomplete or outdated information, leaving buyers with little recourse if the product fails to meet expectations.

I'm not going to sit here and waste my time listing every MRR scam; they rebrand this hot garbage every few weeks, in any case, with the resellers switching accounts and courses regularly. To give you some examples, check out this video.

7. Hidden Costs and Upsells

Many MRR offers come with hidden costs or upsells that are not immediately apparent. For instance, while the initial purchase might seem affordable, resellers might be pressured to buy additional tools, training, or promotional materials at extra costs.

These upsells can quickly add up and erode the profitability of the MRR venture.

MRR is Sold on Social Proof Alone

Those who sell MMR will take to social media to make bold income claims; they know this will grab your attention. It will either be some flex culture lifestyle content, shopping sprees, travel or other luxury items trying to rope you in, or they'll push some rags to riches sob story to get you to engage with them on an emotional level.

Once you've been suckered into the funnel, you will often notice the comments are flooded by those who also sell MMR. Similar to an MLM, they all comment dogpiling and gaslighting each other’s posts to try and gain social proof and get engagement. 

This encourages people to ask more about it, and then they can send you a sales pitch. 

Major red flag!

Also, how is this passive if you're sitting there wasting time in an engagement pod chatgroup having to comment on everyone's posts and liking it to game the algorithm?

It's so sad and pathetic.

When you venture down the funnel, trying to figure out how they made their money, you'll likely get pushed to some sort of click funnels conversion page with content that is quite vague, with the main point signing up, and you can also make oodles of money.

Master An Actual Craft Instead

While Master Resale Rights might seem like an attractive way to enter the world of digital sales, they are fraught with potential pitfalls. From quality issues and market saturation to misleading marketing and hidden costs, MRR schemes often fall short of their promises.

As with any investment, it is crucial to conduct thorough research and critically evaluate the potential risks and rewards before committing, but for most people who can't reason from first principles, I encourage you to ignore my warnings, go in full steam ahead and knock your head.

Sometimes, learning the hard way is the best method of searing the lesson into your brain.

Now, there is nothing wrong with starting a small business, but starting a business shouldn't be about what is the easiest way to make money but rather how I can apply my skills, time and resources to provide value that people would be willing to pay a premium to access.

While the survivorship biases promoted by the top MRR salespersons might strong-arm you into thinking it is real, the reality is for the majority of MRR resellers, you're going to end up wasting your time. You're better off exploring other business models or investing in creating unique, high-quality products that might be a more viable and sustainable path to success.

Are you looking to promote your business?

Business owners can create their free business listing on nichemarket. The more information you provide about your business, the easier it will be for your customers to find you online. Registering with nichemarket is easy; all you will need to do is head over to our sign-up form and follow the instructions.

If you require a more detailed guide on how to create your profile or your listing, then we highly recommend you check out the following articles. 

• How to create a nichemarketer profile 
• How to create a nichemarket business listing 

Recommended reading

If you enjoyed this post and have a little extra time to dive deeper down the rabbit hole, why not check out the following posts on web security?

• Will Hetzner's Security Breach cost them the SA Business Awards?
• How Does Site Maintenance Improve Website Health?
• WordPress Blogs Defaced By Hackers
• Why You Should Upgrade Your Site To TLS 1.3
• How To Protect Yourself When Using Public WiFi
• 9 Simple WordPress Security Tricks to Keep Your Website Safe

Tags: Scam