Every entrepreneur who is looking for the most efficient way to sell products over the internet should be very enthusiastic about drop shipping. It finally allows you to sell nearly anything you want, be it computer equipment, toasters, billiard tables, even planter pots, all without having any inventory. And do you know what zero inventory means? It means less risk! The only time you ever buy any products from the wholesaler is when you have already sold it to a customer! And the best thing is (or should I say, another best thing), the wholesaler packages it up and ships it out to the customer for you, and usually your business name is on the box! As far as the customer knows, you have a warehouse full of products.

When you sign up with a wholesaler, they will most likely ask you for your tax license number, or a faxed/emailed copy of it to prove you are a legitimate business. If they don’t ask you for this, they are either a very small wholesale company with a specific niche of products and just want to make the process easy for their clients, or they are not a real wholesaler at all.

If you ever come across a “wholesale” company that carries tons of items, ranging from Barbie’s to hair dryers, and they say that you don’t need to have a tax license to deal with them, then be very skeptical, because 99 to 1, they aren’t a wholesale company at all.

That sort of company will just take your order only to turn around and order it from the real wholesale company at a much lower cost than you paid for it (and they did have to get a tax license to do this). It doesn’t stop there either. Since you bought it at a higher price, you will need to pass this on to your customers by marking it up higher than you need to. And if you ever needed or wanted to, you would have less margin when lowering your prices to match or beat your competitors. And your competitors would probably have a tax license, so they would be dealing with legitimate wholesalers.

Seriously, be very careful about this, there are many wolves in sheep’s clothing out there. So skip the middleman, get your tax license, get legitimate and you will save yourself a lot of grief and money.

Once you make an account with a wholesaler, some will mail you a wholesale catalog and price list in the mail with a CD full of product images to use on your website. The smaller companies will just allow you to copy the pictures and descriptions off their website. With this product information, you can post the products to your online store and wait for orders. It’s as simple as that!

Then, when a customer places an order, you either call, email or fax your contact at the wholesaler and give them the customers name, address, and the items they want, including any other miscellaneous information the wholesaler may want. The wholesaler then charges you for the cost and shipping of the order at wholesale price, then packages it up and sends it off to the customer. All you have left to do is turn back around and charge the customers credit card for the items with your profit margin markup.

The reason this is growing in popularity amongst wholesalers is because they get to have many other companies market and sell their products, thus reaching more people and selling greater volumes. The wholesale company is still able to sell their products for the price they want, and you get to keep the profit margin as a reseller. It’s a win/win situation.

Drop shipping is enabling the average person to be able to run a successful, full service online retail store from the comfort of their home. Zero inventory, no shipping department, only buy when you have already sold — this is the perfect affiliate program.

Copyright © 2003 by Palyn Peterson
mailto:palyn@futureinternetmarketing.com

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PLR stands for Private Label Rights, and it means that once you bought a certain PLR product, you also bought additional rights, like the right to resell it (be it at a recommended price, or at your desired one), or the right to offer it for free to your readers, or the right to replace the author’s name with yours and sell it as if it was written by you directly.

What Products Can Be PLR Products?

PLR products can be e-books, reports, software, niche site headers, website templates… anything. Depending on their complexity, the price of Private Label Rights Products can be anywhere between $5 and $500, or $5000, or whatever price their author wants.

Just imagine: you are running a blog about gardening and your goal is to build a list of subscribers, so you can send them information and news from the gardening field (or to tell them about cool new gardening products which they would be able to buy via your affiliate link, granting you a small commission for your work). Now, you want to give an incentive for readers who take the time to join your mailing list: an e-book about growing cucumbers. Let’s suppose you know how to grow great cucumbers, but you don’t have the time to write this book, nor the skills to make it attractive. You’d have to pay a ghost writer to do it for you, and this may cost you some $400-$500. You pay the amount, you get the book, and you estimate that you’d need a certain amount of readers to buy the stuff you sell, in order to break even.

What if you could have the same e-book, as a PLR product, for only $27? It sounds better already, isn’t it?

What if, instead of giving the PLR book away for free, you decide to resell it at the $27 price? At the first buyer you get your investment back, and everything that follows is pure profit, money that enters your PayPal account immediately, without you having to wait until the end of the month or the end of the next month (as you do when you work with affiliate networks).

Where To Get PLR Products From?

• Option 1: Search the net for “my desired type of products” + PLR (or Private Label Rights, or reseller rights)
  Chances are that you’ll discover some good PLR products in that niche, and you’ll buy them one by one, at their given price. If I were you, I’d also search for “that PLR product” + coupon (or discount), to see if I can get it any cheaper.
• Option 2: Join a PLR membership site and get instant access to hundreds of PLR products which you can use as stated by the membership site owners. You remain a member only as long as you wish. Nobody asks you to commit for more than you’d want to. As log as you are a member, each month you’ll have new PLR products added for you to download and use. When you decide that you no longer need the membership, you just cancel it, and you preserve the private label rights for all products you’ve downloaded during your membership period. So, you can stay as a member for 3-4 months, download everything, then use it as you need, whenever you need.

It’s obvious that if you are into several niches, option 2 is the way to go, as it is much more cost effective than option 1. Besides, PLR membership sites have a good habit to offer their members products for personal use, which could help them a lot in their work (like video recording and publishing software, keyword research software, or other internet marketing tools).

How To Find Good PLR Membership Sites?

I’m using PLR products since a couple of years ago and I’m making good money with them. Some of these products are private label rights articles I downloaded in bulk from PLR sites I’m a member of. When I need fresh content for my niche sites, I simply browse my articles collection, choose the ones on the topic I need and rewrite them. PLR give you the right to change the articles in any way you wish and publish them under your name.

Over the next few weeks, I’m going to review several PLR membership sites, so you can make an informed choice, in case you decide to try this method to make money online.

Stay tuned, I’m preparing a surprise for you, which will hopefully fill your pockets without emptying them first.

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