When it comes to building a business online, two popular models often come up: Master Resell Rights (MRR) and Affiliate Marketing. Both offer unique ways to generate income, but they differ in terms of their approach, structure, and responsibilities. In this post, we’ll break down both models across various key aspects to help you understand which might be a better fit for your business goals.

1. Definition

Master Resell Rights (MRR)

Master Resell Rights (MRR) is a licensing model that allows you to sell a product, but with the added benefit of granting resell rights to others. This means that not only can you sell the product yourself, but you can also allow others to resell it and earn a commission or profit.

Affiliate Marketing

Affiliate marketing is a performance-based marketing model where you promote products created by others and earn commissions for the sales or leads you generate. You don’t own the product or have any control over it; your role is simply to drive traffic and encourage people to purchase using your affiliate link.

2. Primary Function

MRR

The primary function of MRR is to sell a product and enable others to resell it. When you purchase a product with MRR, you not only make money from selling it yourself but also empower others to sell it for you, allowing you to earn a percentage of the profits from their sales.

Affiliate Marketing

Affiliate marketing, on the other hand, is all about promotion. As an affiliate marketer, you don’t have ownership over the product but instead focus on promoting someone else’s product and earning a commission whenever a sale or lead is made through your unique referral link.

3. Income Structure

MRR

In an MRR model, your income comes from two sources: direct sales and the commissions earned from resell rights. By selling a product, you can make a profit from each individual sale. Additionally, when you allow others to resell the product, you earn a commission or a cut of the profit from their sales.

Affiliate Marketing

Affiliate marketers earn a percentage of each sale made through their affiliate link. This percentage can vary, depending on the company and the product being promoted. Some affiliate programs offer a fixed commission, while others provide a percentage of the sale price, which can range from a few percent to as much as 50% or more.

4. Product Control

MRR

While you can resell the product with MRR, you have limited control over the product itself. The product is usually sold as-is, and the primary responsibility lies in marketing and building a reseller network. You cannot modify the product; your job is to sell it and offer resell rights to others.

Affiliate Marketing

In affiliate marketing, you have no control over the product. You are simply a marketer who promotes existing products. The creation, updates, and pricing of the product are all managed by the product creator or company. Your focus is on promoting it effectively and driving traffic to increase sales.

5. Upfront Costs

MRR

MRR typically involves a one-time fee to acquire the product and the rights to resell it. This upfront cost can vary depending on the product and the MRR license itself. Once you purchase the product, you can start reselling it and grant others the right to do the same.

Affiliate Marketing

Affiliate marketing usually requires low to no upfront costs. You don’t need to buy any products since you are promoting someone else’s. However, you may need to invest in marketing tools, such as a website, paid ads, email marketing platforms, or content creation tools to effectively drive traffic to your affiliate links.

6. Marketing Responsibility

MRR

As an MRR seller, you are responsible for managing your own marketing efforts. This includes advertising the product, creating sales funnels, and building a network of resellers. Additionally, you might need to provide training or resources to help your resellers succeed.

Affiliate Marketing

Affiliate marketers focus solely on driving traffic and sales through their affiliate links. Your marketing efforts may include social media promotions, paid advertisements, blogging, or email campaigns. All customer support and product-related inquiries are handled by the product creator.

7. Product Creation

MRR

No product creation is required in the MRR model. You sell existing products, usually in digital formats like e-books, courses, or software, and offer others the opportunity to resell them. This makes it an ideal option for individuals who want to build a business quickly without creating their own products.

Affiliate Marketing

Similarly, affiliate marketers don’t need to create products either. The entire focus is on promoting products created by others, often in specific niches. You just need to focus on marketing and driving sales.

8. Support Responsibilities

MRR

In the MRR model, you may have to provide customer support to those who buy the product from you. Additionally, if you allow others to resell the product, you might also be responsible for offering support to your resellers, helping them succeed in their sales efforts.

Affiliate Marketing

In affiliate marketing, the responsibility for customer support lies with the product creator. You have no obligation to answer questions about the product or handle any customer service issues. Your focus remains on promoting the product and earning commissions.

9. Scalability

MRR

The scalability of MRR is quite high. You can scale your business by increasing the number of products you sell and by building a network of resellers. As your reseller network grows, so does your potential income.

Affiliate Marketing

Affiliate marketing is also scalable. The more traffic you can drive to your affiliate links, the more potential there is for higher commissions. Scaling involves increasing your promotional efforts and expanding your reach through various marketing channels.

10. Profit Potential

MRR

MRR offers a high-profit potential, especially if you sell both the product and the resell rights. The ability to earn from both direct sales and resellers creates multiple income streams, making this model more profitable in the long term.

Affiliate Marketing

Affiliate marketing’s profit potential is variable. The amount you earn depends on the products you promote, the commission rates, and how much traffic you generate. While it can be lucrative, it may take time to see significant returns, especially if you’re just starting out.

11. Business Model

MRR

In the MRR model, you act as both a seller and a resell rights provider. Your business revolves around selling products, offering resell rights to others, and managing a network of resellers who also sell the product.

Affiliate Marketing

Affiliate marketers act as promoters, focusing on marketing products created by others. Your primary job is to drive traffic to the product through affiliate links and earn commissions based on sales or leads.

12. Examples

MRR

An example of an MRR product could be selling an e-book on a specific topic and offering resell rights to others. This means not only do you make money from selling the book, but others who buy the resell rights can sell the book and make money as well.

Affiliate Marketing

An example of affiliate marketing could be promoting an online course. As an affiliate, you would earn a commission for every sale made through your referral link.

Conclusion

Both Master Resell Rights (MRR) and Affiliate Marketing offer unique business opportunities with their own advantages and challenges. MRR allows you to sell products while building a network of resellers, making it a great option if you want to increase income streams and have more control over the products you sell. On the other hand, affiliate marketing is an excellent choice for those who want to promote products with minimal upfront costs and responsibility, focusing solely on marketing and earning commissions.

Choosing between MRR and affiliate marketing ultimately depends on your business goals, available resources, and how much effort you're willing to put into building a network or marketing products. Both models have the potential to generate substantial income, so carefully consider your options and choose the one that aligns best with your vision.