Starting an online business for extra cash or to grow into a full-time income is easier than ever thanks to digital products. The two most popular options today include selling MRR products and affiliate marketing. You may be wondering what the differences are. I’m going to break down MRR vs affiliate marketing below.
Hey there! My name is Eartha and I’ve been a fan of affiliate marketing for as long as I can remember. I make a steady income online thanks to affiliate marketing.
However, the resurgence of MRR (Master Resell Rights), has piqued my interest enough to consider selling digital products myself.
Like you, I like to know as much as I can about a topic before taking action. Hopefully, what I share here in this MRR vs affiliate marketing post will also help to clarify for you the difference between MRR and affiliate marketing.
Summary of MRR VS Affiliate Marketing
| Feature | MRR (Master Resell Rights) | Affiliate Marketing |
| Definition | Buying a license to resell the MRR product and passing along those same rights to your customers. | Promoting another company’s products in exchange for a commission for every sale you refer. |
| Ownership | You obtain ownership rights to the product. | There are no ownership rights. You promote other people’s products. |
| Profit Model | Keep 100% of every sale that you make. | You earn a percentage of every sale (a commission rate.) |
| Control Over Pricing | Product can be priced at the same amount you purchased it for or higher. | No control over pricing. The product owner controls pricing and commission rates. |
| Marketing Material | You’re responsible for creating your marketing materials. | Product owner may provide graphics in the form of banners, email swipe files, etc. |
| Initial Investment | Buying the MRR product. | None. You only need your affiliate links. |
| Risk | There is an initial investment in software and payment processing. | Low to no initial investment. |
| Long-Term Earnings | Can be lucrative so long as the product is trending and in demand. | Possible to create a full-time income leveraging other people’s products. |
Table of Contents
The Definition of MRR
MRR stands for Master Resell Rights. Master resell rights are not a new concept. It has been available to internet marketers for years.
Back in the day, MRR products were primarily in the form of PDF files and sold as eBooks or courses. Even today, MRR products are digital but are now available in video format as well.
When you buy an MRR product, you are also buying a license to become an owner of the product to resell and make 100% of the profit.
Depending on the license, you may be able to rebrand the product as well as add to it. What you can and cannot do will be outlined and it is best to adhere to what is allowed.
Software to Set Up Your MRR Business
To sell your digital product, you will need a platform to sell it on. If your digital product is an online course, then you will need software that also offers hosting for online courses.
There are many good options out there. Here are some that I can recommend because I’ve used them before:
- Clickfunnels
- Kartra
- Systeme.io
- SamCart
- ThriveCart
These options tend to have a high monthly price which can be a challenge for beginners to get started. Systeme.io is the most economical of all options.
What’s great about Clickfunnels, Kartra, and Systeme.io is that you can also build an email list that is essential to your business.
Being able to send marketing emails to your list can help you earn income consistently.
Pros of MRR
Let’s get into some of the pros of master resell rights, especially in comparison to affiliate marketing.
You Get to Keep 100% of the Profit – Unlike affiliate marketing where you only make a percentage of a sale (which is your commission), you get to keep 100% of the sale with MRR.
There is More Control Over the Product – Since you license the product to sell as your own, you have more control over pricing and no worry about the product being discontinued by the owner.
It’s a Digital Product So You Can Sell Worldwide – There is no limitation on shipping since you are not selling a physical product. You can sell to a worldwide audience.
Cons of MRR
These cons may not deter you from selling an MRR product but they are still things to be aware of.
You Have to Set Up a Shopping Cart and Payment Processor – This isn’t difficult at all since there is software you can use. Unlike affiliate marketing, you’re responsible for processing payments.
You’ll Need to Provide Customer Support – You can expect to have questions and concerns from your customers. You’ll need to provide a way for customers to have easy access to reach out to you for support. This could be a support email and you can also use a ticketing system.
Be Aware of Possible Refund Requests and Chargebacks – Even if you state that the product is digital and therefore there are no refunds, you’ll still get those requests now and again. Unfortunately, there may even be those customers that do chargebacks. It’s a part of doing business so be aware of it.
Defining Affiliate Marketing
Affiliate marketing is the promotion of another company’s products or services in exchange for a percentage of each sale that you refer. This percentage is your affiliate commission.
All affiliate offers have different commission rates. They can range anywhere from 3% to 75% or more. Commissions can also be a flat rate. For example, a product could offer $47 per sale or if it’s a high-ticket offer, you could make $500 or more per sale.
Affiliate programs are free to apply to and join. Once you’re approved for an affiliate program, you’ll get access to your affiliate links.
An affiliate link is a special link with an ID that is tracked to you so when anyone clicks your link and buys anything, you are credited with the sale.
Software Needed for Affiliate Marketing
When you’re starting, there isn’t much software that you’ll need. The simplest way to start is to paste your affiliate link within your user profile on social media platforms like Instagram.
However, I do not recommend doing that. It is better to build an email list and direct people to your affiliate link within the email messages that you send them.
In that case, you will need to use some type of sales funnel software such as Clickfunnels, Kartra, or Systeme.io.
Other software and things you may need for affiliate marketing include:
- A domain name
- Web hosting
- Email marketing software (GetResponse, AWeber, ConvertKit, etc.)
Pros of Affiliate Marketing
There are many pros to affiliate marketing that I like which is what led me to become an affiliate marketer. They include:
You Don’t Need Your Own Product – There is no need for product creation. You can promote other people’s products as an affiliate and make commissions.
Simple to Start and Low Cost – Affiliate marketing is very beginner-friendly and one of the lowest-cost online business models you can start.
No Customer Service to Deal With – Since you are not processing payments, there is no need to deal with customer service issues. You market the products and make commissions, with zero customer service involved.
Cons of Affiliate Marketing
As much as I like affiliate marketing, it doesn’t come without its issues. Here are some cons to consider:
No Control Over Products or Commissions – Product owners can discontinue products, close affiliate programs, and change commission rates. As an affiliate, you have no control over those things.
There is a Waiting Period for Commission Payouts – Most affiliate programs will have a delay of 30 to 45 days before they pay out affiliate commissions.
MRR vs Affiliate Marketing – Which is More Ideal for Beginners?
I think that affiliate marketing is ideal for a beginner because you don’t have to set up a payment processor and you don’t have to deal with customer service.
It is also fewer start-up costs with affiliate marketing. In most cases, you can get started for well under $100 depending on the strategy you use.
If you prefer to start with MRR, you can still make money with affiliate marketing by recommending products to your customers via your email list.
Also, read about MRR VS MLM.