When it comes to defining resell rights, it's equally important for the individual selling the rights and the one buying them to understand the distinctions between the various types. This will prevent any confusion as to what the licensing agreement allows and will help to avoid any legal problems that may result from the improper use of a resell rights product.

Resell Rights allow the buyer to resell that product and retain 100% of the realized profits. Depending on the language used in the actual license agreement, there may or may not be a suggested minimum selling price. With Resell Rights, the purchaser will not be able to offer the license to resell the product to their customers.

Master Resell Rights, on the other hand, allows the purchaser to give the product away, sell it for whatever price they desire, package it with other products and/or offer the resell rights to their own customers. A product that is sold with master resell rights will generally be more expensive, but it gives the buyer additional options and more freedom in how they choose to distribute the product.

In some instances, Private Label Rights are offered and are the most expensive of all licenses. With Private Label Rights, the purchaser has permission to edit the content, claim it as their own creation and even repackage or rename it to create an entirely new product. In addition, the purchaser can sell the product with their choice of Resell Rights, Master Resell Rights and/or Private Label Rights.

Now that you are familiar with the various types of resell rights, it's time to start thinking about ways to create your own product and start generating some income. The first and most important aspect of product creation is finding a niche. This should be something that you are knowledgeable about so that you can create a product that is built using your own expertise. For instance, if you are a successful eBay PowerSeller, perhaps sharing your secrets with others would be a successful venture. If you are an expert in the world of real estate investing or know how to purchase properties with little or no money down, perhaps this is your niche. If you are a whiz at software creation and have invented a tool that will help to make life easier, you may have just found a new source of income.

Once you have chosen the product that you want to create, it's time to get to work. If you plan to produce the work yourself, that's great. If you don't have the time and need to outsource the project, take the time to choose a freelancer who is knowledgeable in this area and has a good reputation for producing quality work. You may want to consider signing a contract that guarantees you the work will be original and not copied in any way or from any source. Two popular online services geared toward hiring freelancers include http://Scriptlance.com and http://Elance.com.

As a final thought to creating your own resell rights product, make sure that your newest creation is one that will appeal to others. Browse bookstores, shop the software market and read up on what's hot in consumer information. Finding a popular niche that you possess a certain level of expertise in and marketing the right product could be the difference in a little extra cash and a full-time income.