Value-added reselling is roughly a form of passive income. However, it is still a good enough approach for us to look at it as an option. This approach can lead us quickly to a product for a side hustle and maybe even the automation required to limit our required hours each week. We will not always find this to be a passive approach to income. Nevertheless, it can be done with proper outsourcing.
Customization vs. Value-Added Reselling
There are several ways to add value to a product. When one thinks of value-added reselling, often the addition is in the form of services, packaging, or delivery. However, you can also extend a product or provide customization or configuration that is not available OOTB. This process can then be outsourced and provide a revenue stream that is mostly passive.
Build On Success
The best thing about this approach is starting from a known quantity. You are building on the sales and marketing of others. They created the product and built some level of a customer base. The number they currently have will give you an idea of what to expect. Of course, you are making changes. Nevertheless, the bottom end of your sales should be at least where the raw products are. This approach gives you a baseline of expectations and a short path to getting a product out the door (with less risk).
New From Old
There are many ways to go from the concept of value-added reselling. That includes the ability to combine products in a way that creates a new one. For example, you could combine a USB drive and a flashlight. This example is hardly ground-breaking, but it could be a way to generate income. You could even box up products and sell it as a subscription. These are very popular and also have become a sort of cottage industry. Check out CrateJoy for some good examples and a platform for launching your own.
