The thread on Tony's forum seems to be discussing the spread of unlimited, unqualified Reprint Rights, which is a marketing strategy and not a business.
Various marketers have misused the original Rights concept by offering their product to anyone that will buy it for onselling. It's a promotion - not a serious business - and so the conditions surrounding it are different too.
Most products sold this way are advertising gimmicks. A Right only becomes valuable when the product is.
When I first started selling my own Rights, I didn't forsee the popularity of the Reprint Rights business. If I had, I wouldn't have sold mine for a pittance (US$900), nor restricted them to 20-only holders world wide. I intended them to be sold as mini-businesses, and the owners would benefit by profiting from the sales, just the same as in the off-line world.
Nevertheless, some owners - like Ken Envoy and Allan Says - offered my product free as a bonus to signing up for their own enterprises. They came up with this clever twist that gained them a growing mailing list among other things. Of course you had to buy their product in order to get their bonuses, so in a sense the ebooks were not provided 'free.'
But they were quite within their right to give away the product in the spirit of free competition.
Your question about the dilution of value because other right-holders offer the same product for less is a relevant one.
But the fact remains that there will always be competition in any marketplace. Look at any number of similar stores in a city. You can buy the same item at10 different prices if you look hard enough. You can also see an item at normal price one week and discounted heavily the next in a sale. There are even websites that get you the lowest price for any item.
Pricing is only one part of the selling strategy.
The answer is to make your product different from the others in the same way that Ken And Allan have done... bundle it with other products in a special mix, give longer guarantees, offer personal consultation, give it away as a competition prize, make it free as a condition of buying another product... the list is endless.
At the end of the day, it's your own ingenuity that will make the difference.
I wouldn't cave in to your customer's demands. It's a common ploy to get stuff free, and everyone in business sees it happen - especially on the net. Just remind your freeloaders that free enterprise doesn't mean they can come back and demand a refund if the same product is elsewhere cheap.
Instead, point out to them that they are getting x number of advantages from buying from you, and make your case strong with the suggestions I've brought up above.
Hope that helps.
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