How to Become a Software Reseller?

Are you interested in the world of Software and technology? Do you want to start your own business but don’t want to build the Software from scratch? Then, becoming a software reseller might be the perfect opportunity for you! This article provides detailed information on what it takes to become an effective software reseller.

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What is a software reseller?

A software reseller is a business or individual that purchases software products from developers and vendors and then sells them to end-users. The reseller acts as an intermediary between the software producer and the consumer, providing valuable services such as marketing and customer support.

However, many software resellers have stopped buying Software in the last decade. Instead, they purchase monthly SaaS fees, look for users, join affiliate programs, and find new customers through marketing or SEO channels.

How to Become a Software Reseller?

To become a software reseller, you must apply to a SaaS reseller, white-label, or affiliate program. In this case, you will be paid if you find customers for a particular SaaS solution or Software and get revenue share or CPA commission for each new client without physically purchasing the Software.

A software reseller is a business or individual who purchases Software from developers and then resells it to customers. This has become a particularly lucrative business model with the advent of Software as a Service (SaaS). There are different ways to become a software reseller: conventional SaaS reselling, white-label SaaS reselling, and affiliate marketing programs. Each has its unique attributes and benefits. This article provides a detailed guide on how to use each method.

I will try to add affiliate programs as part of the software reselling because, in modern days, the Software is not only a program on CD; it is usually a service in the cloud that people use, where finding customers is the most important goal.

SaaS Reselling

SaaS reselling involves partnering with a SaaS provider to sell their software solutions to your clients. The SaaS provider often offers some support, such as handling updates and maintenance, while you focus on customer acquisition and service. Here are the steps to becoming a SaaS reseller:

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Step 1: Identify the Right SaaS Provider: Look for a software provider whose solutions align with your target market’s needs. Evaluate the Software’s features, customer reviews, pricing structure, and level of customer support.

Step 2: Establish a Reseller Agreement: Once you have identified a potential partner, negotiate a reseller agreement. This agreement will detail the terms of your partnership, including the commission structure, support responsibilities, and guidelines for branding and marketing.

Step 3: Develop a Marketing Strategy: After finalizing your reseller agreement, promote the Software to your clients. This could involve digital marketing, in-person sales meetings, or hosting webinars to demonstrate the Software.

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Step 4: Offer Ongoing Support: Ensure you can provide ongoing support to your customers, as they’ll likely have questions and need assistance with the Software. This might involve setting up a dedicated support team or outsourcing customer service to a third party.

White-label SaaS Reselling

White-label SaaS reselling is when you purchase a software solution from a developer, rebrand it as your own, and sell it to your customers. The benefit of this method is that you can establish your brand in the market without developing a product from scratch. Here’s how to go about it:

Step 1: Find White-label Software: Not all SaaS providers offer white-label solutions. So, your first step is to identify software providers offering white-label options. These platforms allow you to rebrand the Software, customizing it to suit your brand identity.

Step 2: Negotiate a White-Label Agreement: Similar to the SaaS reselling agreement, a white-label agreement will set out the terms of your partnership. However, it will also include provisions for rebranding the Software.

Step 3: Rebrand the Software: Work with a team of designers and developers to rebrand the Software. Ensure the end product is consistent with your company’s brand and image.

Step 4: Market and Sell: Market your Software to your target audience once it is ready. Remember, as far as your customers are concerned, this is your product. You’re responsible for all customer service, support, and updates.

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Affiliate Marketing Programs Instead of Software Reselling

An affiliate marketing program is when a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s marketing efforts. If you wish to become a software reseller through affiliate marketing, follow these steps:

Step 1: Find Software with an Affiliate Program: Some software companies offer affiliate programs. These programs pay a commission for each customer you refer to the software company. Start by identifying a software product you believe in and see if they have an affiliate program.

Step 2: Apply for the Program: Once you have found a suitable program, apply to become an affiliate. Each company will have different requirements, so read the terms carefully.

Step 3: Promote the Software: As an affiliate, your main task is to promote the Software. This could involve writing reviews, creating tutorial videos, or advertising the Software on your website or social media channels.

Step 4: Earn Commissions: You earn a commission each time someone purchases the Software through your referral link. The commission rate will vary depending on the program but can range from a few percent to over 50%.

Becoming a successful software reseller requires commitment, good marketing skills, and excellent customer service. Whether you choose SaaS reselling, white-label SaaS reselling, or an affiliate marketing program, the key to success is selecting the right product and understanding your customer’s needs.

Software Reselling as a Traditional business

In the digital age, Software has become an integral part of our lives, empowering businesses and individuals to streamline processes, enhance productivity, and accomplish tasks efficiently. Traditionally, purchasing software and reselling licenses was a common practice. However, the technological landscape is evolving rapidly. New models, such as Software as a Service (SaaS) and affiliate programs, are revolutionizing how customers find software solutions without needing to buy and resell them. This article explores the reasons behind the decline in software purchases for reselling and the rise of SaaS and affiliate programs as alternative methods for finding customers.

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The Decline of Software Reselling:

In the past, software reselling was a lucrative business model for individuals and organizations. Software vendors sold licenses to resellers, who then marketed and sold the Software to end-users. However, several factors have contributed to the decline of this practice.

High Costs and Risks: Purchasing software licenses upfront often requires substantial investments, making it a high-risk endeavor for resellers. Additionally, the responsibility of marketing, distribution, and customer support placed a considerable burden on resellers, further increasing costs.
Rapid Technological Advancements: Technological advancements have accelerated in recent years. Software updates and new versions are released frequently, rendering reselling licenses for outdated Software less appealing. Customers now demand cutting-edge solutions and expect continuous updates and improvements.

The Rise of SaaS:

Software as a Service (SaaS) has emerged as a dominant model in the software industry. With SaaS, customers no longer need to purchase and install Software locally. Instead, they subscribe to a service hosted on the provider’s servers and access it via the Internet.

Lower Entry Barriers: SaaS eliminates the need for upfront software purchases, making it more accessible for customers. They can subscribe to the service monthly or annually, paying only for what they use, thus reducing financial risks.
Seamless Updates and Support: SaaS providers handle software updates and maintenance, ensuring customers can always access the latest features and improvements. Additionally, customer support is often included, relieving users of the burden of troubleshooting technical issues.
Scalability and Flexibility: SaaS solutions can quickly scale to accommodate the needs of growing businesses. Customers can adjust their subscription plans as their requirements change, avoiding the need for additional investments in software licenses.

The Power of Affiliate Programs:

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Alongside the rise of SaaS, affiliate programs have become a famous avenue for software providers to reach new customers.

Performance-Based Marketing: Affiliate programs allow individuals and organizations (affiliates) to earn a commission for promoting software solutions and generating sales. Affiliates leverage their online presence, such as websites, blogs, or social media channels, to drive traffic and referrals to the software vendor’s website.
Expanded Reach: Through affiliate programs, software providers can tap into affiliates’ vast networks and audiences, extending their reach to new markets and customer segments they may not have otherwise reached.
Cost-Effective Marketing: Affiliate programs operate on a performance-based model, meaning vendors pay commissions only when a sale is made. This cost-effective approach minimizes upfront marketing expenses while incentivizing affiliates to promote the Software actively.

Conclusion

The landscape of software purchase and reselling is changing rapidly. The traditional model of purchasing software licenses for reselling is declining due to high costs, risks, and the rapid pace of technological advancements. In its place, SaaS and affiliate programs have emerged as powerful alternatives for software providers to reach customers directly without reselling. SaaS offers accessibility, flexibility, and seamless updates, while affiliate programs leverage the power of performance-based marketing and extended reach. As the software industry evolves, embracing these innovative models is essential for vendors and customers seeking efficient, cost-effective solutions.

Please see our related reseller articles:

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