The Only Guide You’ll Ever Need To Partner with a Software Reseller

Icon-watch 12 min read
Icon-date Dec 22, 2023
Danielle M.

Customer Success Coordinator

The Only Guide You’ll Ever Need To Partner with a Software Reseller


    In the fascinating world of partnerships – and no, we’re not talking about those awkward dance moves you bust out at weddings, there are a couple of wild-card players you have to engage. These are the guys who make your business dreams come true, like your usual corporate partners, tech-savvy workers, and even those friendlies who refer your product to a new end user.

    However, given that you’re likely a software company, dedicated account manager, c-suite software publisher, head of growth, or even channel partner, you have to realize who the real superstars of the game are: Software Resellers!

    In a world where SaaS (Software as a Service) companies, tech companies, and small businesses need partnerships to not only survive but also thrive, Software Resellers — also known as software distributors or service providers — stand out, and you have to know how to partner with them so your business enjoys their full advantage to offer services. So, lucky you, because you’re about to get that information right here and right now.

    Feeling lost about software reselling

    Feeling lost? We’ve got you covered.

    I. Who are Software Resellers, and why do You Need Them?

    You know that feeling when you’ve got this super amazing software, but that’s the thing — it’s just you who’s got it, and you’re thinking, “Hey, world, why exactly are you guys sleeping on this greatness?” Well, that’s precisely where the software reseller dream team comes in! This isn’t your regular sales crew – oh no, it’s a league of extra-skilled people whose job is to take your software, spread every piece of information about its benefits far and wide, and sell it to a wider market.

    I mean, imagine your software – an accounting software, for instance – not just hanging out in one corner of the digital universe, but going viral, making customers for your SaaS business in all the right places! That’s the idea behind software resellers. You’re a software provider, and instead of relying solely on your in-house sales squad, with software resellers, you’ve got middlemen between both the vendor and end user, hustlin’ to make your software the next big thing.

    And guess what? When this partnership jamboree is done right, it’s not just coins jingling in your pocket. Oh no, it’s a grand parade of benefits! Of course, your business will receive increased profits, but you’ll also get to stretch your market muscles and strut your company brand like never before.

    Reseller ecosystem

    What a Software Reseller does and how they do it.

    Now, let’s take a closer look at why exactly you need Software resellers or better, Software reseller programs for your business:

    Supercharged Market Control

    Software companies rarely ever become rulers of the marketplace by themselves, so they achieve that feat by using software reseller agreements to partner with software resellers. Software Resellers have the power to expand your business’ reach like it’s nobody’s business (no pun intended); it’s literally why they exist. They have a group of customers you’ll receive an all-access pass to, they speak the language of their end user base, and they’ll know how to build campaigns for your software using an affordable budget, a very particular set of skills, services, and manpower.

    Additional Sales and Marketing Expertise

    Think of Software resellers as the Robin to your Batman in business. They know all the best secrets of sales and marketing success you need to get your software products into every nook and cranny of your target market. They also know the proven strategies, mind-blowing campaigns, and industry insights businesses need to become more profitable.

    Customer Satisfaction

    Software Resellers come with smaller customer bases, and that allows them to deliver personal attention to each customer, creating customer satisfaction with your SaaS solutions. Also, because of their small customer base, software resellers are faster than a lightning bolt in resolving customer queries — product installation and the likes, faster than you can imagine. They also come up with tailored solutions for your clients and your business dreams, so through them, your customers get less waiting time for their queries, and your in-house customer support team gets less work.

    No truer words have ever been said.

    Cost Savings and Efficiency

    I’ll be honest: it’s a bit weird reading that you have an opportunity to save money by spending it. What we’re used to is “spend money to make money” or “to save money, just don’t spend it,” but fortunately, with software resellers, you’re playing a different game where you spend money not just to make and spend and make and spend, but save as well. Here’s how it works:

    Say you’re a small company, ready to take on the world, but you know that hiring all the best brains for your marketing and sales dream team would be like trying to fit a camel through the eye of a needle — not gonna happen! In that case, you go on and get a software reseller for your business, and bam! Suddenly, you’ve got a whole squad of sales and marketing experts jazzed up and raring to go to promote and sell your product, all without you breaking a sweat.

    Sounds like savings and cost efficiency to me, doesn’t it to you?

    So, if you’ve been asking yourself how your SaaS company can expand its revenue and sell the products you have to offer on easy mode, software resellers are the answer.

    Now, if we’ve got you convinced, let’s take a look at the different types of Software Resellers you may meet while engaging this group of sales professionals.

    II. Understanding Software Reseller Business Models

    When you’re going into a partnership with a software reseller, you’ve got to understand what type of model they function under. It will help you know what to expect from them and how to approach your software reseller agreement with them. Currently, when we look into the wild and wonderful world of best reseller programs, we’ve got two models strutting their stuff under the spotlight.

    Let’s meet them already:

    Managed Service Providers (MSPs)

    MSPs are like good ol’ buddies that always have your back. They function based on a subscription-based service, and they’re not just here for a quick coffee break — oh no! They’re in this for the long haul.

    Their goal usually is to boost the money they gain from subscriptions since that’s their primary source of revenue, also known as Monthly Recurring Revenue (MRR). It makes them the ultimate technical support squad because to achieve that, they’ll sweep in, save the day, and manage your software as well as money can buy.

    BUT – and here’s the twist – partnering with MSPs might add a pinch of complexity because they’re basically maestros at customer success — it’s their thing, so in helping you resell your software, they’ll typically juggle managing your software on behalf of your own enterprise clients too, like it’s a three-ring circus. When that happens, your usual Customer Success routine might need a swanky makeover, but hey, it’s all worth it in the end, right? For the full scoop on cracking the MSP code, check out this “Guide to working with MSPs.

    Value Added Resellers (VARs)

    Now, Value Added Reseller is a different ballgame because their expertise lies mainly in customization. When you give them the license needed to market your software, they just love to sprinkle a little additional value on top of your software for kicks. We’re talking nuts, sprinkles, and a cherry on top, too.

    Value-added reseller chain
    How VARs work, in a nutshell.

    They are very innovative software resellers who’ll help you identify problems with your software, and even whip up nifty solutions to these problems, and additional professional services that make your software more marketable.

    Now, don’t say we didn’t warn you, but when you partner with VARs, you’re basically signing up for some training and high-fives regarding how your product can be made better and marketed. So, it goes without saying that VARs work closely with whoever partners with them, knowing the ins and outs of your software, and helping you plant the seeds for a profitable product in the foreseeable future.

    If you’d like more juicy details on what it’s like to work with VARs, flip through this “Guide to working with VARs.” Next, let’s see how you can actually have a successful partnership with a Software Reseller.

    III. How to Have Successful Software Reseller Agreements

    Creating a successful Software Reseller Partnership actually begins with the one person you may or may not expect. That’s right, genius, it starts with you and you alone. In the technical sense, we’d call the process you’re about to read on, “creating your very own software reseller model”, but let’s skip the technical language for a minute.

    With these steps, you’ll have what it takes to make the best reseller programs for your company:

    STEP 1: Scout the Coolest Software Reseller Partners

    When you decide to engage a software reseller squad, you’ve basically decided to build a team — the ultimate super team, but for selling your software. To do this, look for partners with a knack for your stuff and people who know your target market like the back of their hand. Consider their rep, their marketing resources, their sales mojo, and their ability to swoop in with tech support when things get a little… glitchy.

    Also, like you’ve seen, not all software resellers or software reseller programs are cut from the same cloth. They operate with different models of their own, so do your research, and choose your software reseller programs based on your product’s needs and personality. Also, you don’t need to have as many software resellers for your product as possible, make your picks wisely and part of doing that involves picking quality over quantity every time.

    Also, look for people who understand your business dreams and share your values and culture. After all, business most times isn’t just business; it’s a bunch of people who’re in sync with each other, coming together to create some magic. So, you want to be in sync with your software reseller partners.

    And don’t forget, you want partners who’re ready to put a ring on it, for the long haul. You want to make a software reseller agreement with people who’re not just in it for the free snacks – they’re ready to invest time and energy, just like you.

    STEP 2: Pricing and Commission

    Let’s talk money! When you’re going into a software reseller agreement with a software reseller, your pricing and commission game has to be strong. If you come on with a total bargain basement situation, your potential resellers might bail faster than a cat at a dog party. But if what you bring to the table is too rich for their blood, they might just give you the cold shoulder, and you’ll never hear from them again.

    So, it’s all about finding the sweet spot, that nice balance where you get the profit you deserve while still keeping the software resellers happy and motivated to sell your software products. And remember, your pricing model and the commission structure you agree on have to make sense for you and the software reseller.

    STEP 3: Training and Onboarding

    This is the part where you make it official and transform your software reseller squad into a lean, mean, selling machine. You have to train and onboard them, give them access to everything they need to know about your software, and even train them on how to sell it to your customers and prospects. Also, let them know what benefits they stand to gain by selling your software, what’s in it for them if they bring in more customers, and why they should choose your product over others.

    It’s not just about what you’re selling; it’s about how you’re selling it as well. So, train them to talk the talk, walk the walk, and sell the socks off your software.

    STEP 4: Marketing and Sales Strategies

    When it comes to marketing and sales strategies, you’ve got to bring your A-game because, at the end of the day, this is what will drive your partnership home. You and your software reseller need to be on the same page about your software product’s unique selling propositions, your target audience, and the key messages you want to communicate to them.

    Also, you need to agree on the marketing materials your software reseller will use to sell your product, the campaigns they’ll run, and even the events they’ll attend to promote your software.

    In short, you and your software reseller need to be like two peas in a pod, working together to make your software the next big thing.

    STEP 5: Technical Support

    Now, here’s where you turn your good partnership into a great one. When you provide top-notch technical support to your software reseller partners, you’re basically giving them the tools they need to sell your product like hotcakes. So, make sure they have access to your support team whenever they need it, give them the training they need to troubleshoot common issues, and even provide them with resources like FAQs and knowledge bases to help them help their customers.

    Remember, the more support you provide to your software resellers, the more successful they’ll be at selling your product, and the more successful they are, the more successful you are.

    STEP 6: Review and Improve

    Finally, don’t forget to review your software reseller program regularly and make improvements as needed. Talk to your partners, get their feedback on what’s working and what’s not, and use that information to make your program even better. Remember, the goal is not just to have a successful software reseller program but to have the best software reseller program possible.

    And there you have it, folks! With these six steps, you’ll be well on your way to creating a successful software reseller program that drives sales, boosts revenue, and helps your business grow.

    In conclusion, if you’re a software company looking to expand your market reach and boost your revenue potential, partnering with software resellers is the way to go. They bring additional sales and marketing expertise, customer satisfaction, cost savings, and efficiency to the table, making them valuable allies in your quest for business success.

    So, what are you waiting for? Start scouting for the coolest software reseller partners, set up pricing and commission structures that work for both parties, provide comprehensive training and onboarding, align your marketing and sales strategies, offer top-notch technical support, and regularly review and improve your software reseller program for maximum effectiveness.

    With the right software reseller partners by your side, the sky’s the limit for your business growth and success!

    Danielle M.

    Customer Success Coordinator

    LinkedIn icon

    Danielle is a dedicated Customer Success Coordinator with a flair for orchestrating optimal workflows for customers. She is well-versed in partner management.

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