Some have the skills to create a product or service from scratch, while others have the skills to endorse it and build a business out of it. There may be people who can do both but lack enough time and resources.
However, these limitations should not prohibit you from launching and growing your business. This is where reselling partnerships can play a critical role in bridging the gap and allowing anyone to sell products and services to their customers.
Since SaaS platforms and services are in demand, today we will specifically discuss reseller SaaS partnerships. Stay tuned and find out all about reselling SaaS. Read till the end and discover tips to start your own reselling business with ease.
In this blog
- What is a Reseller SaaS Partnership?
- How is SaaS reselling different from affiliate partnership?
- How are reseller partnerships monetized?
- Benefits and drawbacks of a reseller partnership
- Frequently Asked Questions
What is a Reseller SaaS Partnership?
In this section, we will introduce to you the concept of reseller SaaS partnerships.
But first, what is SaaS?
SaaS stands for Software-as-a-Service. It is a model for software licensing and distribution and is now synonymous with most subscription-based platforms and services available on the web. Here, the cloud provider hosts the software centrally and makes it available to users through the internet.
SaaS products and services have a wide range. From entertainment platforms like Netflix to an advanced no-code Android and iOS app builder software like AppMySite, SaaS is everywhere as is used across the globe in some or the other form.
Now, what are reseller SaaS partnerships?
Reselling is the process of selling a third-party product, often white labeled as your own, to your customers. As the name suggests, reseller SaaS partnerships are where resellers partner with a SaaS provider and resell the services under their banner.
The providers often allow white labeling of the SaaS product or service they offer. This enables resellers to rebrand the product, service, or platform as their own, and offer it to their customers while making a profit on the margin.
How is SaaS reselling different from affiliate partnership?
In a typical affiliate partnership, affiliate marketers only endorse a product created by a business among their clientele or audience base. They may or may not be a traditional business entity as bloggers and content creators can also become affiliate partners.
On the other hand, resellers do not just endorse the product but repackage and sell it to their customers. White label resellers rebrand the whole product as their own and extend it to their customers and clients. Therefore, unlike affiliate marketers, resellers do not earn on a commission basis but generate revenue through sales.
It must be noted that resellers can simply sell the product or service offered by the white label SaaS provider or couple it with their other offerings to ensure value-added reselling. For instance, an entrepreneur interested in the app development business could simply resell DIY app builder solutions to their customers.
On the other hand, a business that creates POS solutions for eCommerce can also become a reseller and offer eCommerce app development services to its customers. This will add more value to their existing offerings and enable their customers to get multiple solutions under one roof.
How are reseller partnerships monetized?
Reseller partnerships can be monetized in a number of ways. Different platforms may have different monetization arrangements and resellers must consider this carefully before getting into any partnership.
How the partnership is monetized depends upon the pricing model of the SaaS provider or the terms of the partnership agreement. However, some of the most popular methods are as follows:
- Flat one-time/subscription fee: This is the best monetization technique that benefits resellers. Here, they pay a fixed one-time payment or a monthly/quarterly/annual subscription fee. Thereafter, resellers can sell the product at their desired price and the vendors demand no percentage on sales or profits.
- Revenue sharing: As the name suggests, here the resellers share a percentage of the revenue with the SaaS solution provider. The providers ensure a payment and billing system that is shared with the reseller in order to ensure transparent distribution of commissions or revenue share.
Apart from the methods listed above, vendors also implement other techniques like charging resellers for every API call or integration, selling add-on products or services, charging additional fees for maintaining and scaling the product, and more.
In turn, resellers can also use one or more methods of monetization listed above as they sell the product or service to their customers. It is highly recommended to find a SaaS vendor that does not really interfere with your sale processes and allows you to freely resell the product to your buyers and consumers.
Benefits and Drawbacks of a Reseller Partnership
A well-executed reseller partnership can be a win-win and beneficial for everyone involved. This includes the vendors, resellers, clients, and end users or customers.
While the vendors get a new and ready-made market or client base through the resellers, their partners also reap multiple benefits by reselling the SaaS products or services.
Some notable benefits of getting into a reselling partnership are as follows:
Benefits for resellers
- Everything from research and development is handled by the vendor partner.
- No investment in creating or maintaining the infrastructure is required.
- Can offer a completely new product or service to customers under one’s own brand name.
- Establishing credibility takes little time with an already-known product or service idea.
- Resellers can easily enter any new market or turf and gain clients and business.
- Businesses can add more value to their existing offerings by enabling additional SaaS.
- Marketers and businesses can bring multiple products and services under one roof and create a one-stop solution.
Everything under the sun has some limitations and so does a reselling partnership. While there are multiple advantages, reselling SaaS can also have some disadvantages. Some drawbacks of becoming a SaaS reseller are as described below:
Drawbacks for resellers
- Some software may have a learning curve and require preliminary training.
- The quality and potential of the products depend upon the provider.
- Lack of control and authority over the product can cause friction.
While reselling may come with some limitations, a lot depends on the SaaS provider and the ability of the reseller. For instance, as a reseller, you can always go with a simpler solution to avoid spending time on training sessions.
This is just one example. The best solution is to try the SaaS product first and then sign up for a partnership program. This will give you a first-hand experience of what is coming and enable you to invest your resources in the right product or service.
What is in it for the vendors?
While we discussed the pros and cons of a reselling partnership for resellers, you might also be intrigued to know how it affects those who offer such partnerships.
As we discussed above, reselling partnerships are a win-win for all. Resellers get a ready-to-sell product or service that they can capitalize on and earn benefits from. Whereas the onus of making the product falls on the SaaS provider while resellers reap the benefits as the product grows.
However, this in turn also helps the vendors as they get an added opportunity to amplify their product’s reach. They can enter a new market through the resellers and sell the product to customers who might not be within their own reach. Thus, a reseller partnership proves to be advantageous for both parties.
What is in it for the end customers?
The end users, consumers, or customers get benefited from such partnerships. They get access to multiple products and services under one roof and can make purchases from their trusted sellers.
As the cost of creating and maintaining the product is reduced, resellers can ensure competitive pricing. This in turn enables customers to get access to desired products and services without breaking the bank.
Therefore, we can safely reiterate that reseller partnerships benefit all the parties involved. The SaaS providers get a new market and customer-base, the resellers get a ready-made solution, and the customers get the benefits of easy accessibility and affordability.
That was all about SaaS and reseller partnerships. If you are planning on becoming a reseller, SaaS is the best option in the tech-driven market across the globe. It has low to minimum entry barriers and ensures long term profitability and success.
If you are interested in app development, you can enroll for AppMySite’s agency partnership. We know that mobile apps are the present as well as the future. Similarly, no-code is the tech of the future. Fortunately, AppMySite brings the best of both worlds together.
With our DIY app builder, you can create premium apps instantly without coding. As a reseller, you can white label our solution and resell it to your customers. How you resell our product is totally under your control.
You can connect with us and get onboard with our white label agency partnership. Either mobilize your staff to create apps for your clients or simply sell the no-code app development solution to your customers directly. The choice is yours!
Frequently asked questions
What is SaaS?
SaaS, or Software-as-as-service, is a subscription-based software distribution model. Here, software centrally hosted by a provider is made available to end users or customers through the internet. For example, web hosting services are a form of SaaS. SaaS platforms are highly popular among resellers as it is the easiest to repackage and sell.
Is reselling SaaS profitable?
SaaS is all around us. From entertainment to online business, SaaS is ruling in every realm. As cloud technology is the future, the relevance of SaaS platforms will continue to grow. According to Statista, the worth of the global SaaS market is expected to reach 232 billion US dollars by 2024. Therefore, it is safe to assume that becoming a SaaS reseller can be a profitable idea.
How can I become a SaaS reseller partner?
The best thing about SaaS products and services is that resellers do not require any additional infrastructure or setup to start reselling them. Therefore, all you need to do is to find a SaaS solution that aligns with your business goals and targeted audience. Once you have identified a reliable solution, you can simply sign up for it and get started. While the onboarding process may differ for different platforms, it should not take too long. Once you are set, you can start reselling to your customers immediately.
Where can I find a reliable SaaS reseller program?
The choice of a suitable SaaS program depends on a range of factors like – your targeted audience and business niche; personalized interests and business goals; current trends and demands of the market; and so on. You can try out AppMySite’s white label reselling program for agencies. It is a new-age SaaS solution for building native apps without any coding. As the world is moving from web to apps, AppMySite can be a profitable and future-proof investment for reseller partners.
How does resellable SaaS differ from regular SaaS?
Most SaaS products are suitable for both B2B (Business to Business) as well as B2C (Business to Customer) ecosystems. Therefore, the core products and offerings may remain the same irrespective of whether the SaaS product is offered directly or through a reseller. In fact, most SaaS platforms do both. However, resellers may get special benefits in some cases in terms of technical and customer support, discounted pricing, and more. Thus, they can avail more benefits than individual customers. However, this may strictly depend on the SaaS provider and the terms of the partnership.