How to Start a Software Reseller Business


In 2022, there are numerous paths to becoming a software reseller. For instance, affiliate marketing pays you for bringing clients to a business. Alternately, you might start a business as a value-added reseller that offers software as a service. We'll look at how to become an authority in software resale in this article.

What Is the Process for Software Reselling?

Different types of software resale operate in different ways. Here are some of the most widely used techniques.

1. Affiliate marketing

Affiliate marketing is a great option for those with access to a large audience interested in particular software and data products. This business strategy pays affiliates a commission when a customer purchases the program after they have promoted it to their audience. Once they have made their referral, the affiliate typically has little further influence over the outcome.

2. The Agent Model

Agents who locate software for end users are known as software resellers. Enterprise clients who lack the time or competence to find software on their own can generally get assistance from these organizations. The brand of the software developer is used for sales. To organize the company's software, agencies may charge a set fee or a portion of each contract.

3. Value-Added Reseller

A company that provides a certain service can resale the software required for them to do so under the value-added reseller model. For example,

  • CRM software can be licensed and sold again by an inbound marketing company.
  • Antivirus software could be licensed and sold again by an IT security company.

4. White label Model

In the white label business model, a software reseller purchases a product and markets it under their own brand. The software inventor is often paid a set fee by the reseller, who is then free to use the product anyway it pleases. The client might not be aware that another company developed the software because the entire sales process is conducted under the reseller's brand. Software distributors are frequently referred to as agencies since they enjoy greater price flexibility and don't have to handle all customer relations. Re-branding is frequently utilized by agencies to provide their clients with a supplementary service. For example, a marketing firm could use a white label app builder to provide its clients an app.

5. Source Code Model

Software vendors occasionally sell the source code for their products and resell them. The reseller in this model has the most control, but they will need some technical know-how to modify the code to meet the client's requirements. This enables the software reseller to customize the code and package it however they see suitable.

How to Be a Successful Reseller

Many of the elements that contribute to your competitiveness will remain the same regardless of the software resale strategy you select.

1. Have strong sales and marketing skills

Selling the product is the most crucial aspect of your role as a reseller. Consumer software is often inexpensive, therefore in order to turn a profit that is worthwhile, you must sell a lot of it. On the other side, you'll need to be adept at handling extended sales cycles if you're reselling expensive enterprise software.

2. Have an Audience Now or Be able to Develop One

If you already have a clientele or market that you can sell to when reselling software, it can be helpful. You might succeed with affiliate marketing, for instance, if your blog has a large readership. Rebranding B2B or SaaS software, however, may be successful for someone with a large network of small business contacts. It's important to pick a product that will appeal to the audience you can reach.

3. Recognize the concerns of the customer

To successfully resale software, you don't need to be an expert in a particular sector of the economy. You ought to be well-aware of the problems your consumers are dealing with, though. As a result, you will be able to present the software you are offering as a remedy.

4. Setting Yourself Up Well

In your company, you probably won't be the only one reselling a specific piece of software all the time. If so, you must find a strategy to set yourself apart from reputable dealers. Selling the program to clients in a certain industry, about which you have extensive knowledge, can be one approach to achieving this.

What You Need to Do to Start Selling Software

Since programs are so common, getting engaged in software reselling is rather simple. Here are some things to think about.

1.Select Your Reselling Strategy

You must first determine which resale strategy is ideal for you and your company. Although you'll be least involved in the selling process, affiliate marketing often has the lowest commission. While the profit potential for white label reselling is often higher, you will need to offset this by handling the full sales process and providing after-sales support.

2. Pick a Product

The next step is to pick a software item to resell. To determine which goods and services your audience or connections will be most interested in, look at them. Additionally, you want to think about how every piece of software differs from the others. Here are some warning signs to watch out for:

  • Does the software work well? Regardless of how skilled a salesperson you are, weak software will make it difficult for you to close deals. Make sure the product you select truly meets the demands of your customers.
  • How much will each sale bring in? This is crucial, but you should be aware that not always the platform with the highest salary will yield the highest earnings. A product that is more popular or of higher quality might justify a smaller cost per transaction.
  • Exists any recurrent income? Some SaaS companies offer ongoing compensation in addition to the initial referral fee.
  • Does the software developer offer promotional materials? Software companies frequently provide their resellers with materials to aid in sales and marketing.

3. Consult with software companies

The following stage is to negotiate a contract with the businesses to resale the product. Many software vendors will already have a system in place that specifies pricing and other crucial information.

4. Start Your Sales

After selecting your software, you may begin selling. If you pick a product that appeals to your target market and is appropriate, it shouldn't take long before sales start to flow.