Whether you're an IT professional or just someone looking for ways to earn extra cash by selling off your old Microsoft Office and Windows PCs, there are plenty of opportunities out there if you know where to look. Many companies offer free trials that allow users to test-drive certain programs without committing to buying them outright.
But what happens when they decide they don't want to keep using those apps anymore? What happens if they take their PC home and install something else? For this reason, many people turn to third party sellers to purchase licensed copies of popular applications like Microsoft Excel, Word, PowerPoint, and more. And in some cases, these sales are even legal -- though we'll talk about that later. So let's dive into the world of reselling Microsoft software licenses.
If you've ever tried to buy a copy of Microsoft Office online, then you may have noticed the "Buy now" button is missing. Instead, you see two buttons: Buy now with trial (for $119) and Get It Free! The latter option simply means that you will not be charged until after 30 days. This gives you time to try the product before making any decisions about whether to buy it. In most cases, you won't actually use all features offered within each program during its first month, so it makes sense to give yourself enough time to check things out.
The same goes for other paid programs such as Adobe Acrobat Pro DC ($1,299), which has a similar "Free Trial" button found at the bottom right corner of the page. However, this doesn't mean you shouldn't consider purchasing it. You should instead think carefully about whether or not you need the full version of the application. Many times, you only need the basic functions contained within it. If this is the case, you might find you save quite a bit of money by getting the free version rather than paying full price.
Other programs include Autodesk AutoCAD LT 2020 ($179) and Corel PaintShop Pro X2 Ultimate Edition ($249). These programs also come with a 30 day trial period, but unlike Office and Photoshop, neither of them require a monthly subscription fee. Because of this, you could potentially save hundreds of dollars over the course of several years. But again, the decision comes down to whether or not you really need everything included in the package.
When it comes to working as a reseller, it pays to understand exactly what kind of income potential exists for you. As mentioned above, the best way to determine this is by taking advantage of any available trials and discounts. Other factors to consider include whether or not your customers are willing to pay a higher price for an upgrade once the initial sale is complete. Finally, you must always remember to research and maintain appropriate tax documentation.
For example, you might find that customers are happy to pay a premium for upgrades because of the convenience factor. They aren't necessarily interested in saving money unless it directly affects their ability to work efficiently. On the flip side, you can often negotiate lower prices based on volume purchases. This allows you to charge less per unit sold while still maintaining profits.
In order to begin your own reselling operation, you'll probably need a few different items. First, you'll need access to computers capable of running the various programs you intend to sell. Depending on the size of your company and number of employees, you may need multiple machines. Next, you'll likely need a reliable internet connection. Then, you'll need the necessary software required to set up storefronts, manage inventory, and ship orders. Lastly, you'll need the tools needed to generate invoices, track payments, and other important tasks.
You can expect to spend anywhere between $200-$800 on each machine depending on the type of equipment you choose. Prices vary widely due to differences in RAM capacity, CPU speed, etc., so shop around to ensure you get the best deal possible. Most businesses also invest heavily in cloud-based storage solutions to store files associated with their operations. Again, you can usually find great deals here too.
Lastly, you'll obviously need the proper licensing to legally sell licenses for Microsoft software. To obtain this, you'll typically need to register as either a small business or individual seller through Microsoft Marketplace. There are numerous options available here ranging from beginner packages designed specifically for newbies to enterprise level offerings geared towards larger organizations. Once you select the correct plan for your needs, you'll receive login credentials allowing you to download and install the relevant software onto customer machines.
There's no doubt that you can profit greatly from reselling Microsoft software licenses. After all, you're essentially renting out your clients' hard earned money from them. Of course, the amount of money you ultimately collect depends largely upon the success of your business model.
However, if you follow our tips above, you'll stand a better chance of generating positive results. Also, it never hurts to learn about the ins and outs of reselling before jumping into action. Just remember to thoroughly read any paperwork you sign and ask lots of questions regarding your rights and responsibilities throughout the process.
Mike Young is the founder of SoftwareLawyerBlog.com, a website dedicated to helping both aspiring and established lawyers learn about cutting edge issues related to technology law and policy. He regularly writes articles pertaining to digital privacy, copyright infringement, data security, government surveillance laws, and more.
The term "Software Reseller" means any person who sells products in connection with the offering of services which include the use of computer software.
While the terms'software' and 'computer program' may be used interchangeably in this context, they have slightly different meanings. A 'computer program' refers to the instructions written to perform specific functions on a particular piece of hardware (e.g., a microprocessor). The term'software' can refer to either a single copy of such instructions, or more generally, a collection of such instructions that work together as one unit.
In other words, when we talk about'selling software', what we really mean is selling copies of the code that make up the software product itself -- not simply using some of the functionality provided by the software package.
If you want to sell copies of computer software, however, then you need to get permission from the copyright holder first. This would typically involve obtaining a license agreement from the owner of the copyright. In most cases, these agreements will specify whether the user is allowed to download and install the software onto their own machines, how many times they can re-sell each copy of the software, and whether they must keep all documentation related to the installation process.
As always, check with your lawyer before signing anything!
Types of SRLAs
1) Perpetuity - Allows unlimited sales under the same terms and conditions that were agreed upon at the time the original purchase was made.
2) Term - Limits the number of sales based on the length of the initial license period and/or the amount of money paid.
There are many ways to earn money as a business owner or individual in today’s digital world. Some work better than others – and for some people, making money is their primary goal. If that describes you, then becoming a successful online entrepreneur might be your dream job. It could also be scary if you don't know where to begin. To help you out, we've created this guide on different ways to make money with Microsoft Office 365. We'll discuss what it takes to become an Office 365 reseller, which will allow you to sell subscriptions directly through the cloud-based platform.
If you're considering starting your own business but aren't sure about the specifics, check out our beginner's guide to entrepreneurship. You may consider getting into ecommerce instead, where you can run a website full time while earning passive income. Or maybe you want to focus on affiliate marketing - where you promote other businesses' services by advertising them on your site. There are countless options for anyone looking to enter into the exciting field of internet entrepreneurship. But before diving headfirst into any new venture, there are certain things you should first learn about business ownership.
First off, let us tell you the basics about why you would ever need to become a software reseller. What does being a software reseller have to offer? And more importantly, why should you pay attention to licensing when deciding whether or not to become a reseller? The answer has everything to do with the value of using software, and how important it is to protect yourself legally.
To understand more, here are the three most common forms of software license agreements:
The easiest way to start selling software is to buy it outright at retail price. This method requires no upfront investment or risk because you simply purchase the product at its original cost (minus taxes). However, if you plan to resell the same version multiple times, you must obtain permission from the publisher. In addition, you cannot re-sell software versions that were originally purchased under trial periods.
You can also choose to become an independent distributor, meaning you won't actually own the code behind the software. Instead, you act like a middleman between publishers and customers. As such, you receive commissions based on each sale. However, you still bear all risks involved in owning physical stock since you assume responsibility for shipping orders and fulfilling returns.
Another option is to become an agent. Agents represent companies who distribute software. They often deal with retailers and distributors, and they collect payment upon delivery. Because agents typically only provide logistical support, they receive lower commission rates compared to distributors.
A software salesperson works closely with the publisher to determine market demand. Then they negotiate deals with potential buyers and arrange shipments accordingly. Salespeople usually charge higher fees due to additional costs associated with negotiating contracts and managing logistics.
In order to become a sales professional, you need to acquire specific skills. These include working knowledge of the industry, strong communication abilities, business acumen, and ability to manage relationships. Also, if you intend to start your own agency, you'll probably require experience handling large amounts of cash.
As mentioned above, becoming a licensed software reseller allows you to sell subscription plans directly online via the Microsoft Store. Depending on the type of agreement you sign, you can expect anywhere from $5-$20 per user per month depending on the amount paid annually. A yearly contract usually comes with discounts, so monthly payments tend to be cheaper overall. Plus, you can avoid the headache of setting up storefronts and maintaining inventory.
But keep in mind that just because someone pays you less doesn't mean you're necessarily doing worse. Resellers can make more profit in some cases because they don't have to cover overhead expenses and take care of customer service issues. For example, if a client cancels within 24 hours after signing up, the retailer loses nothing. On the flip side, clients who cancel after 30 days lose 10% of the annual fee. So, even though the initial transaction may seem unfavorable, the long term benefits outweigh the short term losses.
Finally, the best way to ensure success is to build a solid base of repeat customers. When people see you consistently deliver high quality services and solutions, they feel more inclined toward spending larger sums of money with you. By building trust over time, you can eventually convince them to spend hundreds of dollars without hesitation.
When establishing your own software sales firm, choosing your niche is crucial. Just like traditional brick-and-mortar stores, consumers prefer going places where they already know they can find something that appeals to their interests. That means you should always go where your target audience hangs out. Here's a list of popular categories where you can set up shop:
Social media accounts
Once you identify the right category, you should decide on a name for your business. Make sure it reflects your brand identity. Next, you'll need to select a domain name. Finally, you'll want to create a landing page with clear information regarding your offerings. Once visitors land on your home page, you'll want to communicate with them effectively. Use messaging that entices users to take action and encourages them to stay engaged. For instance, you could show testimonials from satisfied customers, explain your offering in detail, and link them back to your main resource center.
Now that you know the ins and outs of becoming a software reseller, it's time to think about margins. Margins refer to the difference between wholesale prices and retail prices. Wholesale refers to buying products at bulk discount. Retail is the standard selling price. Most software resellers use either wholesale or retail pricing models. Whichever model you opt for depends largely on the size of your company. Generally speaking, wholesalers tend to sell smaller quantities and operate out of mom-and-pop shops. Meanwhile, retailers generally handle larger volumes and operate out of corporate warehouses.
Margin calculations vary widely across industries, but you can find average numbers for various sectors. According to Business Insider, tech firms tend to sell at around 80%. Other retailers sell at 20%, and non-profits sell at 15%.
Lastly, if you'd like to explore other avenues outside of software sales, you can look into becoming a consultant. Consulting involves consulting with small businesses and individuals to solve problems. Consultants can also serve as advisors to corporations, helping them streamline processes and improve efficiency.
While exact figures differ greatly from person to person, most experts agree that software reselling offers decent profits. Many top earners report making upwards of six figures every year, while others say they barely break even. As far as business owners go, the sky really is the limit. With enough hard work and dedication, you can easily turn a hobby into a lucrative career. Of course, it helps to have excellent writing skills, good presentation skills, and plenty of patience.
Mike Young is a lawyer at Nossaman LLP specializing in technology law. Learn more about his legal advice and tips on how to succeed on LinkedIn.
Do you want to know what it takes to be an independent software vendor (ISV)? Well, don't worry! There's no need for any special skills or education. All that is required is a good understanding of the current business model and some basic knowledge about licensing law. You just have to have enough confidence in yourself to take on this challenge.
In most cases, if you're going to do this kind of work on your own, you'll find that working with large companies like Microsoft and Adobe will make things easier than trying to deal with smaller ones. The larger companies tend to have better-established relationships with their customers and suppliers, so they generally have more experience dealing with these matters. If you've got the time, energy, and patience to learn everything there is to know about selling software, then go ahead and give it a try. But you should also think long and hard before embarking on such a venture because it could end up costing you quite a bit of money, especially when you factor in legal fees.
If that sounds like something you'd rather not spend too much time considering, here are five tips that might help you decide which path would best suit you. For instance, maybe you prefer to focus on building out your client base instead of worrying about all the legalese involved in buying and reselling software. Or maybe you're interested in starting your own small business but aren't sure where to begin. Whatever your situation may be, we hope our article has helped answer some questions you had about becoming a successful ISV.
One important thing to understand is that being a software "seller" isn't necessarily synonymous with being a "vendor." A "software seller" refers to someone who sells software directly to other people without having first obtained a copy from the manufacturer. This person is usually an individual entrepreneur who owns his/her own website or storefront online. In contrast, a "vendor" is someone who purchases copies of software from a distributor and then redistributes them through retail channels as part of their normal job duties. These distributors often act as middlemen between manufacturers and retailers. They buy software at wholesale prices and then mark them up to cover their costs -- sometimes even charging additional fees as well.
The difference between a software seller and a vendor becomes clear once you realize that anyone who buys software from a retailer must acquire a resell license agreement in order to legally use the product. By contrast, those who purchase software directly from the manufacturer -- either online or offline -- typically do not require a separate license agreement. However, the terms of this type of transaction are still governed by licensing laws, and sellers typically cannot offer discounts below cost unless they obtain permission from the original licensor.
As mentioned above, many large corporations provide themselves with a way around this problem by forming partnerships with third parties known as "distributors." Distributors buy software at wholesale prices and then re-sell it to stores or individuals at higher prices. While this arrangement does allow companies to save money, it doesn't entirely negate the fact that resellers must purchase a license to use the software. And since the price of each distribution agreement depends upon factors such as profit margins, sales volumes, market share, competition, etc., resellers' profits are always limited.
A "dealer," in contrast, is someone who distributes software under contract with its manufacturer. Typically, dealers receive a set number of licenses per year or month depending upon the volume of sales they manage. Since their contracts stipulate minimum requirements regarding customer service, delivery times, and inventory levels, they can usually charge more for each item sold compared to resellers. When calculating overall profitability, however, dealers are less likely to incur significant overhead expenses due to the size of their organizations.
Because they operate within established supply chains, dealers rarely face major problems when negotiating licenses. On the contrary, they often enjoy greater flexibility than resellers when it comes to terms and conditions. Of course, dealers do pay royalties to the licensors -- although these payments vary widely among different industries and countries. As far as I'm aware, only two countries worldwide impose mandatory royalty charges on software licenses: China and Russia. According to industry insiders, the Chinese government uses licensing revenue to fund various social welfare programs while Russian authorities collect royalties to support state-owned enterprises.
At present, Apple remains the undisputed leader when it comes to both hardware and software development. The company released its latest iPhone 12 models last September, and its new iPads arrived back in April 2020. Meanwhile, its Mac operating systems continue to dominate desktop computing.
Microsoft is second place when it comes to sales of PC operating systems. It's followed closely by Google's Chrome OS and Mozilla Firefox browsers, respectively. Although Apple continues to hold strong positions in several key markets today, Microsoft and Google have managed to grab a sizable portion of the pie thanks to widespread adoption of smartphones and tablets.
Finally, the top spot belongs to Amazon, which has recently announced plans to build its own quantum processor chip. Its potential impact on global data centers and cloud services makes it worth keeping an eye on.
This question is actually pretty easy to answer. Vendors are businesses that manufacture PCs, laptops, phones, tablets, servers, printers, scanners, routers, networking devices, and numerous other electronic components and parts used throughout every home and enterprise environment. Their products account for roughly half of all consumer electronics purchased annually.
Since these products contain integrated circuits, chipsets, firmware, and software code, vendors must negotiate deals with the manufacturers of these items. Because the total amount paid for each component varies based on price points, demand levels, and other variables, the exact amounts collected via royalties vary greatly across different regions. Some governments subsidize certain segments of the economy in order to encourage innovation and create jobs. Others impose taxes specifically levied against technology firms. Still others rely primarily on income generated from licensing schemes.
Of course, there are plenty of other ways to earn money from software and gadgets besides selling them outright. Many people opt to sign up for monthly subscriptions that automatically renew after expiration dates. Some choose to lease access to specific applications over longer periods of time. And some make money by offering consulting services related to the design and implementation of custom solutions.
For example, one popular option involves using a combination of free open source tools along with proprietary software developed internally. Software developers can then bundle together these elements into packages that meet clients' needs and deliver value faster than competitors.
There are basically three ways to get a license to sell software. First, you can contact the manufacturer(s) of the software you intend to distribute and ask whether you can sell it. Second, you can approach a local distributor and see if he or she wants to add it to his or her portfolio. Third, you can apply to join one of the many trade associations devoted to promoting ethical practices among software and gadget makers. Whichever route you choose, remember that it won't happen overnight. Your success ultimately hinges upon whether you possess sufficient expertise and resources to succeed as a full-time software salesman.
In addition to gaining relevant technical and marketing skills, you should probably consider acquiring a degree in computer science or information management. Not only will you gain valuable insight into the inner workings of software and gadgets, but you'll also develop useful skills necessary to communicate effectively with consumers and colleagues alike. Moreover, you could find yourself pursuing a career in the field of ecommerce and digital marketing, helping others navigate complex web platforms and offer personalized recommendations for specific purposes. After all, knowing how to sell software is essential if you ever plan to achieve financial independence.
Become CEO of your own lead generation software company, just follow our battle-tested guidelines and rake in the profits.