How to resell software online — everything you want to know

Would you like to sell software online even though you’re not a developer? Are you a one-man business or a small enterprise and can’t afford a whole in-house IT team? Do you want to start a software reselling business but don’t know where to start? Don’t worry—we’ve got your back.

Software is an extremely flexible product that doesn’t necessarily require in-house manufacturing. There are numerous companies online selling white label software that can easily be branded and tailored to your needs. You need precisely zero coding skills to set it and sell it yourself. All you have to do is find a reliable company offering white label software and obtain it from them. When you do, you can resell it as you please and reap a significant profit with almost no effort.

Why resell software instead of selling your own?

Creating any product takes time and money. It is a delicate process that requires a great deal of expertise. You may feel reluctant to entrust an outsider with this task. The truth is that you and your team may not be up to it. If you’re a company not specializing in software development, there are so many things that can go wrong. Let’s say you’re a blogger who wants to sell branded shoes. Would you make them yourself?

Even if you decide to hire a development team, that will cost tons of money and take a lot of time. So why not use ready-made software and customize it?

What are the benefits of white label software?

White label software is created by expert developers but is not branded. You can buy it online for cheap and sell it as your own. This is a great way to add value to your company’s service without breaking a sweat.

Here are some of the benefits of white label software:

1. White labeling saves you time and money

2. It offers you a sea of choices

3. It provides your brand with a sophisticated product

4. It increases customer satisfaction

White labeling saves you time and money

Instead of hiring a whole in-house team to develop and refine the software, you get a ready-made product. Here are some of the expenses you won’t have:

1. Salaries for a team of developers

2. Benefits for additional employees

3. Staff training expenses

4. Overhead costs

Reselling white label software will also save you a lot of time you and your team would have to invest in making the product, beta testing, and troubleshooting. Instead of all that hassle, you get the software you can sell right away.

It offers you a sea of choices

If you decide to develop software in-house, once it’s done, you’re stuck with it. Trends in the IT industry are changing rapidly, and you would constantly need to improve your product to match them.

If you choose to resell white label products, you can pick and choose from a variety of the most up-to-date products. There are so many different options out there that you’ll be forced to choose from creme de la creme.

It provides your brand with a sophisticated product

You’ll get a product that has passed all the development stages and works like clockwork. Your provider will also constantly add improvements and useful features as it’s in their interest to maintain a competitive edge over their competition in the market. This means that your white label software will always be on par with new options out there.

It increases customer satisfaction

Your customers will be delighted to find out you’re offering state-of-the-art software. They may even drop another company for you as you’ll be their one-stop-shop. Since your customers won’t be aware of your shadow helpers, you’ll get all the credit for great work. Your brand will enjoy a greater reputation because clients will associate your name with the convenience and reliability of your white label product.

Software distributor vs. software reseller—what is the difference?

These two terms are often used interchangeably, but the truth is they are not synonymous. The main difference between a distributor and reseller lies in scale.

Software distributors

Distributors are well-established in the business and work on a much larger scale than resellers. They usually have a broad channel and sell the software both wholesale and retail. This means that distributors can sell the product both to resellers and directly to end-users. A distributor has a closer relationship with the manufacturer and can even be its subsidiary. Distributors also tend to offer services related to setting and establishing the software they’re selling, such as branding and marketing.

Software resellers

Resellers usually operate on a much smaller scale. They offer the product directly to their customers. Software resellers have a looser relationship with the supplier and may specialize in only a specific customer segment. Resellers don’t need to have any knowledge or expertise in the workings of a product. They can be non-IT companies that want to offer a better service to their clients by making use of ready-made white label software products.

How to become a software reseller

Becoming a reseller of software is not as easy as buying and selling shoes. There are certain steps to take and legal obligations to consider when starting a software reselling business.

Here’s what you might need to do:

1. Apply for an EIN

2. Obtain a reseller license

3. Find your provider

4. Know your audience

Apply for an EIN

If you don’t want to use your Social Security number, you need to reach out to the IRS and apply for an employer identification number (EIN). This is your business’ unique identifier.

Obtain a reseller license

In some states, you are required to obtain a license before you can start reselling software. Before you get your business up and running, you should do some research about your state’s applicable law.

Find a software provider

Do some research and find a company selling white label software of your liking. There are two ways to pay for the product. Some companies require up-front payment, and others take a percentage of each of your sales. Decide what works best for you.

You’ll then need to rebrand your newly acquired product and customize it to suit your customers’ needs. Your provider may even offer to do this for you. In fact, the provider may take care of all the technical details for you while you focus on marketing.

Know your audience

Even though you don’t need to have the technical know-how, your marketing campaign has to be flawless. Attracting the right audience is your part of the deal. You need to understand what your target audience wants and implement various strategies to attract them. Aside from branding the software, you should use SEO to drive traffic to your site or bundle the software with other value-add products and services.

Some white label software providers

Here are some of our favorite white label software providers:

Should you join a software reseller program?

Many companies offer software reseller programs to help their product reach wider audiences. They do this by recruiting resellers to help distribute their product in different markets. These are usually established companies operating in a similar industry that already have a solid customer base.

Aside from a wider market for their product, these companies get:

• Support—the company only provides support to their resellers, while they provide support to all the users

• Marketing—resellers use their own established marketing strategies to advertise the product

• Focus on the product—while resellers work on attracting prospects, the company can focus solely on improving the quality of their product

• Revenue—attracting more customers equals higher profits

By joining one of these programs, you become an authorized reseller of the company’s product, which can bring you a significant profit. You offer your customers a reliable software package and set up your own price. You also need to be familiar with the product as you’ll be responsible for offering your customers support for it.

Beware of the fact that these products are not white label. You cannot advertise them as your own as they are branded. However, you can enjoy many benefits from the program, such as:

• Getting free software licenses for internal use—you can cut down on your expenses by using their software for free

• Discounts—they may even offer you discounts on their other products

• Free employee training—since you’ll be providing support for their product, you’ll get free training, which you can then use for other projects as well

What is a software affiliate program?

Reseller programs are not to be confused with affiliate programs. They are sometimes mixed up, but the difference is huge. As we’ve said, resellers set their own prices and often offer additional services and support to their buyers.

Affiliates do not resell the product. They merely advertise it for the program starter and drive customers to their website. They do not offer support for the program, nor do they set their own prices. They are merely advertisers of sorts.

You may be wondering what affiliates get for their efforts. For every customer they drive to the program starter’s website, and for every consequent sale, they get a commission. Those who start these programs rely on their affiliate’s existing customer base. In turn, all the participants of the program get free money.

Software reseller opportunities with SaaS

SaaS products are getting increasingly popular with businesses of all shapes and sizes. Many companies base their operations entirely on SaaS products, and their implementation and adoption are continually on the rise. The 2019 SaaS trends annual report shows that companies spend more on SaaS than they do on laptops. In the previous year, an average company spent a whopping $343,000 on SaaS.

If you still haven’t decided on the niche for your reseller business, we advise you to go with SaaS. White label software providers, such as we at Sell SaaS, can help you set up your business easily and offer a range of services to your clients.

Who can benefit from reselling SaaS?

Many businesses can benefit from adding SaaS software to their package. These include:

• Marketers 

• Bloggers

• Consultancy companies

• Various agencies

Whether you want to start a whole new reseller business or you wish to offer more services to your clients, reselling software is bound to be a profitable venture. Just pick a reliable white label software provider and let them do wonders for your business.