In 2021, it's important that your business partners know what they're getting into with their new reseller agreement. Not only do you want them to understand the terms of service and pricing structure, but also the risks involved if they choose not to follow through on those promises.
A good way to communicate these points effectively is by establishing an effective reseller relationship management (RRM) system. A RRM enables you to track sales performance for each partner, provide ongoing support and feedback, and even automate many of the tasks required to keep your partnership running smoothly.
But before you get started on building out this powerful toolset, let’s talk about exactly what a reseller program entails. What does one look like? How are they different from other marketing techniques? And more importantly, why should you consider using one over another?
Before we dive into the specifics, it helps to first define what a "channel" actually means. In general, a channel refers to any type of third-party distribution platform or company that connects sellers directly to buyers.
While there are plenty of online marketplaces available today, most businesses will still use some form of offline channels as well. This includes traditional brick-and-mortar stores, wholesale distributors, retail shops, etc. These types of channels often offer much higher margins than digital platforms because they have the ability to leverage economies of scale when purchasing products at bulk discounts.
Another key benefit of having physical locations is that they allow customers to interact with your brand face-to-face. Many people prefer shopping in person rather than clicking around a website and making purchases. While this may seem obvious, it is worth noting that ecommerce companies continue to struggle with customer retention and conversion rates despite all of the bells and whistles offered up by modern web technology.
When thinking about who your ideal partners might be within a given industry, it helps to think beyond just large retailers. For example, if you own a small boutique clothing store, chances are high you won't be able to afford buying product directly from larger brands such as Amazon or Walmart. Instead, you'd probably opt to sell directly to smaller wholesalers instead where you could set a lower price point and earn better profits.
However, there are countless ways to connect with potential customers online. One popular option is affiliate marketing, which allows businesses to generate revenue simply by referring others to purchase certain items. The beauty of this approach is that you don't necessarily need to spend money upfront on advertising campaigns or expensive inventory. You can simply sign up for free accounts on websites like LinkShare and Commission Junction (CJ), then promote relevant products in exchange for a commission payment once someone buys something through your link.
It goes without saying that creating a solid affiliate strategy requires careful planning and consistent monitoring. However, while affiliates can help boost your bottom line, they aren't always the best choice for every single situation. Sometimes, it might make sense to take advantage of a more direct method of selling to consumers.
For example, say you run a jewelry shop specializing in custom designs. If you were looking to increase your exposure online, you wouldn't start off trying to find thousands of interested individuals to sign up as affiliates. Instead, you would likely focus your efforts on signing up local influencers who already enjoy considerable social media presence.
The reason behind this is simple. Influencer marketing works because it taps into the existing network of highly engaged users who are actively searching for unique content related to your niche. By partnering with these individuals, you gain access to both their audience and valuable contacts who can potentially become future clients.
This approach isn't limited to fashion designers either. As you begin exploring opportunities to grow your business further, remember that almost anything can serve as a source of inspiration. Whether it's food, travel, music, fitness, art, or sports -- there are literally hundreds of categories where you can explore ideas for partnerships.
If you decide to pursue a hybrid model where you work with both affiliates and influencers, you'll need to carefully monitor traffic coming in from various sources. It's especially helpful to build relationships with trusted bloggers so that everyone knows what to expect going forward.
Once you've established yourself as a reliable resource for quality information, you'll be able to attract regular readers eager to learn more about your latest offerings. From here, you can gradually transition away from the initial affiliate arrangement and move toward a true partnership model based on mutual respect and trust.
As mentioned earlier, there are several options when it comes to distributing goods across multiple channels. Some of the biggest names include eBay, Alibaba Group, Rakuten, and AliExpress. Each offers its own unique features and benefits. But regardless of which solution you ultimately settle upon, the same basic principles apply.
With this said, it's important to note that resellers typically rely on third parties to handle fulfillment services. That means that the majority of orders placed through your site will go straight to the manufacturer. This is known as direct shipping. Direct shipping doesn't come cheap though. Typically, you'll pay anywhere between 10% and 20% of gross revenue to handle shipments via these methods.
Because of this added cost, it's common practice for resellers to team up with a reputable logistics provider. Resellers such as Bluehost, Big Commerce, and Clickbank all operate under similar models. Essentially, these providers act as middlemen between manufacturers and resellers. They process payments and ship inventory automatically, leaving you time to focus on growing your business.
Reseller accounts are usually handled exclusively through third party software packages designed specifically for this purpose. Once you install the necessary plugins and configure everything correctly, you can easily manage dozens of active accounts simultaneously. When working with a reseller account package, you can quickly add additional vendors in minutes.
Similar to the previous section, reseller accounts are primarily used by third parties to facilitate transactions between sellers and manufacturers. Unlike other solutions, however, reseller accounts enable you to fully control the entire experience.
That being said, it's crucial to properly vet any reselling partner prior to starting down this path. Before agreeing to participate in a reseller program, make sure to thoroughly review the terms of service document provided by the supplier. Make sure that they clearly outline expectations regarding minimum order quantities, prices, and delivery timescales. Also, be sure to ask questions pertaining to refunds and cancellations policies.
Additionally, be aware that some reseller agreements require you to maintain a certain level of activity per month. For instance, if you fail to meet monthly targets, you may risk losing access to certain functions altogether. Finally, verify whether you need to register as a separate entity in order to receive commissions.
Finally, be prepared to commit significant resources towards promoting your listings. Even if you plan on doing minimal promotion, you'll still need to invest heavily in SEO strategies. Otherwise, it's unlikely that anyone will ever notice your listings unless you actively seek out reviews and links.
On top of that, there are certain limitations associated with reseller accounts. For starters, you cannot display ads or banners on your storefront page. Additionally, you cannot accept credit cards or PayPal payments. Lastly, you cannot send email messages to buyers after checkout.
All three of these restrictions can prove problematic depending on your specific needs. Nonetheless, reseller accounts remain among the most efficient forms of ecommerce monetization. To put things into perspective, you can expect to see roughly 50%-60% of total revenues generated through resell rights alone.
In addition to providing greater flexibility, a reseller account also provides enhanced visibility compared to other options. Because you retain full ownership over your listings, you can customize your storefront layout at will. Furthermore, you'll be able to upload images and videos freely without needing to worry about copyright infringement issues.
Most importantly, you can easily integrate your reseller account with numerous marketing initiatives including Facebook Ads, Google AdWords, and Instagram Ads. With these tools, you'll be able to reach millions of prospective customers worldwide.
At first glance, the concept of a reseller account sounds fairly straightforward. Basically, it involves allowing merchants to list their wares for sale on your website. However, that description barely scratches the surface.
To truly grasp the value of reseller accounts, you need to dig deeper into the technical details. For example, you'll need to ensure that your vendor supports multi-language capabilities along with international shipping rates. Ideally, you'll also want to avoid situations where you end up paying too much for shipping costs.
Ultimately, it's vital to evaluate the overall value proposition of a reseller agreement before diving in headfirst. After all, you shouldn't waste precious time on projects that aren't worthwhile. Fortunately, our guide above outlines some of the critical factors to consider when evaluating reseller programs.
The world of online marketing has grown so much over the past decade that it's nearly impossible for any one person to make an impact on their own. The best way to achieve success in this industry is through collaboration -- and that includes building partnerships with other people who share your vision.
A partnership between two or more parties allows each individual member to take advantage of resources they wouldn't have access to if not working together. This is true whether we're talking about affiliate partners, vendor relationships, or even direct sales representatives. But what exactly does "partnership" mean? How do you find someone willing to help you out? And how do you keep those partners happy once you've found them?
These questions should sound familiar because they were all answered by the creator of the most famous business model ever created. In fact, he was asked these same questions before he launched his company into the stratosphere. His answer? Sell products and services to others. That's right, Bill Gates didn't invent Windows 10 or Office 365, but rather sold both programs to Microsoft. He did the exact same thing when he built software for IBM back in the 80s. It wasn't until after selling hundreds of millions of copies of Microsoft DOS that he decided to build his next product himself.
So let's get started! We'll show you just how easy it is to sell digital products and services to customers across the globe using our new tool called Kiflo. Here's everything you need to know...
There are several reasons why having multiple sellers work together can benefit everyone involved. Let's start off with some general points that apply no matter which type of relationship you want to foster.
1) You gain additional exposure
When you add another seller to your team, you increase the possibility that you will end up reaching more potential buyers than would otherwise occur without partnering up. Having more options means better chances of finding someone interested in buying what you offer. Plus, there's always the chance that someone else could buy from you as well, leaving room for cross-promotion.
2) More money comes in
It's common knowledge that making money online isn't as simple as typing a few words into Google and hitting enter. There's plenty of competition out there, meaning that you'll need to put forth effort to stand out among the crowd. If you already have an established audience, however, then expanding your reach may become easier. By adding another seller to your team who can serve as a brand ambassador, you give yourself a leg up on attracting new followers.
3) A wider variety of products and services
If you don't currently have enough inventory to support every customer request, partnering up might be beneficial. Not only will it allow you to diversify your offerings, but it also eliminates the risk of losing a sale due to lack of availability. For example, if you run a website hosting service, having a third party offering domain registration services gives you more freedom to focus on managing your core business instead of worrying about how many domains your clients are registering.
4) Better prices
One reason why businesses go bankrupt is because they spend too much time focusing on things like profit margins instead of growing their client base. Partnering up with other sellers lets you leverage their existing audiences to generate extra revenue at no cost to yourself. Additionally, since different types of vendors specialize in specific areas, you won't need to hire expensive employees to manage logistics or handle fulfillment. Instead, you can use contractors who charge less while providing similar results.
5) Easier scaling
As mentioned above, if you aren't able to meet demand immediately, having a second vendor available makes it far easier to scale your operations when necessary. After all, if you weren't planning on opening a store tomorrow, why bother hiring staff members now? Simply open a pop-up shop and collect payments directly from customers. They'll never suspect anything amiss given that you've been doing it for years already.
6) Lower costs
Having a second employee doesn't come cheap, especially when you consider that it takes months (or longer!) to train them properly. However, outsourcing certain tasks reduces overall labor expenses for you. The good news is that most platforms provide detailed instructions on how to set up different aspects of the process, allowing you to delegate responsibilities quickly and easily.
7) Increased security
Even though you probably trust your employees with sensitive information such as credit card numbers, passwords, personal details, etc., it's still important to ensure that the data remains secure. When you partner up with other companies, it becomes possible to monitor activities related to payment processing and storage. This helps prevent fraud and ensures that customers' accounts remain safe.
8) Improved quality control
In addition to ensuring the safety of account holders, having multiple sellers under contract provides you with greater insight into the performance of various products and services. As a result, you can identify problems early on before they affect thousands of users. At the very least, you'll be able to spot trends before they turn into major issues.
9) Less stress
While dealing with multiple vendors can certainly cause headaches, working with a larger number of individuals often leads to fewer mistakes being made. Even if you personally oversee the entire operation, delegating duties to subcontractors creates a clear chain of command. Moreover, it offers opportunities to learn from the experience of others. Lastly, having a diverse group of experts around you increases the likelihood that you'll encounter challenges along the way. These situations are bound to happen sooner or later, so getting ready beforehand will save a lot of wasted energy.
10) Greater flexibility
Since you're not tied down to serving only one niche, you'll have more leeway to experiment with different strategies. You can try out new tactics and see how they perform before deciding whether or not you'd like to continue pursuing them further. Some ideas may prove popular, whereas others may die out almost instantly. Either way, you'll have learned valuable lessons along the way that will help you improve upon your current methods.
11) No middlemen
Many online marketplaces prohibit affiliates from promoting outside brands. While this rule applies to your own products, you shouldn't feel limited when it comes to referring your friends and family to websites where they can purchase items they actually want. With a reseller program in place, you can send visitors away from your site whenever they look for something besides yours.
12) Freedom to pursue other interests
Being part of a team gives you the ability to expand beyond simply running a single business. Since you'll likely have more free time thanks to lower operational costs, you might decide to pick up hobbies such as photography, writing novels, or starting your own YouTube channel. Whatever your passion happens to be, it's unlikely that you'll be unable to monetize it in some way, shape, or form.
Creating a reseller program involves first setting up your primary storefront and creating a listing for each item you plan to sell. Once that's done, you'll need to create an authorization page. This step essentially serves as a password protected portal that links to your main store. From here, you'll be able to customize fields related to pricing, shipping, and delivery times.
You'll also be required to fill out a brief questionnaire regarding your experience within the marketplace, including previous purchases, feedback ratings, and more. Your profile must include relevant contact info, such as phone numbers and email addresses. Finally, you'll need to select a unique URL that will act as your referral link. To protect against spammers, you'll need to verify your identity via social media sites or a valid government ID.
Once you complete the setup steps, you'll receive a code that you can paste onto your authorization page. This code acts as a proof of authenticity, letting shoppers know that they're purchasing from a legitimate provider. On top of that, there are a few other perks that come with signing up for an authorized reseller program. Namely, you'll enjoy exclusive deals, discounts, and promotional codes that can boost your bottom line.
To begin creating a channel partner program, sign up for Bluehost and follow the below steps to configure your account:
Open the Bluehost dashboard
Click the Add New Domain button located on the left side
Enter your desired name for the domain
Select the appropriate country/region
Choose a DNS server location
Next, click the Create Now button
Wait for verification to finish
Upon completion, head to the Domains section of the account overview tab
Scroll down to Channel Partnerships
Underneath the General Settings heading
Check the box labeled Enable Authorized Reseller Program
Finally, copy the provided URL and paste it on the authorization page
That's it! You're officially part of a reseller network.
For more tips and tricks, check out our guide to launching your own ecommerce platform.
The world of ecommerce changed drastically between 2019 and 2020. With new technologies like AI, ML, IoT, AR/VR, crypto currencies, blockchain, and more, people are now able to buy things online with ease. This has led to an increase in opportunities for sellers. It's easier than ever before to sell products on platforms such as Amazon, eBay, Etsy, AliExpress and others. However, it's not always easy to find someone who will purchase your product from one of these sites. The market is flooded with fake reviews, scams, and frauds. What if there was another way? A better way?
A reseller program is where merchants and brands collaborate together to generate revenue through their respective sites. In other words, when customers make purchases using each site’s marketplace platform, both parties receive payment. Resellers have been around since the early days of internet marketing. They were used by companies to bring in extra income so they could invest in additional advertising campaigns or pay bonuses to employees. Nowadays, resellers still exist but they're mostly utilized within niche industries that require specialized knowledge. Some examples include:
- Software developers (like Codeable)
- Virtual assistants (such as Upwork, Toptal, etc.)
- Online marketers (including affiliates, PPC specialists, SEO experts, webmasters, etc.)
In this article we discuss what a reseller program is, how to build one, and what steps should you take first. We also show you some tips about how to get your own website listed within the program.
For any company looking to enter into a partnership agreement, getting started isn't necessarily simple. There are many different ways to go about doing business. You may want to start off small and then grow over time. Or maybe you'd rather jump right into the deep end and see just how far you can swim. Either way, it takes patience and persistence to succeed.
To help you along the way, here are three key strategies to consider when starting up a reseller program:
1. Decide which merchant you want to join
There are hundreds of thousands of vendors out there selling all sorts of merchandise online. Each vendor operates differently depending on whether they offer physical goods or digital services. For example, some vendors only accept payments via PayPal while others require credit cards. And then there are those who use a variety of methods. If you don't know much about how to choose the best option for your needs, it might be worth hiring a professional consultant to guide you along the way.
2. Prepare yourself properly
When creating a reseller program, it helps to think ahead of potential issues and prepare accordingly. Here are some important questions to ask yourself before diving headfirst into building partnerships:
- Do you have enough funds to cover any expenses associated with operating the program?
3. Create a plan of action
Once you've decided on the type of merchant you want to promote, you'll need to decide exactly how you intend to approach them. One strategy involves sending emails to interested individuals. Another method involves offering deals to existing clients at discounted rates. Whichever route you prefer, remember to keep track of results and adjust accordingly.
An effective email campaign requires several components including:
- An attractive subject line
- A compelling message
- Clear call to actions
Another great tool to leverage when approaching businesses is social media. Using Facebook ads alone can yield excellent results. But combining paid posts with organic reach can maximize overall exposure even further. To ensure success, follow these guidelines to boost engagement:
- Be patient
- Focus on quality content
- Provide value
- Keep communication open
Now that you understand what a resell program entails and why it works, let's talk about how to actually put one into place. Depending on your skillset and experience level, there are two main options available to you.
Option 1 - Build a custom solution
However, if you don't possess advanced programming skills, you may want to pursue Option 2 instead.
Option 2 - Use an auto-builder
Using third party solutions such as Bluehost, Shopify, BigCommerce, Magento, WooCommerce, PrestaShop, Wix, WordPress, Joomla, Drupal, Sitecore, Squarespace, Envato Marketplaces and others, you can quickly set up a store front for your brand. These platforms allow you to manage everything from backend administration to sales reporting to shipping operations. Plus, most of them come equipped with built-in shopping carts and payment gateways. Best of all, you won't need to write a single line of code!
Once you install the platform, sign up for your account, and log into your dashboard, you'll notice a number of tabs located under "Manage." From there, select "Partner Program Management," followed by "Create Partner Program." Next, fill in the necessary information pertaining to the name of your merchant (i.e., "Big Commerce"), its URL, and contact details. Thereafter, scroll down to "Program Settings" and configure pricing tiers to suit your budget. Finally, save changes and move forward until you're satisfied with the final result.
As mentioned earlier, once you finish setting up the platform, you'll need to add your website to it. Fortunately, most of these providers feature plug-ins allowing users to effortlessly integrate their websites into the platform.
Most of the time, reselling programs involve a commission based model wherein the partner receives a certain percentage of every sale made through his or her website. That said, there are exceptions. For instance, some resellers charge upfront fees in exchange for access to special offers and discounts. Others may request a monthly fee regardless of how many orders are placed. Regardless of the specific terms, it's important to note that commissions generally range anywhere from 10% to 30%.
Finally, after completing all required tasks, you must submit your application to the designated administrator. Typically, the person responsible for handling applications is known as a "Reseller Manager." He or she will review your submission and respond accordingly. When approved, you'll receive full access to the partner portal where you can view current order status, communicate directly with partners, and manage your portfolio of items sold.
You'll often hear resellers referred to as having a "partner badge." While it sounds glamorous, there's no real meaning behind it aside from the fact that you're considered part of something bigger and greater. So, what makes a good partner? Well, for starters, you should strive to deliver high-quality service to your customers. Second, you should treat your partners well. Always stay friendly, courteous, and respectful toward everyone involved. Lastly, you should remain active in the community. Participate in relevant discussions regarding industry trends and news. Show interest in other members' accounts and try to learn about their experiences.
One last thing...
While reseller programs aren't quite as popular as they once were, they're certainly still alive and well. If you haven't tried partnering up yet, don't hesitate to give it a shot. Just remember to focus on providing top-notch customer service and maintaining a positive attitude throughout the process. Doing so will guarantee that you enjoy plenty of future successes.
Become CEO of your own lead generation software company, just follow our battle-tested guidelines and rake in the profits.