What is reseller management? 

Define reseller management

Reseller management is the concept of managing the relationship and organizing all the technology tools, business processes, and sales enablement assets and training with indirect sellers. The support and processes often include elements of provisioning, billing, onboarding, customer support, and managing licenses. In any go-to-market strategy, channel sales are vital for maximizing growth thanks to their impact on revenue.

What are resellers?

Resellers are partners of companies or individuals reselling the provider’s services, products, or bundles to their customers. Every company that sits between a provider and a customer is a reseller, with the relationship being controlled by a reseller subscription or partnership – which is an agreement on how they will do business.

By building networks of resellers, a company can solidify their control over many market segments that would otherwise be out of their reach. Specifically, reseller accounts can be used for the international distribution of cloud products that follow country-specific regulations.

Why Should You Build a Reseller Network?

Reseller networks are vital in reaching new audiences for a provider to sell their products and services. The reseller partner brings sales expertise and a proven track record. Reseller networks are a key part of any go-to-market strategy, for the following reasons:

  • Access quality sales teams  
  • Drive product related customer loyalty
  • Increase geographic reach 
  • Grow the network of clients 
  • Improve brand recognition 

What is a Reseller Partnership?

Reseller partnerships are a type of indirect channel sales. This means a partner, or a third party, sits between the provider and the customer, making sales for the provider. This is partnership is vital as it offers the provider of the services or products an external sales specific organization to grow revenue.  

There are two main types of resellers – traditional and value added. Value added resellers (VARs) sell a vendor’s product and then add on their own products or services, such as consulting, training, management, implementation – creating their own value (and extra revenue) in the form of a bundle. There are higher margins for value added resellers, but also more complexity in their operations.  

Traditional resellers are again a partner or third party that sells products or services for the provider, however, they modify and add less extras for the end customer. In general, margins for traditional resellers are lower, however, their operational model is less complex.

How are reseller partnerships incentivized?

The main way resellers are compensated / incentivized is with a portion of the sale of the product or service. Here are some further ways of incentivizing channel partners:  

  • Percentage of sales 
  • Improved account services  
  • Discounted products 
  • Premium page listings
  • Exclusive rights

Why is reseller management automation important?

Automation is important for providers and resellers due to the number of processes they both need to control, and for the scalability of the partnership.

These relationships often span multiple territories, currencies, languages, cloud services, and so on. Streamlined and automated management is essential in keeping efficiency at a high level.

What is reseller management software? 

Reseller management software will generally allow reseller staff members to create new users, define payment methods for future payments, select currencies for customer billing, and track financial activities.

The reseller management software calculates the reseller’s cost at all levels, based on the end-customer price and sales margins configured in the system. A reseller should be able to view all charges applied to a specific account within a specified period, as well as the costs incurred by both parties. 

The software might include a reseller marketplace, controlled by the vendor company, which is a digital product catalog to sell products, services or bundles directly to the end-customers or reseller partners. The services reseller management software have often include backup and disaster recovery, business applications, cloud enablement, communications and collaboration, digital marketing, infrastructure, and security. 

Having a properly configured reseller environment will allow for automation and streamlining of the onboarding process.

What are some features and functionalities of reseller management software?

Reseller management software should allow the provider to control the onboarding and the management of resellers, from any geography and in any language needed. The software should also provide a full overview of business performance, from invoices to subscriptions, taxation, and local pricing.  

The software should also allow for communication between the provider and the reseller, in terms of push notifications or newsletters, which can also be used to communicate with end customers. Order and promotion management is another vital functionality, allowing businesses to scale up operations and control margins, and revenue.  

It should also help with monitoring and automating any IT service sold, and if the service is charged on a usage-based billing contract, the software will help to increase revenue, and of course, reduce churn.

What are some common pros and cons of a Reseller Partnership?

The Vendor / Provider Pros

  • Faster revenue and company growth when compared with direct sales 
  • Reduce talent acquisition costs (hiring, training, retention) of sales and marketing teams
  • Reduce customer acquisition costs by using external resources
  • Easier entry into new markets and geographies
  • Diversification of revenue sources 

Reseller Pros

  • More control if company has exclusive sole distributor rights
  • Ability to rapidly scale sales and marketing efforts and results
  • Grow brand reputation by working with well-known partners
  • Revenue built off the back of company expertise (sales) 
  • Potential to grow the partnership with the provider, improving revenue and the brand

Vendor / Provider Cons

  • Bringing resellers up-to-speed in terms of education, training, onboarding, and communication can be time consuming and expensive
  • Loss of control over brand standards – customer experience will be managed by a third-party
  • The need to properly build out internal processes for sales and after care can be difficult and confusing if your organization currently works without these processes
  • Distance from customer means more distance from their feedback and challenges 

Reseller Cons

  • Distance from customer means more distance from their feedback and challenges
  • General lack of pricing flexibility
  • Hard to deal with product limitations as the reseller does not have the ability to change the provider’s product  
Read time
Share article
Get the latest expert advice and strategies in your inbox.

Subscribe to our newsletter

Monetize your SaaS subscription business with CloudBlue! Subscribe to our newsletter for expert insights, strategies, and tips to maximize your revenue potential.

By providing my Personal Data to CloudBlue and its affiliates, I agree to be contacted for marketing purposes and I acknowledge and agree to the collection and processing of my Personal Data in accordance with the Privacy Statement.

Tatiana serves as Head of Human Resources and HR Associate at Ingram Micro Inc., where she leads the HR function for CloudBlue globally.

Tatiana plays a pivotal role in shaping CloudBlue talent strategy. With a passion for fostering a positive work environment, Tatiana focuses on employee development, engagement, and well-being. She is committed to building a diverse, inclusive, and high-performing organization at CloudBlue. Based in Sofia, she collaborates closely with country HR teams across 16 countries where CloudBlue operates.

Prior to joining Ingram Micro in 2016, Tatiana held the position of HR Director at IBM’s regional office in Russia and CIS countries. Her HR career began with ING Bank and Unicredit Bank, and in 2008, she transitioned to the IT sector to lead HR functions at Kaspersky Lab. Tatiana holds a master’s degree in Biotechnology and Psychology, and she has also earned an MBA in Strategic Management.
Mike Jennett, Director of CloudBlue Platform Strategy, is an accomplished business and technology executive. With a deep focus on product development and go-to-market strategy, he plays a pivotal role driving strategic growth and market expansion.

Mike’s career is characterized by his adeptness in driving technological advancements and his commitment to leading digital transformations with experience including IDC where he was VP of the Mobility and Digital Transformation IEP practices, and HP where he held numerous leadership roles.

Mike’s expertise is also reflected in his published works and contributions to multiple tech publications. Mike holds a B.A. from California Polytechnic University.
Having previously to strategic product management, agile transformations, and user experience in CloudBlue, Taylor Giddens heads the Services & Solutions team where he ensures smooth delivery, operations and solution growth for our partners and customers.

The team includes technical account management, managed services, support, custom solution development, and customer enablement.

Prior to CloudBlue, his resume boasts leadership of some of the world’s largest companies during their digital transformations and marketplace launches. Taylor is a practitioner of servitude leadership when it comes to enabling his team to drive positive outcomes on the road to operational excellence.
Laurens van Alphen, a visionary entrepreneur with over 29 years of internet technology expertise, serves as Director of Technical Managed Services at CloudBlue, responsible for Operations and Delivery of CloudBlue SaaS.

As a Dutch racing champion and car enthusiast, he brings the same drive to the tech realm, steering Keenondots from a managed hosting firm to a global cloud enablement leader. Laurens is celebrated for his outcome-driven leadership, deep industry insight, and passion for balancing business innovation with client engagement.
Lincoln Lincoln is CloudBlue’s Head of Global Sales; having been with the company since November 2017. Leading CloudBlue’s global go-to-market organization, he’s responsible for driving accelerated and sustained mutual growth with CloudBlue’s customers and partners, as well as forming new customer partnerships across the Vendor and Provider ecosystem. As part of CloudBlue’s leadership team he is responsible the organisation’s revenue and continued market leadership by delivering and supporting products, services and solutions to organizations in established and new markets around the world.

Before joining CloudBlue, Lincoln was AppDirect’s Regional Director, Asia Pacific & Japan, responsible for forming, building and leading AppDirect’s business and operations across the APJ geography. He built and led AppDirect’s fastest growing and highest performing region globally within 3yrs.

Before joining AppDirect, Lincoln was EMC’s Practice Manager, Cloud Service Providers, APJ, working with the leading Service Providers to maximise their Cloud Business presence & market success. Lincoln joined EMC in 2007, and has over 20 years’ experience in the IT industry, having been based out of Singapore, Australia and the UK. Prior to EMC, he was in range of sales and channel positions at Symantec and VERITAS.

Lincoln has an Honours degree in Business Administration from Kingston University in the United Kingdom.
Brent Clooney is the Executive Director and Associate General Counsel for Ingram Micro Inc., and lead counsel for CloudBlue.

Brent is a Canadian based corporate lawyer with more than 20 years of experience as a strategic legal advisor both in private practice and as in-house counsel to large multi-national companies. Prior to joining Ingram Micro in 2008, he worked at a well-respected corporate law firm in Toronto, Canada and later served as general counsel for Toshiba Canada. During his 15-year tenure at Ingram Micro, he has held positions of increasing complexity and responsibility, and since being promoted to his current role in 2022, Brent is the legal lead for both Ingram Micro’s Canadian and global cloud businesses, as well as CloudBlue.

Brent holds a law degree (LL.B.) from Queen’s University, a Psychology degree (B.A. Honours) from Lakehead University, and has been admitted to the bar in Ontario, Canada since 2002.
Anurag serves as the Head of Product Management for CloudBlue and is responsible for product direction and driving innovation. His leadership has been marked by a keen focus on customer needs, growing the ISV ecosystem, and ensuring the continual evolution of CloudBlue’s product portfolio.

Anurag joined Ingram Micro in 2017 and has been instrumental in, positioning CloudBlue as an industry leading monetization platform for MSP’s, Telco’s and Distributors. Previously Anurag worked at Oracle and Microsoft where he managed many technology projects and programs.
As VP of Engineering of CloudBlue, Rony oversees the development and engineering efforts of the company. He is a recognized leader with more than 25 years of experience in Technology and Product.

Prior to joining CloudBlue Rony lead the R&D efforts at Tripwire acquired by Thoma Bravo, and Cedexis acquired by Citrix. Rony is a leader with extensive experience in transforming both complex technology problems into products that customers love and disjointed organizations into agile high performing teams.
Coen is a distinguished leader and entrepreneur in the realm of cloud technology. Currently serving as CEO of Keenondots and the Global Director of CloudBlue SaaS. He is passionate about driving innovation, fostering collaboration, and leading high-performing teams to achieve transformative results.

With a background as Managing Director of INTO Cloud and a pivotal role as Director of Products of KPN, he brings a wealth of experience in steering organizations through the complexities of the digital landscape.

Beyond the boardroom, Coen is a marathon enthusiast, demonstrating endurance and discipline in pursuit of both professional and personal goals.
Alyson has over twenty years of experience in demand generation, marketing automation and data management. She is responsible for leading the strategy and direction of the company’s brand, performance, and digital marketing.

Prior to CloudBlue, Alyson served as Ingram Micro’s Director of Global Business Intelligence Marketing Automation driving channel partner campaigns. Her tenure in marketing leadership at prestigious companies such as Western Digital, Ocean Institute celebrates redefining marketing campaigns and building top performing teams based on trust, experimentation, and results.

Alyson resides with her husband and three children in Orange County and is an active volunteer and donor within her children’s sports and education programs.

Darek Tasak is leading Customer Success & Value Creation for CloudBlue. In his role, he looks after CloudBlue customers globally during the entire lifecycle of our relationship: from the initial on-boarding, through in-life account management, always ensuring they build successful businesses leveraging our technology. Additionally, he is also in charge of Partnership & Alliances, as well as Pricing Management for everything we commercialize.

Before CloudBlue, Darek managed Ingram Micro’s Services division for hi-tech customers in Europe & APAC. His prior experiences include also launching and leading pan-European services business for TDSynnex, as well as strategy consulting with Boston Consulting Group (BCG).

As President of CloudBlue, Uddhav is a distinguished leader and visionary with nearly two decades of platform-building experience. He is an industry leader in digital commerce, the subscription economy, and monetization platforms.

Notably, at SAP, he spearheaded the transformation of their platform business into a multi-cloud platform-as-a-service, offering enterprise and developer-friendly subscription models. At Pure Storage, he championed the efforts to successfully disrupt the storage industry by creating revolutionary Storage-as-a-service, AIOps-as-a-service, and Disaster Recovery-as-a-service offerings with cutting-edge features and establishing a sophisticated subscription commerce infrastructure that is channel-friendly.

At CloudBlue, Uddhav guides and empowers businesses to rethink their monetization strategies by unlocking the power of digital ecosystems and marketplaces. CloudBlue provides enterprises with a mature multi-tier, multi-channel marketplace and monetization platform that enables usage-based subscription models and global delivery of Anything-as-a-Service solutions. Uddhav has played a pivotal role in shaping the future of the subscription economy through his innovative thinking and impactful contributions.

Let's talk