A reseller partner is a company or individual that purchases a product or service, such as SaaS software, and then resells it to their own customers.
Unlike referral partners who pass leads on to the original provider, reseller partners take a more hands-on approach. They typically handle everything from sales to customer support, acting as an extension of the original software provider. Reseller partnerships are a core component of the channel strategy, helping SaaS companies reach new markets without direct sales.
These partners often have expertise in the industry or region where they operate, making them valuable allies in expanding a SaaS company’s footprint. Through a reseller partnership, the software provider benefits from extended market reach, while the reseller gains the ability to offer their customers a high-quality, pre-built solution.
Types of SaaS Reseller Partners
There are various types of SaaS resellers, each offering unique advantages depending on the nature of the market or customer base.
- Value-added resellers (VARs): These resellers bundle additional services, such as consulting or customization, with the SaaS product to enhance its value to the customer.
- White-label resellers: These partners rebrand the SaaS product as their own and sell it under their brand, giving them full control over the customer relationship and experience.
- Retail resellers: These resellers simply resell the product as-is without adding any customizations or extra services.
Understanding the type of reseller is important when building a reseller program since each requires different support and compensation structures.
Benefits of a SaaS Reseller Program
A well-designed reseller program offers several advantages for both the software provider and the reseller partner.
- Scalability: Resellers allow SaaS companies to expand their reach without the cost and effort of scaling an internal sales team.
- Market expertise: Reseller partners often have deep knowledge of their customer base or market, enabling better-targeted sales efforts.
- Increased revenue: By leveraging reseller partnerships, SaaS companies can tap into new revenue streams while resellers expand their product offerings.
