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Software Resellers
Software resellers can quickly become an extended
sales force for a small software company. Building
a reseller sales force requires effort, attention,
and regular communication, but the benefits can
be significant.
The Benefits To Resellers:
1. Require Less Technical Support
Resellers tend to become very familiar with the
product lines that they represent. Because of
their more-extensive product knowledge and expertise,
they tend to require far less technical support
than a customer who is new to the product line.
Resellers will often provide first-level support
for the products they represent, which will help
reduce the support burden for small software companies.
2. Generate Multiple Sales
When you make contact with a customer, there is
the potential for a single sale. With resellers,
a single reseller contact can result in multiple
sales from that single contact. Resellers want
to represent and recommend products they are familiar
with and have confidence in. If they have experience
with a specific product, they will often recommend
it to a number of their customers, so your single
reseller contact can often result in a large number
of sales.
3. Penetrate Niche Markets
Resellers often have a strong understanding of
specific market segments. They might understand
nuances or intricacies of a specific industry.
Customers often trust the judgement of these resellers
because of their specialized understanding. And
as a result of that trust, resellers are often
able to assist in penetrating niche markets or
industries where you do not currently have a customer
base.
Tips For Working With Resellers
In order to make the most of your resellers, consider
these simple tips...
Discounts
Resellers expect a discount. Keep in mind that
this can work in your favor. A discount incentive
will motivate resellers to sell your software
instead of software from a competitor. Price points
should be structured in such a way that you can
share the wealth with resellers and still generate
a healthy revenue stream. Often, manufacturers
will scale discounts based on sales volume. It
is suggested that the reseller establish a reasonable
sales volume prior to moving to a higher discount
level. In other words, just because a reseller
says they will sell X volume does not mean they
actually will; offer them discounts based on the
quantity they are actually purchasing, and not
based on what their sales projections are.
Training
Consider offering reseller training, either from
web videos or via a structured class. Resellers
that understand your product line will have an
easier time selling the software. Training is
a time investment on their part, and shows they
are serious about representing your product.
Education
The best resellers are educated about your products,
so be sure to provide comprehensive educational
materials. Educated resellers will have a better
understanding of a products capabilities, and
be better able to represent it and sell it in
appropriate situations.
Promotional Materials
Be sure that resellers have access to promotional
materials and technical information, which are
often valuable, and sometimes necessary, in closing
sales more quickly and easily.
Communication
Communication is critical to building an active
and successful reseller channel. Remember that
communication is a two-way street -- resellers
can often provide product insight and innovative
uses for your software. Keep the channels of communication
open with resellers who are active. Invite resellers
to participate in beta testing.
Referrals
If you receive requests from customers that require
installation assistance, refer them to resellers
who are active and knowledgeable about your product
line. Referrals can be based on sales volume or
geographic location. Referrals can be an added
incentive for resellers to actively represent
your software.
Invite Integration
Work with other software developers and system
architects to make your software work in conjunction
with other applications. Integrated applications
can result in long term relationships and strategic
sales channels.
Building a strong reseller database can be a
time consuming and labor intensive process, and
not all resellers will end up being productive.
But those that are will often bring in significant
sales numbers.
Related Articles:
What Resellers
Want
What are Resellers?
What are OEMs?
What are Software
Publishers?
What are Affiliates?
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Developer
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Tips for Working with Resellers