* The Business of Software

A former community discussing the business of software, from the smallest shareware operation to Microsoft. A part of Joel on Software.

We're closed, folks!


» Business of Software FAQ
» The Business of Software Conference (held every fall, usually in Boston)
» Forum guidelines (Please read before posting!)


Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

Nicholas Hebb
BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Any suggestion to the following reseller ideas?

I've recently had a couple of inquiries from potential resellers of my b2b desktop software.

My established pricing schedule goes like this:

1 license:  59.95
2-10:          53.95
11-25:      49.95
26-50:      45.95


I have given some thought to a reseller agreement that would go something like this:

1) Non-exclusive

2) Reseller would be required to make a minimum initial purchase at the 11-25 price point.

3) Reseller can sell at their price, not to exceed single license price.

4) I would provide support and administer registration of their sold licenses.

First, do you have any critique to offer on the above?

Secondly, any suggestions on how to handle the eventuality of a refund?

Here is what I was thinking along those lines:

1) Reseller is responsible to refunding to their customer.

2) Upon proof (to me) of refund (by reseller) I would "credit" their license pool with the number of refunded license.
Patrick Hughes Send private email
Wednesday, September 24, 2014
#2 is going to be hard to pull off.

What we do is simpler:
* Resellers get to buy at some discount %  (resellers that recommend our product get a much larger discount than just middle-men resellers)

* Resellers purchase a license from us on a per-sale basis.  They give their client's name during the purchase so we can make the license out in the client's name.  This eliminated the 'license pool'.  (We did license pools once -- to much work to keep track of)

* Refunds...  hmm.... we've never had a refund request through a reseller... Not sure what we'd do in that case.  I guess we would issue the refund, and then mark the license as deactivated and refunded in our license database (and since we use online activation, the license can never be used after that point).
Doug Send private email
Wednesday, September 24, 2014
Thank you Doug.

I had considered #2 as a gauge to commitment.

Your approach doesn't sound too bad though. I'm curious to know roughly what % discounts you give. Is it on a sliding scale?
Patrick Hughes Send private email
Wednesday, September 24, 2014
To me the suggested reseller margin is too low to attract anyone who is committed and likely to put much effort into the relationship. Of course, IMHO, YMMV, etc.
Scorpio Send private email
Thursday, September 25, 2014

Thanks, I'm rethinking as we go.
Patrick Hughes Send private email
Thursday, September 25, 2014
My standard answer to re-sellers is:

"Sell one license at full retail price and I will discuss re-seller discounts after that time".

Number of re-sellers who have gotten back to me after this?  Zero.  My advice is not to waste too much time on it until you see the color of their money.  Most of them are just tyre (tire) kickers.
Mark Nemtsas Send private email
Thursday, September 25, 2014
You make a good point Mark, however if they are inquiring as a result of the "Reseller inquiries are welcome" on my web site I at least owe to them some kind of legitimate response prepared and available.
Patrick Hughes Send private email
Friday, September 26, 2014

This topic is archived. No further replies will be accepted.

Other recent topics Other recent topics
Powered by FogBugz