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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

ComponentSource from UK


Is someone here already working with ComponentSource (CS) and signed the agreement with them?

Every now and then I get a sale of a multi-user license from a reseller and this time CS contacted me that they want to become a global distributor (non-exclusive) for at least one of my tools.

They sent me a friendly and very open mail and made a good offer. However I would like to know if someone has some experiences in using their platform and what to consider?

Thanks a lot!
xmlbuddy Send private email
Monday, May 18, 2015
If you are a small guy (like "Start small, stay small" by Rob:) it's not worth it (what's small ~ I think lower than 5-10 K $/m and lower than 50 sales per month). Else try it.

Check also:
Atanas Krachev Send private email
Tuesday, May 19, 2015
I'm interested in any responses to this question too, as we're currently working on a commercial .NET component and might have a use for them.

I've used ComponentSource as a customer before, and they were very good at handling the corporate bs that often comes with purchasing through large companies. There also seemed to be close interaction between the developing company and the reseller, as they were the ones who suggested we use them for an EU purchase - a good sign in itself. (It was a £3k component)
Marlee Ammon Send private email
Tuesday, May 19, 2015
I used ComponentSource for about a year to sell my $1k software product.

I got around 1 - 2 sales a month with them but only once I had listed them on my website as a reseller.

I wasn't happy with the 40% they were taking, especially as it was my website that was generating the leads.

So I removed the reseller page six months ago and haven't had a single sale via them since.
TomTomAgain Send private email
Tuesday, May 19, 2015
But did your sales drop accordingly, or did you capture those 1-2 sales regardless? A 40% take sounds a lot on a $1k sale, but if you lose the sale without using them, it's a different story.
Marlee Ammon Send private email
Tuesday, May 19, 2015
This is one of the main questions. Do they really generate more sales then the average reseller? But how to tell without trying? ;) And even if they take 40% (which is a lot) would you get the sale without them?

In my case the customer approached CS and asked if they are also selling my tools. Afterwards CS came to me and made the offer. I would say this is a sign that CS would generate more sales.

In the past any reseller didn't really generate any sale for me (from what I know). They were all asked by the customer if they are also selling my tools. Honestly I never got the point why those companies are not buying directly from my pages.

So is CS any different here if they are able to take 40%?
xmlbuddy Send private email
Tuesday, May 19, 2015
> Honestly I never got the point why those companies are not buying directly from my pages.

Buying through resellers are mostly large companies, universities/hospitals, and govt agencies. Such an organization may be using s/w products literally from a thousand of vendors, accumulated over the years. It is cheaper for it to deal with a handful of resellers, even if that means paying a premium on top of the prices on vendors' pages. In other words, a reseller acts as an outsourced procurement department for the big enterprise/university/whatever.

Which it turn means you can and should quote your list price to a reseller that only "generates" one-off sales to the big guns.
Dmitry Leskov Send private email
Tuesday, May 19, 2015
+1 for Dmitry

It is important to understand the different types of resellers:

I would have thought that CS would be a 'value added' reseller.
Andy Brice Send private email
Wednesday, May 20, 2015

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