* The Business of Software

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Moderators:

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

Working with Resellers?

Hi,

Lately we have been contacted by several resellers who want to purchase licenses of our software for their clients. We are in the b2b sector.

I am keen to open up these channels but have no experience with working with resellers like this.

* Do you offer a reseller discount for a single license? I expect reseller discounts should only apply for multiple licenses.

* What type of discounts do you offer based on the number of licenses required?

* How do you manage the reseller channels? We use Avangate for our payments so will probably use Avangate's Channel Manager for this as it appears convenient.

* Any other advice for working with resellers?

Thanks, any feedback much appreciated.
maxr Send private email
Friday, December 11, 2015
 
 
Andy Brice Send private email
Friday, December 11, 2015
 
 
This is what we do:

1. Determine if the reseller actually recommends your product.  If they're a tiny company they probably do.  If they're a large company, they probably don't. 

2. Large companies get small (10% or less) discounts.  Small companies get 20% off the first order, 25% off the second and 30% off future orders

We have a home-grown system that lets them enter their reseller ID on our order page and then it forwards them to the final purchase page with the changed pricing.  Large companies often order with a PO though.
Doug Send private email
Tuesday, December 15, 2015
 
 
Andy gave me the best advice ever. They are not really resellers, they are just buying on behalf of the client. The client will buy anyway.

I refuse to give discounts to these resellers and they still buy it.

Don't get fooled, just say no discount.
Brian O'Neill Send private email
Thursday, December 17, 2015
 
 
My experience is the same as Brian's. Unless the reseller can sell hundreds of copies of your software per month they will not put any effort into pushing it.  Some big companies have a policy of purchasing from approved vendors only, and it is easier just to tell their tame reseller "buy XXX from YYY for us" than it is to get you on the approved list.

I have not asked the resellers what mark-up they add to my software, or if they are on a retainer.  They pay me my standard price and I don't concern myself with the price they charge. The downside of this is that it is sometimes difficult to get the name and email address of the end user for follow-up purposes, but some resellers will give this info.

One reseller did approach me with an offer that sounded too good to be true, and indeed it was.  They have never sold a single copy, nor even asked for a quotation.
fisher Send private email
Thursday, December 17, 2015
 
 

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