White label software is created by expert developers but is not branded. You can buy it online for cheap and sell it as your own. It provides your brand with a sophisticated product. Instead of hiring a whole in-house team to develop and refine the software, you get a ready-made product. Reselling white label software will also save you a lot of time you and your team would have to invest in making the product, beta testing, and troubleshooting.
Instead of all that hassle, you get the software you can sell right away. Trends in the IT industry are changing rapidly, and you would constantly need to improve your product to match them.
If you choose to resell white label products, you can pick and choose from a variety of the most up-to-date products. This means that your white label software will always be on par with new options out there. Your brand will enjoy a greater reputation because clients will associate your name with the convenience and reliability of your white label product.
These two terms are often used interchangeably, but the truth is they are not synonymous. The main difference between a distributor and reseller lies in scale. Distributors are well-established in the business and work on a much larger scale than resellers. They usually have a broad channel and sell the software both wholesale and retail.
This means that distributors can sell the product both to resellers and directly to end-users. A distributor has a closer relationship with the manufacturer and can even be its subsidiary. Resellers usually operate on a much smaller scale. They offer the product directly to their customers.
Software resellers have a looser relationship with the supplier and may specialize in only a specific customer segment. They can be non-IT companies that want to offer a better service to their clients by making use of ready-made white label software products. Becoming a reseller of software is not as easy as buying and selling shoes.
There are certain steps to take and legal obligations to consider when starting a software reselling business. In some states, you are required to obtain a license before you can start reselling software. Do some research and find a company selling white label software of your liking. There are two ways to pay for the product. Some companies require up-front payment, and others take a percentage of each of your sales.
Decide what works best for you. Your provider may even offer to do this for you. In fact, the provider may take care of all the technical details for you while you focus on marketing.
Attracting the right audience is your part of the deal. You need to understand what your target audience wants and implement various strategies to attract them. Aside from branding the software, you should use SEO to drive traffic to your site or bundle the software with other value-add products and services.
Weblium White Label Agency. Many companies offer software reseller programs to help their product reach wider audiences. They do this by recruiting resellers to help distribute their product in different markets. These are usually established companies operating in a similar industry that already have a solid customer base. Support —the company only provides support to their resellers, while they provide support to all the users.
Marketing —resellers use their own established marketing strategies to advertise the product. Focus on the product —while resellers work on attracting prospects, the company can focus solely on improving the quality of their product.
Revenue —attracting more customers equals higher profits. You offer your customers a reliable software package and set up your own price. Beware of the fact that these products are not white label. You cannot advertise them as your own as they are branded. However, you can enjoy many benefits from the program, such as:.
Or does the vendor grant the reseller the licence, who then grants the customer the licence? Does the vendor sign a pen and ink licence agreement with customers? Or does the vendor provide the reseller a SaaS, who then provides it to the customer?
Does the vendor pay the reseller a commission being a percentage of the money the customer pays to the vendor? Does the vendor provide services like implementation, support and maintenance to the customer? Or does the vendor provide services like 2nd and 3rd level support to the reseller, who then provides them to the customer?
Does the reseller undertake any responsibilities for example, provide services for the vendor after the sale is made? Does the vendor have any dealings with customers including post-sales support? Facebook Twitter LinkedIn Email. Related Posts. Startup funding: understanding SAFEs. General conditions of contract Latest and guidance. January 9th, 2 Comments. Can you get a rent holiday and avoid paying rent during the coronavirus pandemic?
Who owns the data? This allows the distributor as well as those down the distribution chain to make profits. Distributors can also be categorized into super or mega distributors as well as other lower categories.
Super or mega distributors will cover a much wider territory. In other words, there will be more retailers and the turf will be more competitive than distributors. The same applies to retailers when compared to resellers, wholesalers, or distributors. These are sometimes referred to as retail distributors due to several reasons. Acting as a middleman between distributors and consumers, a dealer can also be said to be a reseller.
Dealers get to operate on a much smaller scale and localize their coverage. This is an important part of the distribution chain that enables products to reach the end consumer. A likely question may arise after the above explanation and that has to do with knowing what role is most important. Looking at these roles, none can be said to be more important than the other.
Each is critical to smooth and seamless commercial activities. For manufacturing to be successful, products must move hitch-free from the factory to end-users.
And how does this happen? These are roles and relationships within the commerce industry. Such roles have been existent for as long as the commercial production of goods began. The information here should be sufficient enough to enable you to get a better understanding of these concepts.
Your email address will not be published. How does a reseller compare with a distributor, wholesaler, or dealer?
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