It goes without saying that every business owner wants to grow recurring revenue. Becoming a software reseller can be a tool to swiftly scale profits month over month. What’s more, there are a variety of software reseller programs available. The best reseller programs will be able to round out each company’s unique offering and cater to the growing needs of their audience. By the same token, having so many options can get overwhelming.
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I’m here to provide some direction and give you a place to start your consideration process. Hopefully, this makes selecting the best software reseller program for you that much easier when considering the best reseller programs for you (and your clients).
The 5 best reseller programs for SaaS:
Let’s dive deeper into SaaS reseller programs and these 5 best reseller programs.
What are reseller programs?
Reseller programs are channel partnerships with a third-party vendor. A software reseller facilitates the sale of SaaS solutions from the provider (Google, for example) to your business clients (who might benefit from access to Google Workspace).
In partner reseller programs, when you sell tailored solutions and bundle products, you earn a percentage of the sale while also forgoing the labor associated with ongoing client support. This additional lift is managed exclusively by the third party.
In other words, your business reaps the benefits of a healthy ROI and generates recurring revenue without much effort.
Channel partnerships and software reseller programs
It’s important to make the distinction that, while reseller programs are a type of channel partnership, they are distinct from other partnerships and reseller services that fall under this category.
Other channel partnerships besides software reseller programs include:
- Traditional resellers. Not to be confirmed with reseller programs, traditional, straightforward resellers simply sell another provider’s solutions without any customization, modification, or bundling options.
- Affiliate partners. Directing clients and leads to a business or provider in exchange for a commission on each sale of a product or service.
- White-label reseller. Businesses using a white-label software partner program will sell third-party solutions under their own brand and pricing; therefore, clients believe the product is an in-house offering.
Why resell software?
At some point in your business journey, you might have asked yourself if software for resellers is the way to go. Reseller software might not seem worth the hassle, especially if you already sell your own SaaS solutions.
There is no denying that the SaaS industry is profitable and booming. Numbers don’t lie: SaaS has seen x5 the growth in just seven years, rising from a $31.5 billion industry to an estimated $171.9 billion (Gartner). So how can the addition of reseller software help your business benefit from these huge gains?
How software reseller programs make you more profitable
The best SaaS reseller programs can solve many profitability challenges that agencies face, build longer-lasting client relationships, and boost monthly recurring revenue. Each of the benefits listed below are interconnected and work together to make software reseller programs an undeniably rewarding prospect.
1. Expand your product offering
- Upselling existing clients
- Increasing lifetime value
- Reaching new segments
Without the ability to resell software, your business faces expensive hurdles to scale. Expanding your offering can take additional in-house training, freelance labor or hiring costs, implementation—and that’s just the beginning.
There’s an additional drain on existing company resources when you consider the need to provide quality onboarding to clients and offer long-term support options.
Software for resellers allows you to expand your horizons without inflating your costs and hurting your profitability.
Upselling clients with add-ons, upgrades, and customizations on reseller software increases their lifetime value (Deloitte), which in turn drives revenue for you.
In addition, the best reseller programs allow you to offer a wider range of solutions. In turn, this can allow you to reach new audiences and sell to different segments. Filling gaps in your product offering can unlock revenue potential for new kinds of clients. As for your existing base, they can be cross-sold on complementary reseller software.
2. Increase client retention and stickiness
- Reduce churn
- Reduce cost of acquisition
When clients churn and cut their lifecycle short, it can hit your business hard. Because of the SaaS business model, when a client cancels their subscription, it’s not a one-time hit. Rather, it creates a ripple effect as it impacts your annual recurring revenue (ARR).
If you fear the potential snowball effect, it’s time to resell software.
Because software reseller programs expand your product offering, they also give you the tools to significantly boost client retention. In turn, clients make their own customers more sticky.
Studies show that on average, after two years:
- Selling one product = retention rate of 30 percent after 2 years.
- Selling an additional product = retention rate increases by 20 percent.
- Selling four products = retention rate of 80 percent.
Retaining your clients not only allows you to grow your relationship with them and increase their value, but it also lowers your cost of acquisition. Startlingly, the cost of acquiring new customers has risen up to 222 percent (Business Wire) in the last eight years.
Ease this burden by ensuring you retain and grow each account.
An additional perk of software for resellers? They take care of providing smooth onboarding and ongoing engagement for clients, which can boost retention by 26 percent.
3. Streamline client tech stacks
- Increasing the volume (and value) of solutions sold via bundling
- Building trust and credibility with clients
- Becoming their single source of truth
Having an expanded product offering is all well and good. But to truly activate your recurring revenue potential, you have to bundle products together. The best reseller programs make it easy to customize packages tailored to the particular needs of each client.
And as we’ve seen, the more products they purchase, the higher their retention rate.
Running any business in 2022 is rife with complexity, and clients actively seek out ways to streamline, simplify, and reduce vendor clutter.
Offering your clients an ecosystem of solutions that fit with every need, all in one place, positions your business as the single source of truth and builds your credibility long term.
For example, Google or Microsoft reseller partner programs will likely increase client trust in your business overall due to their brand names, which is invaluable.
Vendasta’s Director of Vendor Management, Song Rattanavong, summarized the revenue benefits of software reseller programs perfectly.
The best reseller programs allow SaaS companies to reduce their cost of acquisition and increase the lifetime value of the customer by creating more stickiness. Reseller programs accomplish this by facilitating the packaging of multiple products and services.
5 Best reseller programs for SaaS
Okay, so you’re on board with reseller software. Now let’s dig into the details! We’ve compiled a curated list of the best reseller programs to consider to make your life easier.
1. Software for resellers: GoDaddy
It’s non-negotiable: every business needs a high-quality website. First on our list of best reseller programs is web hosting giant GoDaddy.
With GoDaddy’s software reseller program, you’re equipped to sell your clients domains, web hosting services, email, and website builders (GoDaddy). You can offer these essential services directly from your own piece of internet real estate (aka your own website).
As far as reseller programs go, GoDaddy offers more freedom when it comes to how profitable your commission will be when you resell software. With GoDaddy, you’re able to set your own prices and have control over the margins you make.
GoDaddy reseller software perks:
- Control of margins and pricing
- Payments handled through GoDaddy
- White-label storefront to fit your website aesthetic
- 24/7 support included with both pricing package tiers
GoDaddy pricing packages:
Basic Reseller: starting at $107.88USD per year
- Best for up to 25 customers
- Up to 20% off retail price
Pro Reseller: starting at $179.88USD per year
- Unlimited customers
- Up to 40% off retail price
2. Software for resellers: Google Workspace
Next on our list of best reseller programs is another essential that I’m sure you’re already familiar with: Google Workspace.
Besides adding credibility and client stickiness to any business, Google Workspace (formerly G Suite) includes best-in-class, cloud-based tools for collaboration, communication, and productivity. Products include Gmail, Drive, Meet, Calendar, Chat, Jamboard, and more. As far as software for resellers goes, Google’s productivity suite is a must, which makes becoming a Google Workspace reseller a smart choice.
Note that Google Workspace recently changed its pricing structure. When contemplating software reseller programs, be mindful of the ways in which you can help your clients optimize Google Workspace prices.
Google Workspace perks include:
- Cloud-based tools that facilitate collaboration in remote work environments
- Robust security and privacy infrastructure
- Each tier plan contains all 12 tools
Google Workspace packages (Google):
Every tier besides the Enterprise edition has a user cap of 300.
- Best for mom-and-pop shops, small businesses that do not require much Cloud storage, and freelancers
- The most popular edition
- Best for small to medium-sized businesses
- Ability to upgrade support is available
- Enhanced security
- Attendance tracking in meetings
- Best for larger businesses that are still under 300 employees
- Best for organizations with over 300 employees, that require powerful hybrid or remote working capabilities, and cannot compromise of top-tier security features
3. Software for resellers: Microsoft 365
Another heavy hitter on our list of best reseller programs is another familiar name: Microsoft 365.
Since 2013, Microsoft has shifted from one-off purchased products to a subscription-based model to secure its place in the SaaS space. Like Google Workspace, Microsoft offers work-facilitating apps and cloud services with Microsoft Office and Microsoft Teams suites.
As with any primarily cloud-based software for resellers, Microsoft also cites security as a top priority.
To become a Microsoft 365 software reseller, you must enroll via the Microsoft Partner Network website (Microsoft). Microsoft provides support and educational training during your journey to becoming a partner in their reseller program.
We should note that, to resell Microsoft 365 directly from Microsoft, you will have to complete a small-business sales and marketing assessment, as well as a technical exam (Chron). However, by reselling through a software marketplace, you can skip the exams and assessments, and go straight to reselling software to your clients.
Microsoft 365 reseller perks:
- Education and training to set you up for success for when you resell software
- Offerings catered to independent software vendors (ISVs)
- Solutions Partner designations to distinguish your business’s technical capability
4. Software for resellers: ActiveCampaign
We continue our list of best reseller programs with ActiveCampaign.
ActiveCampaign automates repetitive marketing tasks and workflows to boost efficiency. You can automate email follow-up, pull information on the most engaged contacts, and integrate with hundreds of apps.
ActiveCampaign saves time. And when it comes to your clients, time is money. The value add is clear, which is great for your recurring monthly revenue potential.
ActiveCampaign reseller perks:
- High revenue share for the software reseller
- Dedicated onboarding success
- Sales support
- Access to marketing development funds
- Product Certification potential
When it comes to reseller software, you can choose from two types of direct partnership (ActiveCampaign).
- 20–30 percent commissions in lifetime revenue
- 25–55-percent plan discount depending on volume
5. Software for resellers: Constant Contact
To round out our list of the best reseller programs to help increase your monthly revenue (quickly!) is Constant Contact.
Constant Contact is all about marketing tools to help attract customers, improve conversions, and boost sales. Their user-friendly digital marketing suite includes products and solutions for email, SMS, social media, and automation.
The profitable value add for your clients will be crystal clear. And as a software reseller, you’ll be in good company: businesses such as UPS and QuickBooks resell software from Constant Contact.
Constant Contact reseller benefits:
- Trusted by a variety of small business segments for over 20 years
- Partnership solutions are highly tailored and customizable
Constant Contact pricing:
To join a Partner Program directly, you must request more information by filling out a quick form on the website (Constant Contact).
How can you choose the right software reseller programs for your business?
At the end of the day, choosing the best reseller programs will come down to many factors unique to your business.
Namely, the first thing you should consider is your audience. Who is this reseller software meant for? Ask yourself the following questions:
- What do my current clients need?
- What additional value can I add?
- What can my current clients afford?
- Which new segments am I looking to reach?
Researching the best reseller programs listed here will also give you a baseline for understanding the advantage reselling that particular software can give you. In turn, you will be better able to position your business and your new product offerings to beat the competition.
Finally, there’s the question of pricing.
Do you want the freedom to set your own margins, as is the case with reseller programs like GoDaddy’s? Do you prefer the more tailored approach offered by Constant Contact, which does not list prices on their website but would rather find out more about your specific needs? Do you want to resell multiple software products quickly? If so, a software marketplace might be your best bet.
There is much to consider when you decide to resell software for a profit and as a complement to your existing offerings. I hope I’ve given you a place to start when it comes to using software reseller programs as a tool to boost your ARR and reap the benefits of reselling digital products.