Can I increase profits as a SaaS reseller?By Solange Messier
As a business owner who has been in the industry for a while and has a well-defined area in which you specialize, increasing your profits is probably one of your top priorities. Could becoming a SaaS reseller help?
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Scaling can be costly since it often involves expensive steps like hiring and onboarding new employees. If you increase your sales without a proper handle on the costs you incur in the process, you might discover that your profits at the end of the day are nowhere near where you’d like them to be.
Becoming a software-as-a-service (SaaS) reseller is an excellent way to solve this problem. SaaS reseller programs enable you to expand your product offerings and grow your client base, continue to deliver your existing services, and do it all without the need to license products yourself.
The marketing agency industry
According to The Marketing and Advertising Agency 2021 Report from Insider Intelligence, marketing agency executives consider the task of coming up with a more profitable new business strategy their top priority. This is followed closely by improving productivity and efficiency, and attracting and retaining the right talent.
In the post-pandemic world, many businesses have greatly increased their reliance on digital marketing and cloud computing. While this represents more opportunities for agencies in the space, there has also been a boom in agencies and other providers offering these services.
As a result, ensuring your agency has a profitable strategy in place is more important than ever. As the report results demonstrate, it’s also imperative to deliver these results in an efficient, productive manner.
Agency challenges solved with SaaS reseller programs
Boosting your profits as an agency is easier said than done. As the above report indicates, finding and retaining the right talent for the job is a challenge. Without experienced staff to deliver on behalf of your agency, your reputation can suffer.
It can also be difficult to expand your product offering. For example, delivering a new product like SEO to your existing clients may require extensive training for you and your staff on new software. Once your new offering is live, it can also take a great deal of staff time to onboard clients to the new service and to provide ongoing customer support.
However, staying focused on offering valuable service bundles to your clients is essential. The more you can be a one-stop shop for them, the less likely they will be to consolidate their spending and switch to different agencies that can take care of more of their needs.
As a SaaS reseller, you can avoid these challenges while still offering more value to your existing clients and landing new clients with an expanded service offering. By going with a white-label provider, you’ll be able to do all this without having to hire new staff or add to your existing team’s workload.
How you can increase your agency profits as a SaaS reseller
There are three main ways in which you can boost your profits by becoming a Saas reseller:
- Expanding your product offering with SaaS reseller programs
- Opening up your services to new types of clients, as many SaaS resellers do
- Upselling your existing clients so that each one becomes more profitable
Expanding your product offering
In an increasingly competitive marketing agency environment, you and your competitors are chasing the same prospective clients. If your product offerings are identical, there’s nothing to set you apart. You can end up in a situation where you’re just competing on price. Everyone loses in this scenario since profitability is eroded by the downward pressure on the price.
By expanding your product offering with SaaS reseller programs, you can make yourself indispensable to your target customer. For example, if you offer web design services, adding reputation management software and a productivity suite like Google Workspace is a natural fit that reflects your website clients’ needs. Rather than having them go to another agency for their reputation management and third for their productivity suite, they can stick with the agency that built and manages their website. From their perspective, it’s easy to understand why having one go-to agency for these digital products and services would make their lives easier.
In a SaaS reseller marketplace, you’ll find a wide range of specialized software products and services to choose from. You can select the SaaS reseller programs that makes the most sense for your business to sell. You know your customer and your market best, and you don’t necessarily have to deliver every possible service to them, just the ones that make sense for your niche.
Attracting different types of clients
As a SaaS reseller, you can expand your client base to new types of clients who you may not be able to serve with your existing product offering. Each new SaaS product you add opens up some new potential clients you can serve.
Sticking with our example, if you offer primarily web design services, you’ll be limited to new businesses and those looking to refresh their websites. However, by adding productivity apps, marketing automation software, and more to your offering, you can sell to a much wider range of potential customers who may already have websites they’re happy with.
Having more products in your portfolio also gives you the ability to create product bundles based on different client profiles. You can divide your prospects into categories like startups, small businesses, and medium-sized businesses. The needs faced by each of these will be different. By bundling products based on what they’re most likely to require and what their average budget is, you can make it easy for every type of client to see the value in choosing you over other agencies.
Upselling existing clients
Another benefit of product bundling is upselling your existing clients. Your current clients have already demonstrated that they trust you enough to spend money to work with you. Any extra sales you make with your existing clients aren’t cut into by client acquisition costs (CACs). Remember that profitability is one of the main challenges faced by agencies today. With high acquisition costs, getting more profit out of each client is a strategy that shouldn’t be neglected.
One way to upsell your existing clients is by resell software and creating bundles to incentivize them to use more products or services. You can build a buy more, pay less structure with several different tiers, with the greatest discount available if they bundle a larger number of products.
As a SaaS reseller, the workload on your end remains the same. You can offer more products to meet your clients’ needs, and spend about the same amount of time on selling. If they choose a higher-priced tier, you’ll enjoy a monthly, reliable boost to your profits.
Benefits of using a white-label multi-vendor SaaS reseller marketplace
One of the key challenges facing marketing agencies is creating a repeatable business model for consistent, reliable growth. You aim to boost your profits on an ongoing basis, not just this month.
Doing this the old-fashioned way, by purchasing software and hiring more staff to manage the delivery of your services to clients, can be extremely costly. It’s also risky since if you deliver a sub-par experience to your existing clients by rushing into providing a new software or service that you lack the expertise to deliver, your reputation can take a hit.
As a SaaS reseller, you can access new products to sell that are a perfect fit for your niche, as well as tools and resources to help you land new business and expand your client base.
This means you can focus your full attention on selling without the upfront risk of licensing software yourself or worrying about customer support for those software programs. You won’t get charged until you have a sale, and you have total control of your SaaS reseller markups.
In an increasingly competitive marketing agency landscape, SaaS reseller programs are a no-brainer. You can differentiate your agency from your competitors, deliver excellent services to your clients, access new markets, and boost your profits consistently and repeatedly.