Microsoft resellers have a unique opportunity to set a pricing margin while adding value to their client offerings. But how can you add even more value for your clients? Partner with an online marketplace of vendors, including Microsoft vendors that offer products and services in all areas a small business needs.
These marketplaces are continuously growing and expanding into new verticals. Because they’re always gaining new products and services to resell, you’ll be able to expand your offerings and satisfy more clients.
Learn all about bundling and get the guide: How to scale revenue by selling high-margin product and service bundles.
Microsoft 365 is a cloud-based suite of productivity tools that offers businesses a range of powerful applications, including email, document creation and management, and collaboration. As the demand for cloud-based solutions continues to grow, becoming a managed Microsoft 365 reseller can be an exciting opportunity for agency owners.
By offering managed Microsoft 365 subscriptions and services to small businesses, Microsoft resellers like you can earn a steady stream of recurring revenue. As you earn top dollar, you’re also helping clients streamline their workflow and increase productivity in their day-to-day.
In addition to Microsoft 365, you can resell Google Workspace, domain tools, marketing tools, website products and services, and hundreds of other options that can be found in an online cloud marketplace. This makes solution bundling a highly effective and lucrative path to take as a managed Microsoft 365 reseller. As exciting as this is, it can be equally overwhelming to have too many vendors to choose from.
In this blog, we'll explore the benefits of becoming a Microsoft software reseller in 2023, as well as some tips for getting started and building a successful reseller business.
Table of Contents
- How do I resell Microsoft?
- Why your clients should want Microsoft 365
- Eight Benefits of being a Microsoft 365 reseller
- Microsoft resellers: Subscription option
- Why become a Microsoft 365 reseller with Vendasta?
- Should I use Cloud Storage?
- What is the difference between Microsoft vendors and a managed Microsoft 365 reseller?
- Who is using cloud solutions?
- Is Microsoft 365 secure?
How do I resell Microsoft?
As a business in the 21st century it’s hard to keep up with all the ways you can improve efficiency and productivity. It’s difficult enough to stay up to date with the latest technologies with everything moving at lightning speed. The digital age certainly isn’t about to slow down any time soon.
One of the first steps you can take in guiding clients towards cloud technology is by moving their email hosting, office apps, and file management services into Microsoft 365.
Resell the microsoft 365 suite of business-level apps and services, created to help you grow your business. Get professional business email hosting and apps like Word, Excel, PowerPoint, and more updated monthly with the latest features and security updates.
Your clients may be working with outdated and hard to maintain on-premises email and file storage. It could also be hosted through dated webmail that doesn’t fulfill all the growing needs of businesses today.
By bringing multiple applications under one roof with nearly unlimited storage options, your clients will no longer need to worry about maintaining their old system, finding multiple vendors for different solutions, or getting left behind in the move to cloud services.
With more small businesses moving to the cloud, it’s key that resellers are able to provide the licenses to these businesses. This way local businesses can stay relevant in the growing cloud services landscape and Microsoft resellers like you can retain clients for the long haul.
Why your clients should want Microsoft 365
You know when you have been working on a project for hours on end? Drinking copious amounts of coffee just trying to get through it?
Maybe you are at the point where you need a trusted peer to review it for you before it goes live.
Having the option to share files, such as Word documents or Excel spreadsheets in real time allows you to get a fresh set of eyes on your project instantly. Getting feedback and actionable tasks in real-time is a huge time saver, and also improves the result of your work. Microsoft resellers have a golden solution that can sell itself.
Your clients no longer need to worry about sending large files over email to multiple different people, waiting on the feedback, and then going in to make the corrections later. Opening up this type of collaboration and efficiencies for finding files and documents can change the way a business operates and this is a big reason why moving to the cloud is a great option.
Collaboration is great, but so is having all of your files live in the cloud. In a world with so many different devices and screens, which we constantly switch between, having your work stored in the cloud makes life a lot easier. Your client can work on that Microsoft Excel file on their laptop at work and when they get home from their phone or tablet.
Having everything stored in the cloud also makes it a lot easier to share common work files with new hires or other employees that require group access. With the ability to set permissions on who can edit and view files, your clients can easily manage workflows.
Eight Benefits of being a Microsoft 365 reseller
Now, you may be asking yourself why you should be offering to resell Microsoft 365 licenses to your clients. Maybe you are a marketing agency that focuses on website creation and have never thought to add this type of product to your offering.
In the world of changing times and the ever-growing list of vendors, like Microsoft vendors, it is becoming more important for businesses to be able to get multiple solutions from a trusted consultant they already know.
In this section, we'll explore eight key benefits of being a Microsoft software reseller, from recurring revenue streams and higher profit margins to access to Microsoft resources and opportunities for upselling and cross-selling.
If you're not already considering becoming a managed Microsoft 365 reseller, read on to see how it can benefit your business.
1. Improved customer relationships
Small businesses are experiencing vendor clutter and they simply don’t have the time to find all the solutions they need from all the different corners of the internet. That’s where you come in. Provide clients with valuable support when you resell Microsoft 365 with your guidance and added services. This is a great opportunity for your agency or business to take advantage of our marketplace of products that live under one, single login.
2. Upselling and cross-selling with bundles
Increasing the number of products and services your clients purchase actually decreases the risk of churn. By offering valuable solutions, you become your clients trusted source for online products and services. Resell Microsoft 365 from Vendasta’s marketplace of growing business solutions, you’re empowered to grow your business and ARR (annual recurring revenue).
Pro tip: Combine Marketplace solutions like managed Microsoft 365 with your core offerings in order to increase sales.
3. Increased margins
One of the perks of being a reseller who offers an entire marketplace of products and services is choosing your profit margin. You’re in control of how you resell the products your clients need. Whether they come to you for a point solution or a bundle that gives them more bang for their dollar, you set the price. The price you charge can be adjusted based on the level of service you provide to each customer. It doesn’t have to be the same profit margin for every client.
4. Recurring revenue
By offering familiar, best-in-class solutions to your clients, you’re increasing their trust in your business as well as your revenue. Resell Microsoft 365 as a highly recognized and widely understood suite of products and services that virtually every small business needs to some extent. Offer big-name solutions along with your core products and services to increase the value your clients receive while you bring in a steady, recurring revenue stream.
5. Integration with other Microsoft products
Fairly self-explanatory. There are a number of Microsoft products that are independent of the basic 365 suite. If your clients are already using these independent solutions or wish to in the future, they will seamlessly integrate as clients upgrade their subscription or choose to add Microsoft point solutions to their package.
6. Scalable solutions
Because it’s a cloud-based solution, resell Microsoft 365 and your clients will receive software updates in real time. They can access the cloud from anywhere at any time so they can be flexible and mobile as they run their business. Plus these products and services continue to grow and adapt with your clients business needs.
7. Advanced security features
With a name like Microsoft, it’s easy to trust that they’ve done their due diligence in making sure their users' information is secure. According to their site, a managed Microsoft 365 reseller can expect features such as:
- Multi-factor authentication - standard two-step verification
- Data loss prevention - helps to identify sensitive information and prevent data leaks
- Advanced threat protection - reduces the threat of malware and viruses
- Information protection - helps protect information from unauthorized access
- Identity and access management - manages user access from different devices
The level of protection depends on the tier you sell to your customers.
8. Access to Microsoft resources
Microsoft resellers should have access to marketing materials, technical support directly from Microsoft vendors, and other training materials. This is all in addition to the information you would have from your provider as a reseller.
Microsoft resellers: Subscription option
There are a few different subscriptions to consider when you resell Microsoft 365. For the majority of businesses out there, your focus will be on finding the right fit between Microsoft 365 Business or Enterprise subscriptions.
When looking into the differences between Business or Enterprise the key factor to keep in mind will be your client’s needs and the size of their business. If you are working with a small-to-medium-sized business that has under 300 employees and doesn’t see themselves exceeding that number in the next year or more, one of the three business tiers is going to be a great option for them.
Here is a quick breakdown of the three subscription tiers that live under the Microsoft 365 Business level.
With Microsoft 365 Business Basic, you get web and mobile only versions of Microsoft’s Business Apps.
- Web and mobile versions of Microsoft 365 apps: Outlook, Word, Excel, PowerPoint, OneDrive, SharePoint, Exchange, and Teams
- Standard security
- Up to 300 attendees per call, chat, or meet
- Business-class email
- 1TB of cloud storage per user
With Business Essentials you get a professionally branded email through Microsoft Outlook with 50GB of email storage
- Desktop versions of Microsoft 365 apps (including premium features)
- Ability to manage customer appointments
- Easy webinar hosting
- Attendee reporting and registration tools
- Plus Access (PC only) and Publisher (PC only)
With Microsoft 365 Business Premium you get everything. This is the branded email and all the Microsoft 365 apps. The full meal deal. Three upgrades from Business Standard include:
- Advanced security
- Cyberthreat protection
- Access and data control
So now that we know what the different options are for business it’s probably important to consider what Enterprise offers. With Enterprise you are going to get access to more apps within the Microsoft ecosystem, as well as unlimited cloud storage. Some of the other big factors include:
Microsoft 365 for enterprise
- For Businesses with more than 300 users
- Hosted meetings with Microsoft Teams for up to 10,000 people
- An unlimited number of users under one account
- Advanced personal analytics with MyAnalytics
- Manage tasks and teamwork with Microsoft Planner
Enterprise subscriptions are essentially designed for businesses that are dealing with a large number of users. With Enterprise you can scale your Office Subscription to just about anything, allowing you more control and better security for your growing organization.
Why become a Microsoft 365 reseller with Vendasta?
The internet has many places that you could go to become a managed Microsoft 365 reseller.
So why choose Vendasta?
Well, on top of having an expansive platform that can help you run and grow your business, we also offer great margins to work with. We give our partners a 9% margin regardless of what subscription tier they have with us. When taking into consideration the growing list of other resellable solutions in our Marketplace, and the value of our platform, it's easy to make the choice. Here’s a look at our pricing compared to going direct at full retail:
|Subscription Tier||Office 365 Vendasta Partner Pricing USD||Office 365 Pricing - Retail USD|
|Business Basic||$5.98/per user/month subscription||$6/per user/month subscription|
|Business Standard||$12.45/per user/month subscription||$12.50/per user/month subscription|
|Business Premium||$21.91/per user/month subscription||$22/per user/month subscription|
Should I use Cloud Storage?
If you are struggling to find some added value to show a client when discussing the move to resell Microsoft 365 and the cloud, one of the most powerful aspects of this service is its 1TB of shared storage with OneDrive and collaboration tools.
Having shared storage that lives in the cloud gives you the ability to collaborate with anyone in your organization on any document. In my experience, shared cloud storage and collaboration greatly increases efficiency and communication between team members.
What is the difference between Microsoft vendors and a managed Microsoft 365 reseller?
A Microsoft vendor is typically a company that sells Microsoft products, like hardware or licenses direct to customers. Microsoft vendors can also provide support services such as installation or configuration assistance but they are primarily focused on selling products.
A managed Microsoft software reseller is a company that specializes in providing managed services related to Microsoft 365. This may include services such as user support, administration, security, and compliance management. Managed Microsoft resellers often work closely with their clients to understand their business needs and tailor their services accordingly. They may also provide consulting and advisory services to help clients optimize their use of Microsoft 365 and improve their business processes.
While Microsoft vendors focus primarily on selling products, managed Microsoft software resellers provide ongoing support and management services to help businesses get the most out of their investment in Microsoft 365. This can be especially valuable for businesses that lack the in-house expertise to effectively manage their Microsoft 365 environment on their own.
Who is using cloud solutions?
With the pace of change in our world today, it’s important to look at trends and forecasts to see the business landscape is growing and changing. It’s clear that the digital world is moving to the cloud, but the adoption of it is happening faster in certain markets and fields. The following statistics show the growing number of cloud solutions being adopted in many different areas.
- 44% of SMBs favor the public cloud (CloudZero).
- 66% of US government organizations are now using the cloud (FedScoop).
- Experts expect the cloud to grow at an annual growth rate of 16.3% in the retail sector from 2019 to 2026 (Fortune Business Insights).
- Gartner predicts that the worldwide end-user spend on public cloud services will grow 20.7% from 2022 to 2023 (Gartner).
The value of moving to the cloud is abundant. It’s fast, secure, and has a 99.99% guaranteed uptime. It offers world-class features and options with the potential for unlimited storage. Moving to the cloud will keep your business running in its most efficient form, keeping it up to date with the fast pace of technology.
Is Microsoft 365 secure?
A common concern for moving to the cloud is security. A lot of businesses have a fear of being hacked and losing all of their valuable data. They are unsure if a service like Microsoft 365 is a safe option. In short, the answer is yes, it is.
By switching to resell Microsoft 365 you are getting world-class security that is constantly being updated and monitored monthly. Microsoft is trusted by the majority of today’s largest companies. Governments all over the globe are heavily invested in the Microsoft cloud ecosystem and rely on its security and uptime to keep things running.
Microsoft does not own your data, they simply store it on their servers. Microsoft has zero access to this data. Instead, they control access through auditing, approval processes, and roles-based access that the user sets up. If you move your data from the cloud they completely purge that data from their server after 90 days.
Microsoft 365 boasts a Guaranteed 99.9% uptime.
“Get peace of mind knowing that your services are available with a guaranteed 99.9% uptime, financially backed service level agreement” (Microsoft).
That's right, they refund you a portion of your subscription if they are unable to keep things up and running at this rate.
In a study of SMBs who are using Office, “94% of SMBs appreciate the upgrade in security that comes from adopting the cloud.” (Microsoft).
Moving to the cloud is not only a smart and efficient decision, it’s also a safe one.
Resell Microsoft 365 now
It’s an exciting time for Microsoft resellers. By offering a world-class solution like managed Microsoft 365 in the Vendasta Marketplace, we are empowering cloud brokers of all backgrounds and fields to expand their offerings and find new ways of helping local small businesses simplify and improve their business.
Take advantage of the ability to sell core business solutions and see your client retention soar. There’s a good chance that you have clients and potential clients that require a branded email or a better way of managing their files and folders. Microsoft 365 is the answer to these problems, and you hold the key to unlocking the solution. Become a Microsoft reseller today.