Many people ask me what’s the difference between becoming an affiliate or a reseller? What’s the simple answer? Let’s say there is a resellers and an affiliate, they both sell the same digital service for XYZCO; however, there are significant differences between each person’s agreement.
What is a Reseller? A reseller creates a reseller account with XYZCO, and then solicits (nicely) for customers to sign up under it for products or services. The reseller can sometimes provide the technical support for his or her customers and in some cases manages the billing directly with his/her clients then the order is fulfilled by the reseller company. Many companies offer while label solutions and ever customer support can be included to look like your service. With digital products, you get paid by your clients $xxx.xx amount then your reseller fulfils the order charging you your wholesale reseller rate $xx.xx so you make the difference on each order. Customers deal with the reseller directly, and resellers may set their prices at any level they choose.
What’s an Affiliate? An affiliate is strictly an evangelist for our service. He or she refers customers or traffic to XYZCO, where they open their own accounts with the affiliate’s special code to let us know who referred them. Affiliates are paid on commission by XYZCO and the current rate is an ongoing percentage of referred sales. Many affiliate programs pay a one-time commission; however, companies like SendPressReleases.com – Send Press Releases affiliate program offer a free program to sign up and you get paid forever on any of your referred clients allowing you to build a real affiliate business with digital products that sell.
There are pros and cons to each type of account, and which is right for you will depend upon how much time you would like to invest.
Key Points to Consider When Becoming a Reseller;
Getting started as a reseller is very easy and can be done within a few minutes. I would recommend taking some time and do a little research on the type of monetization terms each reseller program offers. Many key points for both reseller and affiliate can be the same and really come down to your potential profit and success with the individual program.
- How long does the software track client visitor cookies? Most reseller software will have a tracking cooking so if you refer someone using a referral tracking link, it will keep a record if they then purchase for up to 30/60/90 days and sometimes longer. Many people take time to get started and execute an order so this defiantly is a very important factor.
- Many reseller programs will pay you for your first referral that orders but then the terms might change. Ideally you would like to get paid on that client whenever they order.
- Simply said, read the terms a reseller provides you and see if they are fair and profitable. There are many types of reseller businesses that you could start so first you need to identify which type of reseller business model is right for you. Maybe the overall key factor is reselling something you have an interest or passion in? Choosing a reseller for the profit isn’t always a bad idea either!
Key Points to Consider When Joining an Affiliate Program;
- Minimum payment threshold, this can be the amount you must generate before a payment will be released to you for your affiliate marketing efforts. The payment threshold can vary from program-to-program and can be anywhere from $5 to $100 and in some cases if you do not meet the terms (within 120 days as an example) you would forfeit your affiliate earnings. I would recommend learning the terms before joining any program no matter how great the initial profit model looks.
- Are the products you want to become affiliated with profitable and easy to process? This might be a very good question to ask your-self. Keep an eye out for shockingly high commissions, yes, sometimes Internet marketing is like pyramid schemes and if an affiliate program sounds too good to be true, it probably needs a closer look.
- Make money type of products and MLM. I am sure you know someone in one of these product categories, maybe they are even making money. Don’t do it. Move in another direction, the statistics and numbers don’t lie. These type of programs work on your greed and in many cases do not provide a products that justifies the potential. Do your homework..
What’s Better an Affiliate Program or a Reseller Program?
This is the questions you need to determine yourself. With each comes their own set of pros and cons. With a reseller program you might have more of a standalone business that you can grow over time, however an affiliate program is easy to get started for free in many cases and can be a great part time business or second income.
Here is some statistic to reflect upon while you consider your options;
- Affiliate marketing spend nears $5 Billion in the U.S.
- Affiliate marketing drives a whopping 1% of the country’s total GDP in the UK.
- Approximately 15% of all digital media industry’s revenue comes from affiliate marketing.
- In 2016 over 80% of brands utilize affiliate marketing.
Why Does it Have Setup Fee?
Many reseller and affiliate programs will charge a setup or account fee to get started, and yes this is very common. Reseller programs that offer you a great program, support, even white-label client support to assist and help your clients for you on your behalf. This can be a fantastic situation and can allow you to operate your own business and have it sully supported by your affiliate reseller company. I find digital products that are in high demand, that also offer your clients support in your behalf are some of the best most effective programs.