Many people ask me what is the difference between becoming an affiliate or a reseller. What is the simple answer? Let’s say there is a reseller and an affiliate, both selling 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 (kindly) asks customers to sign up for products or services. The reseller can sometimes provide technical support for their customers, and in some cases they handle billing directly with their customers and then the reseller company fills the order. Many companies offer label solutions and you can always include customer support to resemble your service. With digital products, your customers pay you an amount of $xxx.xx and then your reseller fills the order and collects your wholesale reseller fee of $xx.xx for you to make a difference on every order. Customers deal directly with the reseller, and resellers can set their prices at any level they choose.
What is 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 special affiliate code to let us know who referred them. XYZCO pays affiliates on a commission basis and the current rate is an ongoing percentage of the 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 they pay you forever for any of your referred customers, allowing you to build a real affiliate business with digital products they sell.
There are pros and cons to each type of account, and which one is right for you will depend on how much time you’d like to spend.
Key points to consider when becoming a reseller;
Getting started as a reseller is very easy and can be done in a few minutes. I would recommend taking some time and doing some research on the type of monetization terms that each reseller program offers. Many key points for both the reseller and the affiliate can be the same and it really comes down to your earning potential and success with the individual program.
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For how long does the software track cookies from client visitors? Most reseller software will have a tracking feature, so if you refer someone via a referral tracking link, they will keep a record if they then purchase for up to 30/60/90 days and sometimes longer. Many people take their time to start and execute an order, so this is definitely a very important factor.
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Many reseller programs will pay you for your first referral you order, but the terms can change afterwards. Ideally, you would like that customer to get paid every time they place an order.
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In a nutshell, read the terms a reseller provides you and see if they are fair and profitable. There are many types of reseller businesses you could start, so you first need to identify what type of reseller business model is right for you. Perhaps the overall key factor is to resell something you are interested in or passionate about? Choosing a reseller to make a profit isn’t always a bad idea either!
Key points to consider when joining an affiliate program;
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Minimum payment threshold, this can be the amount you must generate before a payment will be sent to you for your affiliate marketing efforts. The payout limit can vary from program to program and can range from $5 to $100 and in some cases if you fail to meet the terms (within 120 days as an example) you will lose your affiliate earnings. I would recommend learning the terms before joining any program, no matter how good the initial earnings model looks.
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Are the products you want to affiliate with profitable and easy to process? This could be a very good question to ask yourself. Be on the lookout for surprisingly high commissions, yes sometimes internet marketing is like pyramid schemes and if an affiliate program sounds too good to be true you probably need a closer look.
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Earn money type of products and MLM. I’m sure you know someone in one of these product categories, maybe even making money. don’t. Move in another direction, statistics and numbers don’t lie. These types of programs work on their greed and in many cases do not provide a product that justifies the potential. Do your homework..
What is better an affiliate program or a reseller program?
These are the questions you need to determine for yourself. With each comes its own set of pros and cons. With a reseller program you may have more of a freelance business that can grow over time, however an affiliate program is easy to start for free in many cases and can be a great part time business or a second income.
Here are some statistics to ponder as you consider your options;
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Affiliate marketing spending is approaching $5 billion in the US.
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Affiliate marketing generates a whopping 1% of the country’s total GDP in the UK.
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Approximately 15% of all digital media industry revenue comes from affiliate marketing.
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In 2016, more than 80% of brands use affiliate marketing.
Why do you have a 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 customer support to assist and help your customers on your behalf. This can be a fantastic situation and can allow you to run your own business and have the support of your affiliated reseller company. I find that digital products that are in high demand, that also offer support to their customers on their behalf, are some of the best most effective programs.