What’s The Difference Between A Reseller Program And Affiliate Program?

Many people ask me what is the difference between becoming an affiliate and a reseller? What is the simple answer? Let’s say there are resellers and an affiliate both selling the same digital service to XYZCO; however, there are significant differences between each individual’s contracts.

What is a reseller? The reseller creates a reseller account with XYZCO and (nicely) asks customers to register under it for products or services. A reseller may sometimes provide technical support to their customers and in some cases handle billing directly with their customers, where the reseller company fulfills the order. Many companies offer sticker solutions and always customer support to look like your service. For digital products, your customers pay $xxx.xx, then your retailer fills the order and charges you your wholesaler price $xx.xx, so you make up the difference on every order. Customers deal directly with retailers, and retailers can set their prices at the level they want.

What is Affiliate? Affiliate is definitely the evangelist of our service. He refers customers or traffic to XYZCO, where they open their own account with a special partner code to let us know who referred them. Affiliates are paid commissions by XYZCO, and the current rate is a constant percentage of said sales. Many affiliate programs pay a one-time fee; However, companies like SendPressReleases.com – Send Press Releases affiliate program offer a free program to sign up and get paid forever for any customer you refer, allowing you to build a real affiliate business selling digital products.

Each type of account has advantages and disadvantages, and which one is right for you depends on how much time you want to invest.

Key points to consider when becoming a reseller;

Getting started as a reseller is very easy and can be done in minutes. I recommend that you take some time and do a little research on what kind of trading terms each reseller program offers. Many of the key points for both reseller and affiliate can be the same and really depend on your potential income and success with the individual program.

  1. How long does the software track customer visitor cookies? Most reseller software has a tracking feature, so if you refer someone using a referral tracking link, it will keep track of purchases for up to 30/60/90 days and sometimes longer. Many people take time to initiate and complete an order, so this is a very important factor.

  2. Many reseller programs will pay you for your first order, but then the terms may change. Ideally, you want to get paid by that customer every time they order.

  3. Simply put, read the terms and conditions offered to you by the dealer and see if they are fair and profitable. There are many types of reseller businesses you can start, so you first need to figure out what type of reseller business model is right for you. Perhaps a common key factor is reselling something you’re interested in or interested in? Also, choosing a reseller for returns isn’t always a bad idea!

Key points to consider when joining the affiliate program;

  1. Minimum income limit, this can be the amount you need to generate before payment is released for you to market your affiliate business. The payout threshold can vary between programs and can range from $5 to $100, and in some cases, if you don’t meet the terms (for example, within 120 days), you’ll lose your affiliate income. I recommend learning the terms before joining any program, no matter how good the initial profit model looks.

  2. Are the products you want to join profitable and easy to deal with? This might be a very good question to ask yourself. Watch out for shockingly high commissions, yes, sometimes internet marketing is like a pyramid scheme and if an affiliate program sounds too good to be true, it probably needs a closer look.

  3. Make money with type products and MLM. I’m sure you know someone in one of these product lines, maybe they’re even making money. Do not do it. Go the other way, statistics and numbers don’t lie. These types of programs work on your greed and in many cases don’t offer products that justify the potential. Do your homework..

Which is better affiliate program or reseller program?

These are questions you have to determine for yourself. Each has its own pros and cons. With a reseller program, you may have more independent business that you can grow over time. However, in many cases an affiliate program is easy to start for free and can be a great part-time business or second income.

Here are some statistics to consider as you consider your options;

  • Almost $5 billion is spent on affiliate marketing in the United States

  • Cooperative marketing accounts for 1% of the country’s total GDP in Great Britain.

  • About 15% of all digital media turnover comes from affiliate marketing.

  • In 2016, more than 80% of brands use affiliate marketing.

Why is there an installation fee?

Many reseller and affiliate programs charge an onboarding or account fee to start, and yes, this is very common. Reseller programs that provide you with a great program, support and even white-collar customer support to help and assist your customers for you. This can be a fantastic situation and can allow you to run your own business and get it smeared with support from your affiliate reseller company. In my opinion, digital products that are in high demand and also provide your customers with support for you are the best most effective programs.

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