Reseller Programs are framework conditions offered by a company that allows partners, such as resellers or distributors to resell the company's products or services to customers on behalf of the company. The partner reseller program may include resources and support to help partners sell and support the company's products or services, such as marketing materials, training programs, technical support, and sales support.
How a Reseller Program Works
A reseller program runs on a simple commercial loop. The vendor grants resale rights through a partner agreement. The reseller buys at a discount off list price, or at a wholesale price, sets its own resale price, invoices the end customer, and keeps the difference as margin. Some programs pay a commission or a revenue share instead of a margin, but the principle is the same: the reseller owns the transaction and earns on the spread.
Around that loop sits the standard scaffolding, usually in this order:
- Partner agreement and enrollment.
- A price list with discount tiers.
- Deal registration to prevent channel conflict.
- Enablement and certification so partners can sell and support the product.
- Partner portal access for leads, assets, and deal tracking.
- In larger programs, market development funds.
The pricing model is the lever that decides whether partners actually sell. See reseller pricing and the static and dynamic pricing models for how to set discounts that leave room for partner margin. Vet candidates with the 4C method and define who the program is for before you recruit.
This tier carries real weight. Canalys, now part of Omdia, put partner-delivered IT technologies and services above US$3.4 trillion in 2023, more than 70% of the worldwide addressable IT market.
Reseller Program vs Referral, Affiliate, and Distributor Programs
The tail of search traffic here is people sorting one model from another. This is the quick version.
| Model | Who closes and invoices | How the partner earns |
|---|---|---|
| Reseller program | The reseller closes the deal and invoices the customer | Margin between buy price and resale price |
| Referral program | The vendor closes and invoices; the partner passes the lead | A referral fee on closed business |
| Affiliate program | The vendor closes; the partner drives traffic through tracked links | A payout per tracked conversion |
| Distributor program | The distributor supplies resellers, not end customers | Wholesale margin across the partner network |
Reseller programs usually carry higher rewards than affiliate or referral programs, because the partner takes on the full sales cycle. For the close cousins, compare a value-added reseller (VAR) against a plain reseller, and see referral, co-seller, reseller for where each fits.
Frequently Asked Questions
What is a reseller program?
A reseller program is a partner program in which a company authorizes partners to sell its products or services to end customers. The reseller handles the sale and invoices the customer, while the vendor supplies training, marketing materials, technical support, and sales support.
How to create a reseller program
Define who the program is for with an ideal partner profile, set the pricing model (discount, margin, or revenue share), write the partner agreement, add deal registration, and build enablement before you recruit. For the full sequence, see building a channel partner program from scratch.