The software market is booming. Businesses worldwide are transitioning to digital platforms, and software solutions are becoming more important than ever. In fact, the global software market is expected to reach over $896.20 billion by 2029. For companies looking to enter this expanding industry, becoming a software reseller is a lucrative opportunity. As a software reseller, your primary role is to buy software solutions from developers and resell them to other businesses or consumers. But how do you maximize your sales in this competitive industry?
This blog will help you understand the software reseller model, guide you on choosing the right reseller program, and provide you with the top 10 tips to boost your sales and grow your business. Whether you’re just starting or looking to expand, these ten tips will set you right on the path to success.
Basics of the Software Reseller Model
Before diving into tips to boost sales, it’s important to understand how the software reseller model works. At its core, a software reseller acts as a middleman between software developers and end users. Resellers purchase software licenses from developers at discounted rates and then sell these licenses to customers at a higher price, earning a profit from the difference. In return, software developers can focus on building their products while resellers handle the sales and distribution.
This business model is highly flexible, offering various types of reseller programs that cater to different business needs. Let’s break down a few of the most common types of software reseller programs and key terms that are useful to know.
Types of Software Reseller Models
Here are some of the types of software reseller models:
White Label Software Reseller
One of the most popular models for software resellers is the white label software reseller model. Here, you purchase software developed by someone else but rebrand it as your own. This means that while the core product remains the same, it is sold under your company’s brand, giving you full control over the branding and customer experience. The benefit of this model is that it allows you to build a brand presence without the heavy upfront cost or technical expertise required to develop your software.
For example, many businesses resell white label VPN software or white label cybersecurity solutions, putting their own brand name on a product developed by another company. It’s ideal for resellers who want to focus on sales and customer relationships rather than software development.
Software Value-Added Reseller (VAR)
A software value-added reseller software is someone who doesn’t just resell the software but also enhances it by adding extra services or custom features. This could include technical support, training sessions, software customizations, or integration services to make the software more useful for the customer. By providing these additional services, VARs create a more complete package, making the software more valuable to the end user.
For instance, a VAR might offer installation services or provide customer training on how to use the software effectively. Adding value in this way can justify a higher selling price, and customers are often willing to pay more for a package that includes support and customization. This model is usually seen with ERP (Enterprise Resource Planning) software or CRM (Customer Relationship Management) software, where clients need guidance on how to implement these systems into their operations.
Software as a Service (SaaS) Reseller
The Software as a Service reseller agreement and model is rapidly growing due to the increasing popularity of subscription-based software services. Rather than selling a one-time software license, SaaS resellers sell ongoing subscriptions to cloud-based software. SaaS models are attractive because they generate consistent, recurring revenue through monthly or yearly subscription fees.
SaaS resellers typically partner with developers of cloud-based software, such as productivity tools, project management software, or cybersecurity platforms. SaaS resellers help facilitate subscriptions by managing customer relationships, offering support, and handling the billing process. SaaS solutions are in high demand as more companies shift their operations to the cloud, which makes this model an extremely lucrative choice for resellers.
Key Terms to Know in the Software Reseller Model
Custom Software Reseller Program
This type of program is designed for resellers who want to offer highly tailored software solutions to their clients. These programs often allow resellers to customize certain aspects of the software to fit their target market’s needs, providing a more personalized offering.
White Label Software Reselling
As mentioned earlier, this model allows resellers to rebrand software and sell it as their own. It’s a good option for businesses that want to enter the software market without investing in product development.
Software Reseller Agreement
The parameters of the resale are outlined in this formal agreement between the software creator and the reseller. It includes details like pricing, commission structure, and reseller responsibilities. This agreement is crucial for setting the expectations and legal boundaries of the reseller partnership.
Software Reseller Contract
Similar to the agreement, the contract formalizes the relationship between the reseller and developer. It may also include clauses about territory rights, exclusivity, and the support provided by the developer. Both the software reseller agreement and contract are vital for a successful partnership, as they protect both parties and ensure that each side understands their roles.
Software Developer Reseller Program
Some software developers offer structured reseller programs that provide additional perks to their partners, such as marketing support, discounted pricing, or exclusive access to certain features. These programs are designed to help resellers succeed by offering them the resources they need to sell the software effectively.
What Software Reseller Program to Opt for?
Now that you have an understanding of what a software reseller is, the next big question is: What software reseller program should you choose?
One great option is the PureVPN Reseller Program. As a VPN service provider, PureVPN offers a reseller software program that allows you to resell their top-rated VPN software under your brand. Their program is designed to help businesses of all sizes—whether you’re just starting or looking to expand an existing portfolio of services. PureVPN is known for its high-quality service, competitive pricing, and easy-to-use software for resellers platform that makes managing your business simple.
Benefits of the PureVPN Reseller Program include:
- Full branding options are available so that you can sell it under your company name.
- Competitive reseller pricing that allows you to earn high margins.
- 24/7 customer support to help you and your customers.
- There are no complex contracts—just a straightforward software reseller agreement.
Choosing a trusted partner like PureVPN is essential for your success, as it gives you access to a product that already has a solid reputation and a broad customer base. With that in mind, let’s dive into the below successful tips that will help you attract customers and boost your sales as a software reseller.
Top 10 Software Reseller Tips to Attract Customers and Boost Sales
Here are ten actionable tips to help you attract more customers and significantly boost your sales as a software reseller.
1. Choose the Right Software
The first step in the process is to select the right software to sell. The software you choose should not only have a strong demand in the market, but it should also align with your business goals and target audience. It’s important to conduct thorough market research to understand which types of software are trending and have a growing customer base.
For instance, the VPN market is experiencing significant growth due to rising concerns over online privacy and cybersecurity. According to reports, the global VPN market is expected to grow at a compound annual growth rate (CAGR) of 17.2% from 2021 to 2026. This increased demand for security makes VPN solutions a great option for resellers. Partnering with a reliable provider like PureVPN can help you tap into this expanding market and boost your sales.
In addition to VPNs, other hot software categories include cloud-based solutions, cybersecurity tools, productivity software, and digital marketing platforms. Offering niche or widely-used software ensures a steady flow of potential customers who are actively searching for solutions to meet their business needs.
2. Understand Your Target Audience
Knowing your target audience is just as important as choosing the right software. With a clear understanding of who your customers are, it becomes easier to tailor your sales approach effectively. Different customer segments—small businesses, large enterprises, or individual users—have different needs, budgets, and expectations.
For example:
- Small businesses often seek cost-effective, easy-to-use solutions that can be implemented quickly without needing extensive IT support.
- Large enterprises may look for scalable, highly customizable software that integrates seamlessly with their existing systems.
- Individual users are typically interested in user-friendly software that addresses specific problems, like improving productivity or securing their online privacy.
By understanding who you’re targeting, you can position your products more effectively, tailor your marketing strategies, and provide solutions that directly meet your customers’ needs. If you’re unsure of your audience, conducting surveys or reviewing your competitors’ customer base can provide valuable insights.
3. Offer Value-Added Services
One of the most effective ways to stand out in a competitive market is by offering value-added services alongside the software you’re reselling. As a software value added reseller (VAR), you can provide additional services like:
- Technical support: Assisting customers with installation, setup, and troubleshooting.
- Training and onboarding: Educating clients on how to use the software effectively.
- Customization: Tailoring the software to meet specific business needs or integrating it with existing systems.
These added services make your offering more attractive to customers who may need more than just the software itself. It also allows you to charge higher prices, increasing your overall profit margins. For example, many businesses selling white label software provide additional support services to differentiate their offerings from competitors.
4. Build Strong Partnerships with Software Developers
Establishing a solid relationship with the software developers you are reselling for is essential for long-term success. A good partnership ensures you have access to up-to-date information, technical support, and marketing materials. Some software developers even offer specialized software developer reseller programs, which include benefits like exclusive discounts, co-branding opportunities, and early access to new features.
For example, partnering with a reputable software developer like PureVPN means you can rely on their consistent product updates and security improvements, allowing you to sell the product confidently. Strong partnerships also help when it comes to resolving technical issues or providing advanced support to your customers. Having the backing of a reliable developer can give you peace of mind and improve customer satisfaction.
5. Create an Effective Marketing Strategy
Your success as a software reseller depends heavily on your ability to market your products effectively. Without a solid marketing strategy, your potential customers may never discover the software you’re selling. Several digital marketing techniques can help you promote your reseller business:
- Search Engine Optimization (SEO): Optimize your website and content to rank higher in search engine results. This helps attract organic traffic from people searching for relevant terms like “software reseller,” “resell software,” or “white label software reseller.”
- Pay-Per-Click (PPC) Advertising: Use targeted ads on platforms like Google and social media to reach potential customers who are actively looking for software solutions.
- Content Marketing: Create blog posts, guides, or case studies that demonstrate the value of the software you’re reselling. Educational content helps establish your credibility and attracts customers seeking more information.
Email marketing is another effective way to stay in touch with your customers. Regularly sending out updates, promotions, and tips can keep your audience engaged and more likely to purchase. It’s also essential to maintain an optimized website, as many potential customers will research online before making a purchasing decision.
6. Provide Excellent Customer Service
In the software industry, excellent customer service is one of the key factors that can differentiate you from your competitors. Customers want to know that they can rely on you for help if they encounter any issues or need support with the software they’ve purchased. Offering round-the-clock customer service or providing a dedicated support team will build trust and increase customer loyalty.
Satisfied customers are more likely to leave positive reviews and recommend your services to others, which can lead to word-of-mouth referrals. This organic growth can significantly boost your sales without requiring additional marketing spend. You can also implement a feedback loop by regularly collecting customer feedback and improving your services based on their input.
7. Offer Flexible Pricing Models
When it comes to pricing, one size does not fit all. Offering flexible pricing models allows you to cater to a wider range of customers. Common pricing options include:
- Monthly subscriptions: Perfect for SaaS solutions where customers can pay a recurring fee for ongoing access to the software.
- One-time payments: Ideal for standalone software where customers prefer to pay once for lifetime access.
- Tiered pricing: Offering different levels of service (basic, premium, enterprise) with varying features can appeal to customers with different needs and budgets.
By providing various pricing options, you make your product more accessible to different segments of the market. For instance, customers who are hesitant to commit to a large upfront cost might opt for a subscription-based model. You can also introduce special offers, bundles, or discounts for bulk purchases, such as offering a discount on white label software to resell when customers buy multiple licenses.
8. Leverage White Label Solutions
White label solutions offer you the opportunity to sell software under your brand, even if you didn’t develop the product. This gives you full control over the branding, marketing, and customer experience, which is essential for building a recognizable and trusted business. By leveraging white label software, you can establish your brand in the software market without having to invest in product development.
For example, the PureVPN Reseller Program offers a white label option where you can rebrand and sell their VPN services under your name. This is an excellent opportunity to provide a high-demand product without having to worry about development, maintenance, or technical updates. White labeling is a win-win model for resellers, as it combines brand building with a reliable product.
9. Keep Up with Industry Trends
The software industry is constantly evolving, and staying up-to-date with the latest trends is crucial for success. Emerging technologies, customer demands, and software features can change rapidly, so it’s essential to keep track of new developments.
For example, as cybersecurity becomes an increasingly critical concern, more customers are looking for VPNs and encryption tools. By staying informed about trends in cybersecurity, cloud computing, and SaaS, you can adjust your product offerings to meet customer demand and remain competitive.
Attending industry conferences, following software development news, and networking with other professionals in the field can help you stay on top of the latest trends.
10. Monitor Performance and Adjust Strategies
Finally, it’s important to regularly monitor your business performance to ensure that your strategies are working. Track your sales, customer feedback, website traffic, and overall business growth to identify what’s working and what isn’t. This data will help you make informed decisions about your product offerings, marketing strategies, and customer service approach.
For example, if a particular software product isn’t selling as well as expected, you might consider offering a different solution or adjusting the pricing. If your customers are consistently asking for certain features, you can work with your developer partner to add those features. Data-driven decision-making ensures that you are continually optimizing your business for growth and long-term success as a software reseller.
By following these ten tips, you can attract more customers, increase your sales, and build a successful software reseller business.
How to Scale Your Business as a Software Reseller?
Once you’ve implemented the tips above and started seeing positive results, scaling your business becomes the next logical step. Scaling doesn’t just mean increasing sales—it involves building a more sustainable business model that can handle growth efficiently. Here are a few strategies to help you grow your software reseller business:
1. Expand Your Product Line
Diversifying your product offerings is one of the most effective ways to scale your business. Instead of relying on a single software product, start offering a variety of solutions that cater to different customer needs. For instance, if you’re already reselling VPN software, consider adding complementary products such as antivirus, data backup solutions, or cloud storage software. By expanding your product line, you attract a broader audience, increase your sales potential, and mitigate risks associated with relying on a single software category.
2. Increase Your Marketing Efforts
To scale successfully, you need to reach a larger audience. This means increasing your marketing efforts across various channels, including SEO, paid advertising, and social media. As your business grows, reinvest profits into more extensive advertising campaigns, content marketing strategies, and email marketing to engage with both potential and existing customers. The goal is to drive more traffic to your website, convert leads into customers, and continually increase brand awareness.
Additionally, consider running targeted campaigns, such as focusing on businesses that need specific software solutions like cybersecurity or productivity tools. A well-rounded marketing strategy helps expand your reach and grow your customer base.
3. Build a Strong Sales Team
As your business scales, managing a growing number of customer inquiries and closing deals may require a dedicated sales team. A strong sales team can significantly increase conversion rates by handling leads more efficiently, offering personalized service, and following up with potential customers. A well-trained sales team can also help upsell and cross-sell products, ensuring that each customer receives the best possible software solutions for their needs.
Investing in sales training and building a team that understands both the software products you offer and your target market is crucial for sustained growth.
4. Focus on Retention
While gaining new customers is essential, retaining existing ones is equally important for long-term business success. Customer retention is often more cost-effective than customer acquisition, and satisfied customers are more likely to refer others to your business. To retain customers, offer excellent customer service, provide timely updates about new features or improvements, and maintain clear communication.
Additionally, you can implement a customer loyalty program, where you offer special discounts, upgrades, or exclusive features to long-term clients. Staying engaged with your current customers through newsletters, personalized offers, or exclusive promotions will ensure they remain loyal and continue to bring value to your business over time.
By focusing on these key areas, you can effectively scale your software reseller business and create a sustainable, long-term growth strategy.
Conclusion
Being a software reseller can be a highly profitable business if done right. By following the tips mentioned above, you can attract more customers, boost your sales, and scale your business over time. Choosing the right reseller program is also key to your success, and the PureVPN Reseller Program is an excellent option to consider. With PureVPN, you get a trusted product, white label options, competitive pricing, and top-notch support—everything you need to succeed as a software reseller.
Ready to start your software reseller journey? Sign up for the PureVPN Reseller Program today and take the first step toward growing your business!