Reseller
ree-SEL-er
A third-party company that purchases a product and sells it to end customers, often adding services or bundling it with other products.
A reseller buys your product and sells it to their customers. They handle the customer relationship, often adding implementation services, training, or support on top of your product. You get distribution; they get margin.
In enterprise software, resellers range from small consultancies to global firms like CDW or SHI. They add value by having existing relationships with buyers, understanding procurement processes, and bundling multiple products into a complete solution. This is the core of channel sales. It differs from direct sales, where your own reps own the customer relationship end to end.
For SaaS companies, the reseller model has evolved. Cloud marketplaces (AWS, Azure, GCP) act as modern resellers: customers buy your product through their existing cloud billing relationship. This is often the easiest path to enterprise adoption because it bypasses traditional procurement and can accelerate a land-and-expand strategy.
Examples
A regional IT reseller sells a cybersecurity product.
The reseller has relationships with 200 mid-market companies in the Southeast. They bundle the cybersecurity product with their managed IT services. The reseller handles the sale and first-line support. The vendor gets 200 new customers without a local sales team.
A SaaS company lists on the AWS Marketplace.
Enterprise customers purchase the product using committed AWS spend. The AWS Marketplace handles billing and takes a fee. The SaaS company avoids the prospect's procurement process because the purchase goes through an existing AWS agreement.
A company builds a reseller program.
The program includes deal registration (to avoid channel conflict), sales training, co-marketing funds, and a partner portal with sales materials. Resellers earn 25% margin on deals they close.
Frequently asked questions
How is a reseller different from a referral partner?
A reseller buys and resells the product, owning the customer billing relationship. A referral partner introduces prospects but the vendor closes the deal and owns the customer relationship. Resellers take higher margin but provide more sales effort.
What margin do resellers typically earn?
20-40% of the deal value. The margin depends on how much value the reseller adds. Pure resale with no added services earns less. Resellers who provide implementation, training, and support earn more.
Related terms
Selling products through third-party partners like resellers, distributors, or value-added resellers instead of directly to end customers.
A company that builds and sells software products, often as a partner that integrates with or extends a larger platform.
A go-to-market strategy where partnerships with other companies drive customer acquisition and revenue through co-selling and integrations.
A sales collaboration where two companies work together to close a deal, leveraging each other's relationships and expertise.
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