What It Is
A reseller partner buys your product and sells it to the end customer, often bundling it with their own services. They manage the full customer relationship, including pricing, support, and sometimes even billing. Reseller partners are one of the most common types of channel partners, and usually need deeper onboarding and training to represent your product effectively.
When to Use Reseller Partners
Build reseller partnerships when you need to scale sales faster than direct hiring allows, when entering markets where local resellers have established customer relationships and market credibility, or when customers prefer buying from trusted local providers rather than directly from vendors. Reseller partners work best when your product has clear pricing structures that support partner margins, when sales processes are repeatable enough for partners to execute independently, or when geographic expansion requires local presence you don't have. Use reseller channels for SMB and mid-market segments where deal sizes support partner economics but don't justify dedicated direct sales resources.
How It Works
Reseller partners join your partner program and receive product training, sales enablement, and pricing structures. They purchase products at wholesale prices (typically 20-40% discount) and resell to customers with markup. Resellers handle prospecting, demos, closing, implementation, and ongoing customer support. They own customer relationships and often bundle your product with complementary solutions or services. Revenue flows through resellers who invoice customers directly. Most reseller programs include deal registration to prevent channel conflict, territory assignments, and tiered partner levels with increasing discounts based on volume commitments. Successful programs provide reseller partners with sales tools, technical certifications, and dedicated partner support.
Benefits for Partner Programs
Reseller partners provide instant sales capacity and market coverage without hiring internal teams. They bring established customer relationships, local market knowledge, and industry credibility that accelerates sales cycles. Reseller channels scale revenue without proportional increases in sales overhead because partners bear sales costs. In partner marketplaces, reseller partnerships attract partners looking for products to add to their portfolios. Resellers often bundle your product with services or complementary solutions, creating stickier customer relationships and higher lifetime value. For B2B companies, mature reseller channels generate predictable recurring revenue as partners build customer bases and drive renewals.
Reseller Partners vs Referral Partners
Reseller partners purchase and sell your product directly to customers, owning the entire customer relationship and sales process. Referral partners introduce prospects to your sales team and earn commissions but don't sell the product themselves. Resellers manage pricing, negotiations, and customer support. Referral partners simply make introductions then step away. Reseller partnerships require extensive enablement, product training, and ongoing channel management. Referral partnerships need minimal support and tracking. Resellers generate larger revenue volume but require more program infrastructure. Referral partners are easier to manage but produce smaller deal flow. Both are channel partners, but resellers provide true sales scalability while referrals provide qualified lead generation.
