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Seven Program Considerations for SaaS Resellers

SaaS Reseller Programs

SaaS stands for "Software as a Service". It is a software delivery model in which a software application is hosted by a third-party provider and made available to customers over the internet.

In a SaaS model, customers do not have to install the software on their own computers or servers. Instead, they access the software through a web browser or a dedicated app that is connected to the internet. The software provider takes care of the maintenance, security, and upgrades of the software, allowing customers to focus on using the software to achieve their goals.

SaaS has become increasingly popular in recent years, as it provides businesses with the ability to access powerful software solutions without the need for expensive infrastructure, maintenance, or IT resources. SaaS solutions can range from enterprise resource planning (ERP) systems to customer relationship management (CRM) software, and from project management tools to email marketing platforms.

By using a SaaS model, businesses can benefit from flexible pricing options, scalability, and the ability to access software from anywhere in the world, as long as there is an internet connection.

The Business Opportunity for SaaS Resellers

SaaS reselling provides a significant business opportunity for entrepreneurs and businesses looking to expand their product offering and generate additional revenue streams. Here are some reasons why SaaS reselling can be a lucrative business opportunity:

Low Startup Costs

SaaS reselling requires minimal startup costs compared to developing and marketing a software product from scratch. Resellers can leverage the existing product, infrastructure, and support offered by the SaaS provider, eliminating the need for significant investments in technology, staff, and resources.

Recurring Revenue

SaaS reselling offers a steady source of recurring revenue, as customers typically pay for access to the software on a monthly or annual basis. This allows resellers to build predictable revenue streams that can be leveraged to grow and scale their business.

Access to a Broader Customer Base

Resellers can tap into the existing customer base of the SaaS provider and leverage their marketing and sales efforts to reach a wider audience. This allows resellers to expand their reach and target new customer segments, without the need for additional marketing spend.

Upsell and Cross-sell Opportunities

SaaS resellers can take advantage of upsell and cross-sell opportunities by offering complementary products and services to their existing customer base. This allows resellers to increase their average revenue per customer and generate additional revenue streams.

Flexibility and Customization

SaaS resellers can customize the product offering to meet the specific needs of their target audience. This allows resellers to differentiate themselves from competitors and offer a unique value proposition to their customers.

Five Types of SaaS Reseller Programs

There are different types of SaaS reseller programs available, each with its own benefits and requirements. Here are some of the most common types of SaaS reseller programs:

  1. Referral reseller program: A referral program is the simplest type of reseller program. As a referral partner, you refer potential customers to the SaaS provider and receive a commission or incentive for each successful referral. This type of program requires little to no technical expertise, and the commission rates can range from 10% to 30%.

  2. Affiliate reseller program: An affiliate program is similar to a referral program but requires a bit more effort from the reseller. In addition to referring customers, affiliate partners promote the SaaS product through various marketing channels such as social media, email marketing, and content marketing. Affiliate partners receive a commission or incentive for each successful sale generated through their efforts.

  3. White-label reseller program: A white-label program allows resellers to brand the SaaS product as their own and resell it under their own name. White-label partners typically have more control over pricing, marketing, and customer support. This type of program is ideal for businesses that want to offer a fully integrated solution to their customers without developing the software in-house.

  4. Co-branded reseller program: A co-branded program allows resellers to promote the SaaS product under a joint brand name. Co-branded partners receive marketing and sales support from the SaaS provider and can customize the product with their own branding and messaging. This type of program is ideal for businesses that want to leverage the reputation and brand equity of the SaaS provider while maintaining some degree of control over their own branding.

  5. Value-added reseller program: A value-added program is the most comprehensive type of reseller program. Value-added partners typically integrate the SaaS product with their own products or services and provide additional value to customers through customization, training, support, and other services. Value-added partners receive a higher commission rate than other types of resellers, but they also have more responsibilities and requirements.

Seven Program Considerations for SaaS Resellers

As a SaaS reseller, there are several program considerations to keep in mind when choosing a SaaS product to resell. Here are some key factors to consider:

1. Product Fit

It's essential to choose a SaaS product that fits your target audience's needs. You should consider the functionality, user interface, and features of the product to ensure it aligns with your target audience's requirements.

2. Pricing Model

The pricing model of the SaaS product is critical for your business as a reseller. You need to consider whether the pricing model aligns with your target audience's budget and whether it's profitable for your business.

3. Revenue Share

It's essential to know the revenue share agreement between you and the SaaS product provider. You should consider the percentage of revenue share, payment terms, and payment method to ensure it's profitable for your business.

4. Support and Training

You should choose a SaaS product that provides excellent customer support and training to your customers. It's important to consider the availability and quality of support and training materials to ensure your customers have a positive experience.

5. Integration and Customization

It's essential to choose a SaaS product that integrates with other tools and provides customization options. You should consider whether the product can integrate with your existing systems and whether it provides customization options to align with your customers' needs.

6. Branding and Marketing

You should choose a SaaS product that allows you to brand and market the product as your own. It's important to consider whether the product allows white-labeling, co-branding, and marketing support to ensure you can effectively market the product to your customers.

7. Data Security and Compliance

It's essential to choose a SaaS product that provides robust data security and compliance measures. You should consider the product's security features, compliance with data protection regulations, and data privacy policies to ensure your customers' data is protected.

About LMS Portals

At LMS Portals, we provide our clients and partners with a SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.

Our platform is ideal for our SaaS reseller partners as it allows you to launch a private, customized training portal for each of your corporate clients.

The system includes built-in, SCORM-compliant course authoring software that enables most anyone to build engaging courses quickly and easily.

We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.

If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.

Together, these features make the LMS Portals platform the ideal solution for our SaaS reseller partners.

Contact us today to get started or visit our Partner Program pages

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