A SaaS reseller, also known as a Software as a Service reseller, is a business or individual that purchases SaaS products from a SaaS provider or software vendor and then sells or distributes those products to end customers. The SaaS reseller acts as an intermediary between the SaaS provider and the end-user, facilitating the sales process and often providing additional services and support to the customers.
The primary role of a SaaS reseller is to market, sell, and deliver SaaS solutions to businesses or individuals who may not directly interact with the original SaaS provider. This can be particularly valuable for SaaS providers who may not have the resources or expertise to reach a broader market or target specific niches.
As a SaaS reseller, you typically enter into a partnership or reseller agreement with the SaaS provider. This agreement outlines the terms and conditions, pricing, commission structure, and any additional services or support you are expected to provide to your customers. The SaaS reseller may receive a commission or a discount on the SaaS product's regular price, allowing them to make a profit on the difference when selling it to the end customers.
SaaS resellers play an essential role in the SaaS ecosystem by expanding the reach of SaaS products, providing personalized services to customers, and acting as a valuable channel for customer acquisition and support. They often bring expertise and insights into specific industries or customer segments, making it easier for customers to find and access the right SaaS solutions for their needs.
Why Become a SaaS Reseller?
Becoming a SaaS reseller can offer several benefits and opportunities, making it an attractive option for entrepreneurs and businesses. Here are some compelling reasons to consider becoming a SaaS reseller:
Low Startup Costs
Compared to developing and selling your own software, becoming a SaaS reseller typically involves lower upfront costs. You don't need to invest in software development, infrastructure, or ongoing maintenance.
Access to Established Products
As a SaaS reseller, you get access to well-established and proven SaaS products with a track record of success. These products are already developed, tested, and maintained by the SaaS provider, saving you time and resources.
Diverse Product Portfolio
By partnering with multiple SaaS providers, you can offer a diverse range of products and services to your customers. This allows you to cater to various industries and customer segments, expanding your market potential.
Many SaaS products operate on a subscription-based model, providing you with recurring revenue streams. As customers renew their subscriptions, you continue to earn commissions or discounts, creating a stable income over time.
Focus on Sales and Marketing
As a SaaS reseller, your main focus is on marketing and selling the products. The SaaS provider handles product development, updates, and customer support, allowing you to concentrate on growing your business.
Opportunities for Value-Added Services
As a reseller, you can provide value-added services to your customers, such as training, onboarding, and ongoing support. These services can help differentiate you from competitors and improve customer satisfaction.
Rapid Market Entry
Partnering with established SaaS providers allows you to enter the market quickly without the need to build a product from scratch. This agility can be advantageous, especially in fast-paced industries.
Flexibility and Scalability
As a reseller, you have the flexibility to adapt to changing market demands and trends by adding or adjusting the SaaS products in your portfolio. This scalability enables you to respond to customer needs effectively.
SaaS resellers often specialize in specific industries or niches, allowing them to develop deep expertise and better understand their customers' pain points and requirements.
Networking and Partnerships
Partnering with SaaS providers and other resellers opens up networking opportunities and potential collaborations, expanding your business reach and market presence.
However, it's important to note that becoming a successful SaaS reseller requires dedication, strong marketing and sales skills, and a commitment to providing excellent customer service. Additionally, choosing the right SaaS products and partners is crucial for long-term success as a SaaS reseller.
Ten Steps to Become a Successful SaaS Reseller
Becoming a successful SaaS reseller requires careful planning, effective marketing strategies, and a strong focus on customer satisfaction.
Here are ten steps to help you on your journey to becoming a successful SaaS reseller:
Market Research: Begin by identifying the SaaS products that have a high demand in the market. Research the target audience, their pain points, and the competitive landscape. Look for SaaS solutions that have a track record of success and positive customer feedback.
Choose the Right SaaS Partners: Select reputable SaaS companies as your partners. Consider factors such as the quality of their product, their customer support, their reputation in the industry, and the commission structure they offer to resellers.
Build a Strong Online Presence: Create a professional website to showcase the SaaS products you're reselling. Make sure your website is user-friendly, visually appealing, and optimized for search engines. Establish your presence on social media platforms to reach a wider audience.
Create Compelling Content: Produce valuable content such as blog posts, video tutorials, and whitepapers that educate potential customers about the benefits of the SaaS products you offer. This will help establish you as an authority in the field and attract more leads.
Offer Value-Added Services: Differentiate yourself from other resellers by providing additional services to your customers. This could include personalized onboarding, training, and ongoing support to ensure customers get the most out of the SaaS products they purchase from you.
Focus on Customer Success: Prioritize customer satisfaction and success. Happy customers are more likely to become loyal clients and refer others to your business. Encourage reviews and testimonials from satisfied customers to build trust with potential buyers.
Implement Effective Sales Strategies: Develop a sales strategy that highlights the unique selling points of the SaaS products you offer. Utilize persuasive techniques to demonstrate how these products can solve your customers' problems and improve their business operations.
Networking and Partnerships: Attend industry events, webinars, and conferences to network with potential clients and other businesses in the SaaS ecosystem. Form partnerships with complementary service providers to extend your reach.
Monitor and Analyze Performance: Continuously track your sales performance, customer feedback, and marketing efforts. Analyze the data to identify areas for improvement and adjust your strategies accordingly.
Stay Updated with the Industry: The SaaS industry is constantly evolving. Stay up-to-date with the latest trends, technological advancements, and changes in the market to remain competitive and provide the best possible solutions to your customers.
Please note that becoming a successful SaaS reseller takes time and persistence. It requires a commitment to delivering value to your customers and adapting to the changing needs of the market. With dedication and a well-thought-out approach, you can build a thriving SaaS reselling business.
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.
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 clients and SaaS reseller partners.