[GTM glossary](/glossary.txt) Reseller GTM Strategy & SaaS Metrics # Reseller In short A reseller is a business that sells another company's products or services to end customers. It buys or licenses from the vendor, sets its own price within agreed terms, and keeps the difference as margin. For a vendor, resellers extend reach into markets, regions, or customer types that a direct team cannot cover efficiently. ## How reselling works The vendor and reseller sign an agreement covering pricing, territory, support duties, and sometimes minimum volumes. The reseller owns the customer sale and often the first line of support. ### Margin model The reseller buys at a discount from list price or earns a percentage on each deal. The discount pays for sales effort, support, and any added services. ### Customer ownership Who owns billing and the relationship varies. Define it in the contract, along with how the vendor handles renewals and data. --- ## Reseller vs. related partner types * **Reseller:** Sells the vendor product, usually as is. * **Value-added reseller:** Adds services such as setup, integration, or training before selling. * **Referral partner:** Passes leads but does not handle the sale. * **White label:** Sells the product under its own brand. --- ## A practical example Say a security software vendor has no sales team in a certain region. It signs a local IT services firm as a reseller. The firm sells the software to its existing clients, handles first-line support, and keeps a margin on each license. The vendor gains customers without hiring locally. --- ## Common reseller program mistakes * **Signing many, enabling few:** Dozens of inactive resellers cost more to manage than a few active ones. Train and support the ones that sell. * **Channel conflict:** If your direct team competes with resellers on the same deals, resellers stop investing. Set clear deal registration rules. * **No feedback loop:** Without shared pipeline data, you cannot see which resellers perform. Track deals by partner. --- ## Reseller FAQs **What is a reseller?** A reseller is a company or individual that buys or licenses products from a vendor and sells them to end customers, keeping a margin. Resellers typically handle the sale and often first-line support, giving vendors reach they could not easily build alone. **What is the difference between a reseller and a distributor?** A distributor usually buys in bulk from a manufacturer and supplies resellers or retailers, often managing logistics and credit. A reseller sells to end customers. In software, the line blurs, but distributors typically sit one tier above resellers. **How do resellers make money?** Resellers earn the margin between the price they pay the vendor and the price they charge customers, or a percentage commission on each sale. Many also earn from services such as implementation, training, and ongoing support. **What is the difference between a reseller and a value-added reseller?** A reseller sells a vendor product largely as is. A value-added reseller adds its own services, such as integration, customization, or training, and sells the combined offering. The added services usually justify higher fees and a closer customer relationship. Share term --- ## More related phrases * [Markup](/glossary/markup.txt) * [Business-to-government](/glossary/business-to-government.txt) * [Distribution channels](/glossary/distribution-channels.txt) ## Similar phrases * [Value-added reseller (VAR)](/glossary/value-added-reseller.txt) A value-added reseller (VAR) buys a vendor’s product and sells it bundled with its own services, such as setup, integration, or training, to end customers. * [White label](/glossary/white-label.txt) White label means one company builds a product or service that another company rebrands and sells as its own, with no mention of the original maker. * [Sales partnerships](/glossary/sales-partnerships.txt) Sales partnerships are agreements where outside companies help find, influence, or close deals for your product in return for commission, margin, or shared benefit. * [Channel partners](/glossary/channel-partners.txt) Channel partners are the network of resellers, referral partners, agencies, and integrators a company manages as a program to extend its sales reach. * [Channel sales](/glossary/channel-sales.txt) Channel sales is a model where a company sells through third parties such as resellers and agencies instead of, or alongside, its own direct sales team.