What is the difference between a reseller program and an affiliate program?

Many people ask me what the difference is between becoming an affiliate or a reseller. What is the simple answer? Let’s say there is a reseller and an affiliate, both selling the same digital service for XYZCO; however, there are significant differences between each person’s agreement.

What is a reseller? A reseller creates a reseller account with XYZCO and then (kindly) asks customers to sign up for products or services. The reseller can sometimes provide technical support for their customers, and in some cases, they handle billing directly with their customers, and then the reseller company completes the order. Many companies offer label solutions and you can always include customer support to look like their service. With digital products, your customers pay you an amount of $xxx.xx and then your reseller completes the order and charges you their $xx.xx wholesale reseller fee for you to make a difference on each order. Customers deal directly with the reseller, and resellers can set their prices at any level they choose.

What is an affiliate? An affiliate is strictly an evangelist for our service. He or she refers customers or traffic to XYZCO, where they open their own accounts with the affiliate’s special code to let us know who referred them. XYZCO pays affiliates on commission and the actual rate is an ongoing percentage of referred sales. Many affiliate programs pay a one-time commission; however, companies like SendPressReleases.com – Send Press Releases Affiliate Program offer a free program to sign up and they pay you forever for any of your referred customers, allowing you to build a real affiliate business with digital products they sell.

There are pros and cons to each type of account, and which one is right for you will depend on how long you’d like to invest.

Key points to consider when becoming a reseller;

Getting started as a reseller is very easy and can be done in a few minutes. I would recommend taking some time and doing some research on the type of monetization terms each reseller program offers. Many key points for both reseller and affiliate can be the same and really come down to your earning potential and success with the individual program.

1. How long does the software track client visitor cookies? Most reseller software will have a tracking feature so if you refer someone via a referral tracking link it will keep track if they then purchase for up to 30/60/90 days and sometimes longer. Many people take their time getting started and executing an order, so this is definitely a very important factor.
2. Many reseller programs will pay you for your first referral you order, but then the terms may change. Ideally, you’d like that customer to get paid every time they place an order.
3. Bottom line, read the terms a reseller provides you and see if they are fair and profitable. There are many types of reseller businesses you could start, so first you need to identify what type of reseller business model is right for you. Perhaps the overall key factor is reselling something you are interested in or passionate about? Choosing a reseller for profit is also not always a bad idea!

Key points to consider when joining an affiliate program;

1. Minimum payment threshold, this can be the amount you must generate before a payment is sent to you for your affiliate marketing efforts. The payout limit can vary from program to program and can range from $5 to $100 and in some cases if you don’t meet the terms (within 120 days as an example) you will lose your affiliate earnings. I would recommend learning the terms before joining any program, no matter how good the initial earnings model looks.
2. Are the products you want to affiliate with profitable and easy to process? This could be a very good question to ask yourself. Keep an eye out for surprisingly high commissions, yes sometimes internet marketing is like pyramid schemes and if an affiliate program sounds too good to be true it probably needs a closer look.
3. Earn money kind of products and MLM. I’m sure you know someone in one of these product categories, maybe even making money. don’t Move in another direction, stats and numbers don’t lie. These types of programs work on their greed and in many cases do not provide a product that justifies the potential. Do your homework..

What is better an affiliate program or a reseller program?

These are the questions you need to determine for yourself. With each comes its own set of pros and cons. With a reseller program you may have more of an independent business that can grow over time, however an affiliate program is easy to start for free in many cases and can be a great part time business or a second income.

Here are some statistics to ponder as you consider your options;

• Affiliate marketing spending is approaching $5 billion in the US.
• Affiliate marketing generates a whopping 1% of the country’s total GDP in the UK.
• Approximately 15% of all revenue in the digital media industry comes from affiliate marketing.
• In 2016, more than 80% of brands use affiliate marketing.

Why do you have a setup fee?

Many reseller and affiliate programs will charge an account or setup fee to get started, and yes, this is very common. Reseller programs that offer you great software, support, even white-label customer support to assist and help your customers on your behalf. This can be a fantastic situation and can allow you to run your own business and have the support of your affiliated reseller company. I find that digital products that are in high demand, that also offer support to your customers on your behalf, are some of the best and most effective programs.