@Reseller Program Or Affiliate Program? Which Is Better?

When it comes time to expand your business there are two ways you can hire a work force without having to pay them out of pocket. You can start an affiliate program, which is a simple way to hire a motivated sales force and pay them based on their production. But one often overlooked method of expanding the online business is with a reseller program.

The difference between a reseller program and an affiliate program is that resellers usually buy your product or service from you at the price that you set then turn around and sell the product or service to their customers for a profit. There are advantages and disadvantages to both kinds of programs. I prefer affiliate programs, but there are businesses that can benefit from a reseller program.

If you sell products or services below market value then you can set up a reseller program with not much risk. One industry that is rife with resellers is the web hosting business. Many large web hosts have a reseller program where they sell a huge amount of web space for a low price. Their resellers then sell the hosting services for a profit. There are literally thousands of resellers out there for the various hosting companies online.

Almost any product or service can benefit from a reseller program. But most will benefit from an affiliate program too. With a reseller program you don’t have to spend as much time and energy creating helpful materials. It’s almost obligatory for an affiliate program. In fact, it is recommended if you want your affiliate program to succeed. Resellers tend to be a more independent lot and many like to add their own services to the products and services they purchase from you.

When it comes to deciding between a reseller program or an affiliate program, think long term. It is easier for a reseller to get out than for an affiliate. Affiliates tend to market heavily and may have ads, newsletters, websites, and other online marketing collateral built just around your products and services. And the personalities of resellers vs. affiliates must be considered as well. A reseller may demand more service from you whereas your affiliates will follow your lead more. Something else for you to consider.

So should you have an affiliate program or a reseller program. They both benefits and drawbacks. It just depends on your goals.