Reselling is one of the great business ideas for people who want to start with minimum resources and investment. In this article, we will cover more details about reselling business and some crucial tips, you need to start and succeed.
What is a reselling business?
Before we jump to the tips, let me first share what it is actually.
A reseller is a person who resells products and services. A reseller usually does not need to invest in setting up infrastructure. Without investing a penny, he can start selling and earning. This model of business is called a reselling business.
The reseller is really important in the VoIP industry. For example, the wholesale VoIP market is huge, but class 4 Softswitch is an expensive solution considerably. Therefore, resellers can partner with a wholesale provider and start selling to earn without buying this VoIP Softswitch.
The reseller model is so important in the VoIP industry that in our smart telephony platform, ASTPP, we have a separate and comprehensive reseller module.
Now, as you understand the importance of reselling business, let us share the top tips to help you get started:
1. White labeling or exclusive contract
This is necessary to protect your interest. If your provider uses a solution that supports white labeling, then letting you use a white label solution is simple as the software provides that functionality. However, it is necessary to learn about the provision of white labeling. Another useful tip is to try to get an exclusive contract. This can let you make more money as for certain regions, you will be the only one selling this service.
2. Everything on paper
Verbal commitments cannot be proven. Therefore, it is necessary to have written commitments. Both parties should sign a contract and make the partnership legal to protect each other’s interests. Generally, VoIP service providers offering a reselling business to resellers have a complete process in place, including NDA and contracts. However, there is nothing wrong to initiate this discussion.
3. Freedom of choosing plans and rates
In the VoIP industry, the most popular reselling business model is paying predefined fees per contract per customer to the main provider. To make money, a reseller can define his own customized rate card and plan. This is necessary to grab more business and ROI, of course. In ASTPP, as we mentioned reseller has complete independence. He or she can create different rate plans to add the profit margin as per their convenience. It means for multi-tenant IP PBX solution based business phone services, a reseller and a provider can have different rate cards. You need to confirm this and other terms related to independent billing with your partner.
These are the top 3 tips to follow to get started and move in the right direction with your reselling business.
You can also launch your own business and create a network of resellers selling for you. For both, provider and reseller, we have a smart telephony platform to offer. It has a complete reseller module. Contact us to book a risk-free trial.