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Why being Value Added Reseller actually makes so much sense for tech companies

Why being Value Added Reseller actually makes so much sense for tech companies

So… you are a tech company, offering some kind of content-related product…

That being:

 

  • Video
  • Audio
  • Images
  • Plugins for third-party platforms
  • (such as WordPress, Shopify etc.)
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  • Ad-serving Networks
  • Mobile Apps Builder
  • Distributor
  • e-commerce creation platforms

…or any other kind of digital content provider, that ultimately needs to:

  • Serve any type of data internationally
  • Keep the data in the cloud

 

And you are asking yourself  “Why should I care about being Value Added Reseller of anyone?”

There are simply 2 main reasons:

  1. To provide additional value to your customers
  2. To make more money

But, first thing- first. What is a Value-added reseller?

In short – it’s when you, as a tech company add some third-party products or services to your offering, so that it makes sense for your end client. You partner with the provider of those services by implementing them under your offer and splitting the earnings with them.

Now, wait a minute… What do you mean splitting the earnings?

Don’t worry, it’s not like we are talking 50 % or something…

Usually the additionally-added service or product (being subject of reselling) costs only a fraction of the entire deal so basically, we are talking anywhere between 0,01% and  10 %. It is safe to say that in all other cases it’s not value-added reselling but a full-scale partnership.

That being said we are getting to the main reason why we are telling you all this…

It is a well-known fact that tech companies have their creative ways for monetization.

Moreover, it is a common thing to see one tech company depending on other for services implementation and usage.

What do I mean? Imagine a hosting provider, that offers his services to sites owners.

Some of those site owners will have the intent to provide their content to, let’s say – multiple continents. To do that with the good-enough quality, they will need CDN services in addition to the hosting provider’s.  In this scenario – the CDN provider is the added-value company. How come? Well, for example, the original hosting company could add in their control panel the option to add CDN to the whole package for better convenience of their clients. That way, with a simple checkbox click, the end client receives everything they need, the hosting provider gets the chance to make his customers happy and make an extra buck in the process, and the CDN provider gets his service purchased. It is a win-win for all players.

Even further – the end client will get a ready-to-use solution instead of searching other places for proper CDN.

Another good example is a video sharing platform such as our well-known social networks. In order for them to successfully deliver those videos to any point of the world, they would need a Content Delivery Services Provider to serve their content. Without that, those videos would load slow as hell, or even worse – they won’t load at all!

You get the point.

Now the thing is – if the third-party added value service is not reliable enough, the whole offering (main service + added service) will suffer.

That’s why it is imperative for tech companies to take their time to choose wisely when they are looking to whom to become a value-added reseller.

 



 

 

Secondly, there’s the money subject – is the partner’s offer giving you space for actually making money out of it , or is it shaped just so they are happy, whithouth any consideration of your needs ? 

After all, let’s not forget that you are a business, and even though the added value is the most important, money part should be part of the equation too…

So if you are one of those types of tech businesses, that could benefit from such a value-added reseller program, you might just want to take a look at the “Universal CDN Value-Added Resellers Program“.

 

About The Author

Nick Markov

Is The CMO (Chief Marketing Officer) of Universal CDN. Nick is Experienced Marketing Professional, Influencer, Entrepreneur & Founder of Several Start-up companies. He runs a successful Business & Marketing Consulting company. You could find out more in his LinkedIn profile:

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