Is an Affiliate Program and Reseller Program are that different?
That’s not the million-dollar question.
Let's say there are an affiliate and resellers, they both sell the same digital service for ABC Company; however, there are significant differences between each person's agreement.
Both programs bring out new customers to the business. They both use incentives to drive new customer revenue to the system.
What about differences? Let’s see.
What's an Affiliate?
It’s a company or individual who promotes a service/product to likely customers, in exchange for a commission on the sale when such occurs. Affiliates don’t perform migrations themselves and only refer customers to the B2B website.
For example, via banner or a referral link on their website, they do Affiliate Marketing.
- It’s a way to compensate people for bringing new sign-ups to your website email subscription.
- Affiliates usually are not customers of the business they do it for money.
- Most likely an affiliate is compensated with cash for every signup they generate.
- Affiliates and new customers don’t know each other personally.
- The main motive/driver in Affiliate Marketing is the % on generated revenue.
Pros
- Easy, Quick, and free setup via provided Customer Portal
- No technical support or customer service required
- No infrastructure setup required like Billing and accounting software.
- Just place an Ad on your high-traffic websites to earn more %.
Cons
- If the affiliate does not own a high-traffic website, affiliate income may be limited and results in earning less potential
- The affiliate program is subject to change, including termination, at any time.
- No control over the prices or policies; all referrals are subject to the respective company’s Terms of Services only
What's a Reseller?
It’s a company or individual who purchases services/product to resell them to potential customers rather than consume or use them.
Pros
- Own your own business – Be your Boss.
- Unlimited growth can be expected with the Reseller program.
- Resellers can set your prices and policies.
Cons
- Up-front expenditures and setup are required.
- Reseller must provide basic customer service and technical support for their customers.
- Requires significant technical and business expertise
Summing up
When operating a web design/development business, you have the option to offer additional services to your clients such as Affiliate programs and reseller hosting – but it can be difficult to determine which one is the best fit. However, it’s important to ensure that you’re using the right option for your business’ needs.
Do you have any more questions about the difference between hosting affiliate programs and reseller hosting? Let us know in the comments section below!
