How to Resell Software: A Comprehensive Tutorial


App and software development are pretty beneficial processes that could help developers significantly. In addition to being able to gain millions of users and recognition as a result, developers can also seize many opportunities to generate revenue. Generating revenue from software and applications is always limited to monetization models. And monetization models are indeed one common way for developers to generate revenue. However, more ways could be as beneficial as monetization models or even more. But did you know that there is a more effective way of generating revenue that everyone uses? This effective way is reselling. That is why, in this article, we will explore the software and app reselling market and the benefits of doing so. Read on to learn how to effectively resell software and generate revenue for your upcoming projects!

What is Software and App Reselling and How Does It Work?

So, what exactly is software or app reselling? As the word “resell” implies, software reselling is the process of exploring and buying a piece of software or app from a manufacturer or a developer and starting to distribute and sell it to users. The process of software reselling is like an endless chain where resellers act as intermediaries that connect manufacturers and developers. This helps them reach a wide base of audiences and users that they wouldn’t have reached on their own.

Usually, the process goes as follows: a manufacturer or a group of developers create a new product that would be suitable for market needs. A reseller would then recognize the product through many channels, either marketplaces, direct sales, and so on. He would then start negotiating and making offers to buy the whole software or even get a license to use it. Lastly, he would start offering this software to businesses and organizations that make good use of it.

In addition to this form of software resell, it sometimes takes another direction. Software resell could also be the process of crafting a piece of software, such as a game or an application, to meet market needs. Developers would then offer this software to businesses directly without needing any intermediaries. These are usually reselling programs and are popular among SaaS platforms, especially no-code platforms.

Both forms lead to the same outcome, which is generating revenue; the only difference is the missing party in the chain.

Why Would Someone Become a Software or App Reseller?

In your opinion, why would individuals and developers choose to be involved in reselling? Of, course, your first answer would be generating revenue. However, in addition to generating revenue, individuals and developers have plenty of reasons why they would go through this process, and we will demonstrate a few.

The first reason is the lower prices. If you think about it, being a reseller in many cases wouldn’t require getting involved in the development. You will only receive the final product. Even in the case of being a part of reselling programs, developers usually depend on no-code platforms. This saves much more money and effort than traditional development. In either scenario, the financial burden of expenses like coding, testing, design, and so forth wouldn't bother a reseller or developer.

The second reason that usually drives individuals and developers to learn how to resell software is focusing on one direction. Traditional development is associated with many technical aspects and processes that require both effort and extensive knowledge. In this case, resellers wouldn’t get involved in any of these aspects. They would only focus on marketing and distributing the apps and software to businesses.

Lastly, the chances of establishing sound relationships with manufacturers and vendors and cultivating partnerships are enhanced through software resell. Numerous software companies offer reseller programs that give resellers access to resources, incentives, and support. Resellers can improve their capacity for selling by forming partnerships with respectable software manufacturers. These companies provide resellers with training, marketing resources, and technical support that would make the process of reselling much more effective.

Benefits of Software or App Resell

Now that we know the reasons why someone would start learning how to resell software, we have to ask yet another very important question. This would be how reselling software or applications would benefit an individual and to what extent. Let us find out!

Continuous Revenue Streams

  Continuous Revenue Streams

There are a lot of software and apps that work on subscription models. This gives resellers a steady amount of recurring income over time. By selling subscription rights or plans for automated renewal, resellers can generate steady cash flow. This results in creating a business model that will last for a long time. This recurring revenue plan not only makes resellers' finances more stable but also gives them a better idea of how much money they will make and how fast their business will grow. Resellers can also maximize the lifetime value of clients and optimize their income streams for long-term growth and profitability. They can build solid connections with customers and offer services that add value to the customer's purchase.

Access to Customer Insights and Market Intelligence

Access to Customer Insights and Market Intelligence

Businesses can get useful information about their customers and the market by reselling software or apps. This helps them make sound business decisions and develop their companies effectively. Resellers can learn a lot about their customers' preferences, concerns, challenges, and buying habits by talking to them, getting feedback, and tracking how they use their products. Based on this information, resellers can change the products they sell, how they market them, and how they talk to customers to better reach their goals and keep them interested. They can also find new trends, threats from competitors, and growth chances by using analytics tools and market analysis resources.

Types of Software and App Reselling Models

As we previously said, reselling is not only being an intermediary and offering digital products to businesses, it is much more than that. There are many types of software and app reselling that resellers get to take advantage of and experience.

Value-Added Reselling

The first and most common type of reselling is value-added reselling. It is one form that businesses usually favor for its convenience and many advantages. In this type, the reseller would empower the application or software with extra features and advantages. So, instead of offering the application or software only, the reseller would offer extra features, customer support, customizations, and so on. This drives businesses to be drawn to buying the software or application, which leads to increased sales.

White Label Reselling

The second type, which is also a very common one, is white-label reselling. You might have come across the term white label here and there, so let us tell you what it means. In all other types of reselling models, the reseller would usually give credit to the manufacturer or developer who created the software or application. However, in the case of white-label reselling, the reseller would purchase not only the software but also the right to establish a new brand. So, the application or software would be distributed and offered under a new branding that belongs to the reseller as their product.

Subscription Reselling

Lastly, there is subscription reselling. In this type, a reseller wouldn’t only make a one-time sale to a business. Instead, they offer businesses and users software and applications at a certain subscription fee, which they have to pay to gain full access. This type is very common, especially for cloud software solutions. It is also the best way to gain recurring revenue.

How To Resell a Software: 4 Tips You Would Definitely Need

Build Strong Vendor Relationships

The first tip is to build strong connections with the software companies or distributors whose products you're selling. This can give you access to useful things like training, marketing materials, special deals, and new releases or updates before they come out to the public. You can talk to vendors daily to find out about new products, fluctuations in prices, and any special deals you can use to bring in customers. Getting to know your vendors and earning their trust can also help you get better service when you need it.

Choose the Right Software

The second tip is to pick software or applications that are in high demand and will be useful to the users you are interested in purchasing. Do some research on the market to find well-known software or niche products that meet specific needs. When picking which software to resell, you should think about things like price, features, dependability, and customer service. You could also work with renowned software manufacturers or distributors to get access to more goods and support services.

Provide Excellent Customer Support

Customer Support (1)

The third and most important tip is to offer excellent customer service to set yourself apart from others in the same field and gain customers' trust. Make sure you have knowledgeable employees who can answer users' inquiries before they buy, show them how to use the product, install it, fix problems, and provide help after the sale. They have to quickly fix any problems or concerns that customers have to keep a good image and get them to come back.

Stay Updated on Industry Trends

The fourth and final tip is to keep up with the latest software development trends, technologies, and new products. This means staying up to date on things like new software updates, new technologies, changes in users' needs and demands, and regulations that could affect your business. Staying ahead of the curve lets you see how the market is changing, find new possibilities, and make changes to your products and marketing strategies to take advantage of them. To do so, you could join blogs, webinars, industry forums, and tech and software development events to meet other professionals and share ideas and the best ways to do things.