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Growing business: the advantages of being a Reseller

17 de mayo de 2021

Autor: Antonio Alatorre, Chief Technology Officer /Advanced Tech Consultant

In this space I want to tell you a little about the figure of the Reseller. This figure has had different expressions in the last decades, for example: commercial ally, external representative, independent consultant, partner and now "reseller".

This way of working has elements in common with those of a broker or independent negotiator. Perhaps 30-40 years ago, this figure might have been frowned upon. Reselling services or products pointed to a malicious and abusive attempt to profit from someone else's business. Today, our view of the market has changed radically.

Win-win business model

Today, business collaboration is indispensable Many of the great businesses and strategic alliances are achieved under collaboration schemes such as this one. Of course there are different levels of cooperation as well as commitment, however the scheme works.

On the one hand, resellers take advantage of the products and pre-existing infrastructure of officially constituted companies and on the other hand, the reseller becomes a powerful sales and distribution channel without generating operating costs or formal labor relations. In fact, a large number of companies around the world and in Latin America operate with a model designed especially to work almost exclusively with resellers.

The complexity of the reseller-primary company collaboration can vary greatly. The characteristics of their relationship depend on many factors. From the size of the incubator company itself, to the scope of the network of contacts of these external collaborators.

On the other hand, the benefit is positive for both parties. Here again, the famous "win-win" principle applies, in which both parties benefit. The commercial guerrilla warfare that resellers engage in can bring results in market sectors and environments that the entire company would not be able to reach.

From an institutional point of view, the advantages of a solid company with a track record makes it easier to generate business from an independent reseller who cannot demonstrate a broad portfolio of clients and projects for corporate trust purposes. In this way both parties complement each other.

How to make it a best practice?

An excellent practice is for companies that require resellers to offer a work package to their external representatives with product information and even, in some cases, white labeling.

The more commercial tools they can have, the more efficient the sales process will be and therefore the commercial success of each business opportunity.

In addition, companies should offer training facilities to their resellers, and nurture their relationship with them, as with any other customer, finally they would take the place of immediate customers by being intermediaries between the company and the end user.

The reseller scheme is novel and very functional. Especially when it comes to the promotion of technological and infrastructure services in telecommunications & IT. The use of remote collaboration tools and organizational capacity in the cloud is a very positive factor for the creation of new business beyond physical barriers and communication obstacles.

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