When one person begins to sell a product, he or she may make a profit. When many more people sell that same product, bringing their selling styles, marketing tactics, and connections, the profits begin to pile up massively. Using the tips below, learn how to use this idea to create a re-seller network and begin to rack up profit exponentially, just by knowing a [few] guy(s).
Know the difference between re-sellers and affiliates. Affiliate marketing relies on a business rewarding affiliates for each customer that enters their business, but re-sellers simply re-distribute your product and are paid on an item-by-item basis or else on a commission basis.
For some products, affiliate marketing is much more beneficial than creating a re-seller market may be. Consider both options when deciding on a marketing strategy for yourself.Consider aggregating all of your re-seller account information into a website, database, or spreadsheet, depending on the size of your business and the amount of re-sellers you have.Consider which sort of items you should set aside for re-sellers. Some items, like a program software, may be easier for a re-seller to distribute than an entire operating system, because the wealth of knowledge on that subject comes from the originator of the product. Unless you train your re-sellers diligently and make sure they know their information, selling simpler products may be a better plan for you.
Consider how much you should charge your re-sellers compared to the retail cost of the product. Paying a flat fee per item sold may be a good plan, or pay a percentage; it all depends on what will maximize profit for both parties while also keeping them both happy.
Consider if just-in-time fulfillment is right for your business, or if you need a more drawn out, careful plan that is easier to be relied upon. This decision relies heavily on preferences of both yourself, the re-sellers, and, in part, your customers.
If a re-seller should tarnish the image of your brand, warn them or end their contracts immediately. The image that follows your brand is very important, particularly as you are just beginning and any additional difficulties placed on your brand may be very harmful to your brands future and can possibly even sink your business.
Be sure to maintain very good relationships with both your re-sellers and customers. Good relationship with re-sellers will allow you to sell to more people. Having a poor relationship with your re-sellers may be result in you having lower sales, because your re-sellers dislike you and therefore your business suffers as a result. Reward your re-sellers for a job well-done, like you would with any of your other employees.
Taking the time out of your day to build a strong re-seller network for your successful product is the best and most sure-fire way to improve its profitability, increase the money you make, and attract new customers that, alone, you never would have been able to dream of reaching.