6 {{ upvoteCount | shortNum }}
6 {{ upvoteCount | shortNum }}

Advice needed: how would resellers sell memberships to my web site?

by johanninelogos
5 replies
Hello,

I'm very new to marketing so if I am proposing something outlandishly stupid, go easy on me. However, I do have competitors that operate on a business model very similar to mine, and they allow for resellers in the same way I would like. I'm just not exactly sure how they do it.

Anyway, I run a membership site that allows members to watch training videos for a piece of software. Currently, my customers purchase the membership through my web site using PayPal. There are a lot of companies out there that sell the software I provide training for, so I hope to contact them in the future and see if they'd be interested in reselling memberships to my site. Let's say that a membership is $500/year and I am giving the reseller 30% of the sale.

My question is, how would resellers resell memberships to my web site?

Should the customer who discovered my product through the reseller's marketing efforts pay the 500 directly to me and then I pay the reseller? How then could the reseller trust that I would give them the 30% if the customer bought the product?

Or should the customer pay the reseller, who then pays me 500 * 0.7 to add that customer as a paying member?

Another set of questions I have: what is the incentive for the customer to buy the membership through the reseller and not through me? After all, the reseller will point the customer to my web site. Perhaps he'll think, "Ah, this guy offers the same price if I just buy it directly from him, then I don't have to mess with the middleman." So am I to say that a customer can get a lower price if they buy it through the reseller? Can anyone think of an incentive that doesn't involve lowering the price?

For anti-piracy reasons I am not offering my product in hard-copy; the videos must be viewed through my web site. So simply giving the reseller some inventory so my web site isn't involved is not an option.

A final question: how different is this form of reselling from affiliate marketing? Is any kind of reseller model considered a type of affiliate marketing?

Your advice is appreciated.
#advice #memberships #needed #resellers #sell #site #web
  • Profile picture of the author JimWaller
    Some if not most membership programs allow for affiliate sales. Some split the sale automatically while others rely on the site owner to do the splitting. without knowing what software your membership site is based on, it's hard to give you an accurate reply.

    Jim
    Signature
    Are you in the Orlando area? Join our mastermind group

    {{ DiscussionBoard.errors[6083895].message }}
    • Profile picture of the author tacone
      Reseller and affiliate are fairly synonymous i.e. they both rely on someone selling your product for you. As for commissions - the easier the better. Since yours is high priced people would be more inclined to sell it for instant gratification - in other words instant commissions. A $500 item which pays you $150 in commissions instantly will be sold more actively then a $500 item that promises to pay you commissions next month. After you get established in sales, then convert to a monthly pay module.
      Signature

      Mike S.

      opt-in email advertising

      {{ DiscussionBoard.errors[6085391].message }}
    • Profile picture of the author johanninelogos
      Originally Posted by JimWaller View Post

      Some if not most membership programs allow for affiliate sales. Some split the sale automatically while others rely on the site owner to do the splitting. without knowing what software your membership site is based on, it's hard to give you an accurate reply.

      Jim
      Jim,

      I'm in the 3D CAD industry. Reselling is the name of the game for the CAD software itself, add-ins for that software, and training materials for that software. Hopefully that is enough information for you.

      Thanks everyone for your replies. Sounds like the reseller is to trust that I will give them their portion? Is that typically how affiliate marketing works, or is there usually some security in place so that the reseller knows he is getting the money he is due?

      Thanks.
      {{ DiscussionBoard.errors[6085889].message }}
      • Profile picture of the author JimWaller
        Originally Posted by johanninelogos View Post

        ...I'm in the 3D CAD industry... Hopefully that is enough information for you...
        Sounds like the reseller is to trust that I will give them their portion? Is that typically how affiliate marketing works, or is there usually some security in place so that the reseller knows he is getting the money he is due?
        johanninelogos,
        When I was asking about the software your site is based on, I meant how do you run your affiliate/ reseller program. There are membership site programs out there that will handle most of the hard work for you, allowing you to decide what percentage goes to whom, and when. At the same time, there are others that don't have that functionality.
        There are also plugins for WordPress that will do what you're talking about.

        One of the many examples out there of a membership program would be Easy Member Pro while an example of WordPress plugins are Magic Members and Magic Affiliate which work together to do what you are talking about.

        These are just examples for you to see what I'm talking about. There are many others out there, and there is probably a thread about which membership site program is best elsewhere in the WF.

        As far as securities in place to ensure affiliates get paid, the strongest one is your reputation. If you are slow paying or don't pay, you'll get a bad reputation and people won't want to promote your product.

        Affiliates do have to put a lot of trust in you, but you also have to put a lot of trust in them that they will not misrepresent your product. Treat your affiliates like gold, and you will receive the same from them.

        I hope this helps,

        Jim
        Signature
        Are you in the Orlando area? Join our mastermind group

        {{ DiscussionBoard.errors[6090437].message }}
  • Profile picture of the author dodadder
    Hi Johanninelogos,

    You will actually pay the resellers yourself. Now this can be an issue. Most resellers will be concerned about dealing directly with a vendor like yourself because there is no buffer between you and the reseller to guarantee payments such as Clickbank. Unless you're reputable many may not deal directly with product owners.

    As far as lowering price, you don't. If a customer goes directly to your website and makes a purchase you should get the whole amount. If a reseller leads them to your website they should get their 30% for the sale.

    As for your last question there is no difference, this is a form of Affiliate marketing.

    Hope this helps.

    Dodadder
    {{ DiscussionBoard.errors[6085519].message }}

Trending Topics