The idea of becoming a reseller is appealing to many people looking for a reliable second income or even a new career. Companies benefit from the sales efforts of resellers without the need to provide a salary and benefit package. Resellers enjoy the privilege of leaving employment woes behind and creating a job situation that puts them in charge of how much money they can make. In most cases, the process to become a reseller involves a few basic steps: identifying the right opportunity, becoming proficient with the products and services, and negotiating the best commission or buy rate possible.
As more companies create reselling programs to supplement or even lead their sales efforts, the number of opportunities to become a reseller have increased significantly in many industries. The options range from reselling telecommunications services such as long distance, Internet access, and teleconferencing options to reselling goods like candles, home cleaning products, and electronics.
To identify the right type of reselling program for you, it is important to draw upon your background to inspiration. Are you proficient with online applications such as virtual meetings? Reselling web and video conferencing may be ideal for you. Perhaps you know a great deal about using natural elements to clean the home. Becoming a reseller for a line of “green” home cleaning products may be a great fit. By taking into consideration your knowledge, skills, and hobbies, it is possible to focus on reseller options that will provide you with a steady source of income as well as provide a great deal of personal satisfaction.
Along with finding the right opportunity, it is a crucial to become a reseller of goods or services that you can understand thoroughly. The ability to evaluate the needs of a customer and identify specific applications that will be of special interest to the client will greatly increase the chances of making a sale. This means you must believe in what you sell and honestly believe that what you have to offer is of value to the customer and will make their lives easier.
Once you have identified reseller opportunities that are a good fit for your skills and that you can sell with full confidence, you will want to go for the best compensation package that you can command. When you become a reseller, your income is dependent on your sales volume. If you are able to earn a higher rate per unit sold, your chances of establishing an attractive revenue stream increases significantly.
Companies normally compensate resellers in one of two ways. The first is known as a buy rate. Essentially, the vendor sets a wholesale price for the goods or services you sell. You, in turn, set the retail price that the customer will pay for those goods and services. By obtaining the lowest buy rate possible, you maximize the amount you will earn per unit sold. The lower buy rate also allows you some flexibility in setting retail pricing and being competitive in your market.
The second compensation model for people who want to become a reseller is the percentage approach. The vendor sets the retail price per unit and compensates you with a fixed percentage off each unit sold. With this model, the goal is to negotiate the highest percentage possible. If two different companies offer products of comparable quality and price, chances are you would benefit from signing with the vendor who offers a ten percent commission rather than seven percent.
The actual application process for becoming a reseller is somewhat like applying for many types of employment. Vendor partners will normally require you to meet some type of basic criteria in order to be eligible for acceptance into the reseller program. In some cases, you may need to commit some type of resources on the front end. However, many programs today do not require spending anything in order to become a reseller. Once you are accepted into the program, there may be some minimal sales you must generate in order to retain your status. Make sure you read all the terms and conditions before committing to anything.
