What Is a SaaS Reseller?

A SaaS reseller is a person or business that offers software-as-a-service solutions created by other companies to customers. Resellers may also be involved in activities such as customer support, optimization, or bundled services. 

This approach is a method for engaging with the software market using available products. In this type of arrangement, resellers can see regular payments and recurring revenue, and vendors make their software available through different partner networks.

Under the SaaS reseller business model, a partner (the reseller) acquires software from a vendor (usually at a negotiated cost) and then makes it available to customers, either as a standalone offering or integrated into a suite of services. Typical sources of revenue for resellers are:

• Margins earned from differences between vendor pricing and customer pricing.
• Service fees associated with such activities as onboarding or operational assistance.
• Recurring commissions – a percentage of the customer’s subscription revenue over time.

SaaS reselling (in contrast to traditional reselling) relies on subscription-based events; this makes the revenue flow in continuous cycles rather than one-time transactions.

SaaS reseller programs can be organized in several formats, each describing the relationship between the reseller, vendor, and customer. Major types include:

• White-label reselling — The reseller offers the software under their business branding. In this case, clients primarily interact with the reseller and may not be aware that the original vendor exists.
• Value-Added Reseller (VAR) — The reseller combines the core software with additional features such as configuration, integrations, or consulting services, modifying the solution according to customer needs.
• Managed Service Provider (MSP) — The reseller is responsible for ongoing software operation, maintenance, and client-related support.
• Fulfilment reseller — The reseller’s function centers around product distribution, while the main after-sales service remains the vendor’s responsibility.
• Affiliate reseller — The reseller directs prospective customers to the vendor’s platform and receives a commission for each qualified referral.

Each approach matches a particular operational scenario for a business. VARs and MSPs typically price their offerings with consideration for the services they provide in addition to software licensing or referrals.

Here is the step-by-step process of becoming a SaaS reseller:

1. Identify your niche
   This is the most important step of the process. You must find a target client group or a market sector that fits your area of expertise. You should choose products that meet the needs of the client, i.e., a marketing agency could sell email automation software.
2. Find the Right Vendor
   You need to study the vendor programs and compare the margins, the type of support, the available materials, training, and the contracts.
3. Get Certified
   Complete the application. The vendor will provide the training and certification of the resellers. You may also be required to complete a knowledge check or sales preparedness check prior to approval.
4. Outline your go-to-market plan
   This covers key points such as position, market approach, price structure, and various methods for reaching relevant customers.
5. Launch and iterate
   Use feedback from an initial group of customers to guide any adjustments and next steps in your strategy.

Benefits of becoming a SaaS reseller include:

• Recurring revenue — Subscription renewals make monthly or annual income predictable.
• Low upfront investment — Entry into programs often involves completing standard registration steps and minimal resource allocation with no product development or R&D costs.
• Time to market — Selling vendor-provided software usually involves fewer steps than building from scratch.
• Vendor support — Providers deliver manuals, marketing materials, and technical resources such as official documentation for participant use.
• Scalability — Working on additional software or expanding customer focus doesn’t require reinventing your business model.

SaaS resellers engage with a range of business and operational elements, often addressed as follows: