Reseller Program vs. Affiliate Program: Key Differences

Learn the key differences between Reseller and Affiliate Programs. Discover which program is best suited for your business and how to maximize your profits.
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By Nick Cotter
Updated Jan 10, 2024

Reseller Program vs. Affiliate Program: Key Differences
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If you're looking to promote your products or services to a wider audience, you may be considering partnering with other businesses or individuals. There are several different types of partnerships that you can pursue, including affiliate partner programs and reseller partner programs. But what's the difference between the two, and which one is right for your business?

In this article, we will take a closer look at affiliate partner programs and reseller partner programs, and discuss the pros and cons of each. By the end, you will have a better understanding of which one is right for your business and how to get started.

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Overview of Reseller Programs.

What is a reseller partner?

A reseller partner is a person or business that sells a company's products or services to their own customers. In a reseller partner program, the reseller partner is typically given access to the company's products at a discounted price, and can then mark up the price and sell the products to their own customers.

This is a popular way for businesses to expand their reach and generate more sales, and for reseller partners to earn money by selling products and services they believe in. Reseller partners are typically motivated by the potential to earn money through the markup on the products they sell, and may be individuals, retailers, or other businesses.

What types of companies use reseller partner programs?

Many different types of companies use reseller partner programs, including:

  • Software and technology companies: These companies may offer channel reseller partner programs to retailers, who can then sell the company's products to their own customers.
  • Wholesale distributors: These companies may offer reseller partner programs to retailers or other businesses, who can then sell the company's products to their own customers.
  • Manufacturers: These companies may offer reseller partner programs to retailers or other businesses, who can then sell the company's products to their own customers.
  • Service providers: These companies may offer reseller partner programs to individuals or businesses, who can then sell the company's services to their own customers.

Overall, any company that has a product or service that can be sold to other businesses or individuals can potentially benefit from a reseller partner program.

How does a reseller make money?

A reseller typically makes money by marking up the price of the products or services they sell. In a reseller partner program, the reseller is typically given access to the company's products at a discounted price, and can then mark up the price and sell the products to their own customers. The difference between the discounted price and the marked-up price is the profit that the reseller makes on each sale. 

For example, if a company offers a product to a reseller at a discount of 20%, and the reseller sells the product to their own customer for a price that is 30% higher than the original price, the reseller will earn a profit of 10% on each sale. This is a popular way for businesses to expand their reach and generate more sales, and for resellers to earn money by selling products and services they believe in.

Overview of Affiliate Partner Programs.

What is an affiliate partner?

Affiliate partners are individuals or companies that have a business relationship with another company and earn a commission for promoting that company's products or services. This is often done by including a special link on the affiliate partner's website that allows them to track any sales that are generated through that link. 

When a customer clicks on the link and makes a purchase, the affiliate partner earns a commission on the sale. Affiliate partners are typically paid on a performance basis, meaning that they only earn a commission if they are successful in generating a sale.

How do you find affiliate marketing partners?

There are several ways to find affiliate marketing partners. One way is to search online for companies that offer affiliate programs in your industry or niche. Many companies will have information on their website about their affiliate program, including how to apply and what the terms of the program are. 

Another way to find affiliate partners is to attend industry events or conferences and network with other businesses in your field. This can provide an opportunity to learn about potential affiliate partners and discuss potential partnerships. Additionally, joining industry-specific forums or online communities can be a good way to connect with potential affiliate partners and learn about opportunities in your field.

Key Differences Between Reseller Partnerships and Affiliate Partnership Programs.

Here are some key differences between reseller partnerships and affiliate partnership programs:

  • In a reseller partnership, the partner typically has a greater level of control over the sale of the company's products, as they are responsible for directly selling the products to customers.
  • In an affiliate partnership program, the partner has less control over the sale of the company's products and typically only earns a commission for promoting the products.
  • In a reseller partnership, the partner may purchase the products from the company at a wholesale price and then resell them to customers at a higher price.
  • In an affiliate partnership program, the partner typically does not purchase or sell the products directly to customers. Instead, they earn a commission on any sales that are generated through a special link on their website.
  • In a reseller partnership, the partner may be responsible for providing customer support and handling any returns or refunds.
  • In an affiliate partnership program, the company typically handles customer support and any returns or refunds, and the affiliate partner only earns a commission on successful sales.

One example of a successful reseller partnership is the relationship between Apple and Best Buy. Best Buy is a major electronics retailer that sells a wide range of products, including Apple products such as iPhones, iPads, and Mac computers.

As a reseller partner, Best Buy purchases these products from Apple at a wholesale price and then sells them to customers at a higher price. This partnership has been successful for both companies, as it allows Apple to reach a wider customer base through Best Buy's physical stores and online marketplace, and it allows Best Buy to offer a popular and in-demand product to its customers.

Wrapping it all up

In conclusion, affiliate partner and reseller partner programs are two different types of business relationships that companies can have with other businesses or individuals. Affiliate partner programs involve less direct control over the sale of the company's products and typically only involve the partner earning a commission for promoting the products. 

In contrast, reseller partner programs involve the partner having a greater level of control over the sale of the company's products, as they are responsible for directly selling the products to customers. Both types of partnerships can be successful for companies, depending on their business goals and the type of products or services they offer. It is important for companies to carefully consider the benefits and drawbacks of each type of partnership before deciding which one is the best fit for their business.

Nick Cotter

Nick Cotter

Founder & CEO
Growann

With over 7 years navigating the intricate realms of marketing, and specifically B2B partner marketing, Nick has forged collaborations with top-tier tech brands, prominent agencies, and some of the industry's foremost B2B publishers and content creators. His deep immersion in both marketing landscapes showcases a trajectory of expertise and innovation. Identifying a significant void in specialized resources, he founded Growann.The aspiration? Deliver unparalleled insights and guidance, carving out a dedicated space where the broader marketing and B2B partner marketing communities can flourish.