Earn Recurring Revenue
SaaS and Cloud Apps are sold on a recurring revenue model allowing resellers and solution providers to earn commission each month, quarter or year depending on the App Vendor’s pricing plan. Most SaaSMAX App Vendors offer Solution Providers 20% or more commission as recurring revenue.
As an example, a Cloud App that sells for $20.00 per user per month would typically provide $4.00 per user per month in commissions to the reseller. Selling this solution to a 50 person company would earn you $2,400 in recurring revenue per year plus billable hours for implementation, customization and/or support.
Why Resellers Should be Reselling SaaS
According to Forrester Research, The SaaS Industry is one of the largest and fastest growing industries, currently a $21B industry and growing to $78B by 2015, with more than 10,000+ SaaS Apps and over 450,000+ solution providers and trusted advisors who resell SaaS and Cloud solutions to at least 12+ million U.S. businesses.
App vendors rely on solution providers to be the trusted advisor to help them introduce and support product sales to end user customers.
Cloud Apps Are Forcing Channel Changes*
Access to high speed internet, ability to access data anywhere and the adoption of tablet devices has created a big demand for Cloud and SaaS apps. This technology shift and industry change has created many near-term channel changes and concerns such as:
- App Vendors Selling Direct to Customers
The internet makes it easy for App Vendors to provision solutions for customers on the fly, but the reality is App Vendors need Solution Providers to introduce the product to end-users and work with them on the best way and best process to use Cloud and SaaS Apps.
- Sales Trump Engineering
Solution providers will still need to be engineers in the future, but not as many. Solution Providers need to emphasize on sales and solutions that generate cash flow including recurring revenue and billable hours for implementation, customization and support.
- Resellers Need Better Marketing
Many resellers and solution providers still lead with their vendor brands and reputation, that model is changing as customers are looking for solution providers with industry and vertical and app expertise to help them implement, customize and support their Cloud Apps and find ways to save them money on software licensing.
- Find the Best SaaS Solutions to Sell
The channel isn’t ignoring Cloud Apps. In fact, more than 90 percent of the channel has cloud offerings in their portfolios, but most of these are basic Apps are commodity Apps such as backup, email, productivity apps, storage. Businesses want advanced applications like support, licensing, customization, provisioning and management. Unfortunately, the vast majority of the channel doesn’t have the skills to represent, sell or manage these apps. The winners will have solutions that meet these needs.
- Improve Your Customer’s Operations
Customers want solutions to their operational challenges and tools that enable them to grow revenue. In other words, they want business enhancements, not just another server. Solution providers who can anticipate customers’ business needs and provide solutions that enable new lines of revenue will beat conventional resellers every time.
- Changes in Reseller Business Practices
Traditional resellers, for example Microsoft or Oracle resellers, typically have a product line they sell year over year. With thousands of Cloud Apps on the market today, resellers need to be smart about how they manage each App Vendor relationship including contracts, reseller terms, contracts, support and other processes.
*Information for this section provided by ChannelNomics, 10 Tough Truisms about the Channel’s Future, June 14th, 2012. Author: Larry Walsh
Growth & Demand for Cloud Apps
The growth and demand for Cloud Apps has created a big change in the Channel on how software solutions are delivered and how resellers and solution providers sell Cloud Apps.
SaaSMAX provides resellers and solution providers with the tools needed to easily track and manage ongoing commissions from leading Cloud and SaaS business apps:
- Online platform links you with leading Cloud Apps
- Great product margins
- One contract connects you with all Apps
Learn More > One Contract Is All You Need