Becoming a Reseller versus Affiliate Sales: The Business Models
A digital reseller purchases the rights to a program or eBook to resell. The rights purchased vary; but, in general, he will purchase the right to sell the digital property as his own and keep all of the profit. Reselling digital property is a good way to get started in an internet business. It is quick to start and highly profitable.
Affiliate marketing is another popular way to get started in an internet-based business. An affiliate marketer simply promotes products owned and managed by another company or individual. Affiliates receive a percentage of the sales price for driving customers to the sales offer. This percentage can be as low as 1 or 2 % or as high as 100%. For digital products the usual percentage is in the 40 to 75% range. Physical products pay much lower commissions.
The difference between the reseller versus affiliate sales model is that the reseller has control of his product and his sales process. The affiliate marketer controls only the traffic. The affiliate marketer can change the commission or the product without notice, leaving you frustrated with less profit and no control. By purchasing resell products and taking the time to set up your own sales funnel, you are in total control.
What are the Advantages of Reseller versus Affiliate Sales?
Resellers have more rights than affiliates and can better control the sales process to their advantage. Affiliates do not have access to the customer list. They sell a product to the customer, then move on to sell to the next customer. Basically, affiliates drive traffic to the merchant, who then is in total control.
Resellers know that the customer list is very valuable. If your products are high quality, customers will want to buy from you again. For this reason alone, it is better to be a reseller versus affiliate.
Another advantage of the reseller versus affiliate is that the reseller has total control of the sales process and profits. He can keep 100% of the profit, or he can set up his own affiliate program and have an army of affiliates selling for him. There is a little more work in setting up the business, but you only have to do it once for each resell rights product, then you are in control. If you are an affiliate, you are working for someone else.