The truth is, most technology professionals that want to resell
software and other products solely in the small business space can’t
expect to see very high, if any profit margins. This is why, if you
want to make product reselling a part of your business, you need to
think of other services you can provide to your valued clients. This
might include on-going service agreements that will have you working
with small business clients on a steady basis and bringing them real,
total business solutions they can’t live without.

Here are 3 ways for you to learn how to become a software reseller
successfully and profitably by building up the value proposition that
you provide to your clients.

1. Create Sound Pricing Strategies. Make sure
you set your prices for both products and services high enough to put
you in line with other high-end technology professionals in your
area... and even more importantly, so that your business is profitable
enough to survive and thrive. You can’t sell yourself short or give
away the store by charging rock-bottom prices. While low prices might
attract the attention of some penny-pinching small business owners,
this short-sighted positioning strategy will not attract the attention
of the right kinds of long-term-focused small business owners. If you
don’t set your rates and prices right from the beginning, you will find
yourself with a client list full of cheapskates and deadbeats --
essentially those that really don’t appreciate or understand the value
of your comprehensive IT solutions. Also bear in mind that if you set
your prices and rates wrong at the beginning, you will find the process
of changing your prices and rates nearly impossible, which means you'll
basically have to dump your client list and start over. So make sure
you create sound, sustainable, and profitable pricing strategies right
from the start.

2. Leverage On-Going Service Agreements. In
order to learn how to become a software reseller profitably, you really
need to leverage your long-term client relationships and make sure
those relationships lead to on-going service agreements. These
agreements give you predictability and financial security for your
business and your family, so you don’t have to torture yourself every
month with “feast or famine” and jeopardize the long-term survival of
your business. If you are too stubborn to implement service agreements,
you'd better scale very large very fast (8-figure annual sales or more)
or you will go out of business sooner rather than later ... really! So
don't procrastinate. You need clients on long-term service agreements.

3. Get Your Prospects and Customers to Commit to On-Going Service Agreements.
If you want to know how to become a software reseller successfully in
the small business space, you need to set a goal of getting the
overwhelming majority of your clients on long-term service agreements.
This means you need to get rid of those prospects and customers that
are on the fence or just want to cherry-pick you. If you have a lot of
customers that only call you every once in a while or just rely on you
for low-margin software and other products every few years, you need to
really up the ante on your business model. Reselling can be a valuable
part of your overall service offering, but you can’t survive without
on-going commitments from your clients to provide them with regular
services that they pay for on a monthly, recurring basis.