Article · 12 min read

How to Determine Your Reseller Margins, for SaaS, VARs, Retail

Chanimal Free Intermediate

Written by people who have built channel programmes for decades, and it asks the questions nobody thinks of first: who collects the money, does the margin change at renewal, and have you actually tested your bands with a real reseller before publishing them.

  • Software affiliate margins usually run 10 to 15 percent, with aggressive competitors going 30 to 50.
  • Maintenance fees average 10 to 25 percent of licence, with 20 percent the most common number.
  • A workable tier ladder is 10 percent affiliate, 20 authorized, 30 gold, 40 platinum.
  • Watch payout timing: paying commissions 30 days after quarter end means a partner waits about four months for the money.
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The question it answers

  1. A reseller wants to carry us. How do I build a price book for partners without my own sales team undercutting them?

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