affiliate vs. reseller

Dave · #1 (**permalink**) 04-03-2008, 03:55 PM

What is the difference between being an affiliate and a reseller for web hosting?
Advantages / disadvantages of one or the other?

lisa · #2 (**permalink**) 04-03-2008, 09:11 PM

Usually affiliate programs only pay you a one time commission and the programs are free to join. As a reseller, you are buying the products at wholesale and then reselling them at your own price so determine your own profit margin.

And in the case of reselling domains and web hosting, you continue to earn commissions on customers' repeat purchases for life. So while affiliate programs are free, you can earn a lot more in the long-run as a reseller.

Of course there are exceptions but that's generally how they work.

CSSadmin · #3 (**permalink**) 04-04-2008, 12:07 AM

also for hosting, as the reseller you are the one with the relationship with the client, whereas with affiliate, you often have no idea who the client was. they just sign up off your link, and your job is done, you get the commission, and everything else is then handled by the company your an affiliate for. There is also a lot more responsibility as a reseller. You are the one that the client comes to when there is a customer support issue. It is for people who are committed to that particular calling. Affiliate programs or even websites, people can just walk away from, but when you have customers of your own who depend upon you, you cannot just walk away. Becoming a reseller for web hosting is a lot like getting married, whereas being affiliate is more like dating, but not always seriously. you can jump around as you like and jump ship whenever you want to.

nixwebo · #4 (**permalink**) 04-04-2008, 01:52 AM

Quote:

Originally Posted by CSSadmin

Becoming a reseller for web hosting is a lot like getting married, whereas being affiliate is more like dating, but not always seriously. you can jump around as you like and jump ship whenever you want to.

LOL...Hilarious, but very true.

Nice analogy.

lisa · #5 (**permalink**) 04-04-2008, 08:48 AM

Very good point CSSAdmin. Even though my company handles most of the support, I do get emails from time to time. But it's definitely worth the small amount of work for the payout. Here's an example here...

http://www.websitebabble.com/new-mem...help-lisa.html

I offer free things for anyone who buys from my reseller store. Some people forget to pick it up from their confirmation page so they email me for help.
Again, when you are building your own customers this is a responsibility you may have. Now I didn't have to offer the freebies, but I do so to make my reseller store more appealing.

So yes, a reseller definitely requires that you have more responsibility and you play a bigger role for sure.

Lajocar · #6 (**permalink**) 04-04-2008, 10:01 AM

Thanks guys for your explaination on affiliate vs reseller.

I learned something and will definitely try it out as another revenue stream.

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