I have a SAAS product with monthly subscription of $300 per user. I'm thinking of working with resellers where we split the annual contract value with them. We give $75 per user to the underlying platform provider. I am thinking of splitting the rest of $225 such that they get to keep a portion of our contract. Perhaps they could keep $50 per user. What are your thoughts on this arrangement? Will it work? The reseller gets ACV, and we get a portion of the revenue.

This can be a solid approach. I would recommend that the reseller and platform provider get similar deals, to keep consistency.

There are many platforms out that there allow for affiliated links and vendors that can sell your software as well, I suggest you take a look at this as an option as well.

Ensure that you have a reasonable profit margin as part of the incentive process as there could be additional time commitments, extra costs, etc. that come up as part of implementation.

Answered 2 years ago

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