Questions

We're a proximity marketing platform that leverages geofencing to deliver contextual offers and content to mobile users based on their current location. We have interest from agencies who want to partner/resell/integrate (API) for their clients. I'm interested to understand the typical business models in working with agencies as resellers.

There are three main models. Firstly, reciprocity, we recommend clients to your agency to partner with and the agency recommend clients back to buy your service. The value exchange needs to be equal, but when this works it usually forms the strongest of strategic partnerships. Secondly, there is a commission structure. The main challenge for this model is often an agency is developing tens or hundreds of thousands through their sales to clients yet the commissions from products are often only hundreds or thousands and whilst they provides a passive income, by themselves the commissions are not lucrative enough. Also it’s hard to remain front of mind with the Agency account or sales teams. The third model is created by creating a value added partner programme. Where on top of commissions, because the agency, has been trained and certified in your product they can also benefit from an introduction to new clients, from the partner product, where they can sell the their services on top of the commissions they make from integrating the partner. Most CMS, hosting or ecommerce vendors have these types of programs. Happy to pick up more details on these on a call.


Answered 6 years ago

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