Why aren't we a reseller of ... ?
A question we’re regularly asked, and one that we ask ourselves with some regularity is: Why aren’t you a reseller?
When a business is a reseller of an online service, cloud service, hardware, software, or even connectivity, it is frequently able to enjoy a number of benefits like these:
Discounted, wholesale like pricing on items, services, etc.
Recurring revenue streams from a portion of subscription, monthly or annual fees.
Marketing materials, newsletter articles, and the ability to use logos and trademarks.
Access to and information about product development roadmaps and future releases
The amount of recurring revenue can be significant - in some cases as much as 10% or 20% of monthly payments made by customers.
Resellers Can Enjoy Recurring Revenue
When one is a reseller, especially with a reseller arrangement that includes recurring revenue: one need not always charge clients for the work involved in determining needs, documenting choices, or installing a service if you are getting 20% of the monthly fee for a service that could have a term of 1, 2, or 3 years.
Let’s say we are talking about an internet connection. Let’s say the cost for the service is $100 per month. Let’s say that there’s an original $250 finder’s fee, and then 15% of each monthly invoice. If the service is signed for a two year term - suddenly that sale is worth $610. In most cases the actual provider provides tech support for the service so there’s little downside for the reseller.
If you couple the reseller arrangement with other maintenance, service or management fees with a customer - the business model gets very powerful as the number of clients increases.
So why don't we "resell"?
So all that being said. Why doesn’t Campbell Tech Solutions pursue this model? Why is Campbell Tech Solutions forgoing this additional revenue stream?
It’s simple really - we made a choice not to be a reseller of particular software, hardware, license, carriers or connectivity providers. We’ve made that choice because we don’t want to fall into the trap that goes something like this:
You need something built or you are having a problem.
We sell hammers.
Whatever you need is going to require hammers.
Seeking Clarity of Mission
We do this because we want absolutely no confusion, either with our clients or with our staff -- When we suggest a solution to a client, we want to be sure we pick based on what is best for the client, not some reseller relationship.
We want it clear - we are on your side, we are acting as your advocate, and we are not getting any remuneration from sellers nor are we getting revenue through reselling/wholesaling.
We are your consultants, your trusted concierge who wants to help you navigate the forest of information tech choices, offerings, and services.
One way we do that: we do not cloud our priorities by being a reseller.
Cover Photo by Aris Sfakianakis on Unsplash