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--- business:muftasoft:jobs:sales_agent [2024/02/26 19:43] – wikiadmin
+++ business:muftasoft:jobs:sales_agent [2024/02/26 20:50] (current) – [Commission Rates in Software Reselling] wikiadmin
@@ Line 144: / Line 144: @@
 ====== Commission Rates in Software Reselling ======
+Commissions rates depend on many factors.
-[[https://www.linkedin.com/pulse/commission-rates-software-reselling-yossi-katsavi/|
-Commission Rates in Software Reselling]]
-Commission Rates in Software Reselling
-Yossi Katsavi
-Yossi Katsavi
-Brigex - Channel partner finding services
-articles
-Follow
-April 19, 2023
-What are the fair commission rates in software reselling?
-If you are a software vendor, you probably mulled over the rates you should be offering to your prospective resellers. Alternatively, if you are a software reseller/distributor, you probably bargained more than once on commissions.
-Well, like anything else, software reseller commission rates depend on several factors.
-So, what determines the commission rates:
-Involvement
+**Involvement**
-Most software vendors offer commission rates to their channel partners depending on the level of involvement.
+Many software vendors offer commission rates to their channel partners depending on the level of involvement.
 Most typically, 3 compensation plans are offered
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 The total margin for the distributor (including the sub-reseller margin) starts from 45% and can go up to 55%.
-Efforts Required for Selling the Products
+**Efforts Required for Selling the Products**
 Some products are easy to sell and some are more difficult.
@@ Line 192: / Line 177: @@
 If the product is niche or not. A product introducing a new concept is more difficult to sell initially, however once accepted, the product's selling potential will be high in the absence of competition.
-The Vendor's Implementation Cost
+**The Vendor's Implementation Cost**
-Mostly, high-value business software products (such as ERP) will involve an implementation effort in each sale.
+For our cloud based, Software as a Services based offerings, the vendor does not have to do much in terms of implementation costs. They just need to make the accounts and provide the accounts to the customer's users.
+On Site or On premises installations shall require the acquisition of hardware, having the software setup. The software shall be setup by the supplier in coordination with the vendor. The vendor shall need to setup the basic OS and provide access to the software supplier. Then the vendor shall provide the access to the user to the machine. The machine can be setup in the vendor's premises or at the customer's premises based on whatever is suitable to the case.
+Mostly, high-value business software products (such as CRM) will involve an implementation effort in each sale.
+Our systems are mostly web based so they can be offered in the Software as a Service and also on premises model. There can also be a hybrid where some of the admin tasks on premises are managed by the software supplier.
 In such cases, the total sales revenue consists of the license cost and implementation service.
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 Some vendors provide their resellers with the tools for accomplishing the implementation work. In such cases, the share of the implementation in the transaction will be insignificant.
-Sales Volume
+**Sales Volume**
 In order to motivate their resellers, some vendors offer a progressive commission structure.
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+====== Commission-Based Sales Agreement ======
 Below is an example template that can be used as a starting point for creating such an agreement. Keep in mind that legal requirements and specific details may vary based on your jurisdiction and the nature of your business. It's advisable to consult with legal professionals when drafting such agreements.