The cloud has become a crucial component of virtually every technology stack in recent years. Studies show that since 2021, around 94% of organizations have adopted at least one cloud service, from storage solutions to innovative tools for customer service.
Perhaps the most valuable cloud solutions available today are those that empower companies to enhance their communication stack, with scalable, agile, and omnichannel capabilities. UCaaS and CcaaS platforms are growing at a phenomenal rate, particularly in a world where businesses need to accommodate flexible hybrid and remote working strategies.
For partners and resellers, this represents an incredible opportunity to capture a huge variety of consumers, from a range of industries, all looking to innovate and evolve.
The question is how can these organizations deliver cloud innovation, without compromising on the ownership of their loyal customer base?
Choosing the Right Model for Selling Cloud Services
Countless technology partners and resellers have learned that embracing the cloud is crucial to retaining their value in the eyes of today’s modern customers. However, not every company knows where to begin their journey into the cloud.
In the past, many companies have adopted a “direct agent model”, which involves simply selling the solutions offered by other major vendors to their clients, with no opportunities for branding or customization. This model, though simple, features several drawbacks, including the requirement to pass ownership of the customer relationship over to another party.
At the same time, the direct agent model requires businesses to rely on commissions for their income, making it difficult to unlock significant growth. However, there are alternatives to consider.
Companies can now work with cloud vendors in a range of different formats, adopting the role of “business advisor”, private label reseller, or co-branded reseller.
The Advantage of the Reseller Model
The reseller model for delivering cloud services allows companies to sell innovative technologies, without changing how they run their business, or compromising on customer ownership. There are various benefits to this strategy, starting with an opportunity for additional revenue growth.
Resellers can earn consistent, monthly recurring revenue, rather than relying on a commission-based revenue stream. Some studies show that top-line MRR creates around 15 times more business value for partners and allows for five times faster growth.
At the same time, reseller models give organizations more freedom over how they navigate their relationships with customers. In a co-branded model, or a private label model, resellers preserve comprehensive control over the entire customer relationship, managing everything from bundling and customization, to billing, support, and even closing deals.
How to Sell Cloud Services (the Right Way)
As the market for cloud communications continues to expand at an incredible rate, partners have a fantastic opportunity to take advantage of this trend and build their revenue. However, choosing the right approach is crucial to success.
Here are some of the key steps involved in optimizing your reseller model.
Step 1: Define your Desired Offering
Cloud communications solutions can come in a range of formats, from cloud-based collaboration and unified communication tools to scalable contact centers. Based on your target audience, consider which types of services you want to deliver with the help of the right partner.
One excellent way to increase your revenue potential is to look for a solution that allows you to combine UCaaS and CCaaS systems into an all-in-one solution for your customers. And with the advancement of artificial intelligence (AI), integration of these capabilities within cloud communications is also revolutionizing business operations and consumer experiences. By leveraging AI, organizations can drive innovation, efficiency, and revenue growth through enhanced customer experiences, predictive analytics, and streamlined operations.
Combining UCaaS and Contact Center as a Service CCaaS within a comprehensive cloud ecosystem further amplifies these benefits, offering seamless communication channels and operational optimization. Embracing AI today while planning for future advancements ensures businesses remain agile and competitive in an ever-evolving landscape, positioning them for sustained success.
Step 2: Prioritize Personalization
As a direct agent, resellers have limited control over how they can deliver services and solutions to their target audience. However, with a reseller model, there’s more freedom to customize the packages you offer according to the specific needs of your customers.
You can choose how to bundle products and services, offering opportunities to a range of different businesses, with specific needs for integrations, hardware, and value-added services. You can also maintain comprehensive control over the level of support offered to each client. Delivering higher levels of support to customers can be a significant differentiator, benefiting the customer, their customers, and of course the solution provider.
Step 3: Select your Ideal Model
While all reseller models give partners more control over the customer experience, and the services they deliver to their customers, there are different options available. The right model for your business will depend on a variety of factors, from how much support you need from your vendor, to how much you want to “white label” or brand your solution.
With both a co-branded and private label model, you own the relationship with your customer, close the deals (with help from provided vendor resources), and set the price of products, controlling your margins.
However, with a private label model, you focus entirely on showcasing your own brand and increasing your brand equity. Alternatively, with a co-branded model, you share your branding with another pre-established business.
Step 4: Find a Trustworthy Partner
Finally, the last step is choosing a partner that allows you to sell intuitive cloud services, while maintaining a higher level of control over the customer relationship. The right partner will offer a range of partnership options to suit your specific needs – perhaps even on a deal-by-deal basis.
However, they’ll also ensure that no matter which methodology you choose, you’ll be able to access expertise, technical support, and guidance every step of the way. An effective vendor partner will offer everything from brandable marketing materials and campaigns to extra customer support to help differentiate your brand.
Additionally, leading partners can offer access to more advanced solutions for offering cloud services, such as unified UCaaS and CCaaS platforms with advanced AI capabilities that provide meaningful business outcomes.
“We believe that the reseller model is key to empowering businesses to deliver exceptional cloud services while maintaining full control over their customer relationships,” says Patrick Sheehan, VP of Channel Development & Distribution at Intermedia.
“Our partners benefit from consistent, monthly recurring revenue streams and the flexibility to customize and brand their solutions. By choosing the right partner and leveraging innovative UCaaS and CCaaS platforms, companies can drive significant growth and provide unmatched value to their customers.
The future of cloud services is bright, and with the right strategy and support, resellers can seize this opportunity to thrive in an evolving marketplace.”
While modern communications solutions incorporate AI already, we are just at the beginning of the journey to see how Generative AI will transform the world within the next few years and beyond. Partnering with an innovative vendor will ensure you will have relevant and impactful business solutions moving forward.
Sell Cloud Services and Preserve Customer Relationships
With the right reseller model, modern companies can effectively sell access to crucial cloud communication services to a wide range of customers, without compromising on customer loyalty or revenue. A leading partnership program can give you access to a host of benefits that support and fuel your profitable growth over time, from white-glove marketing tools to quick-start onboarding solutions.
What’s more, a leading partner will ensure you don’t have to rely exclusively on commissions for your income. You can set your own prices, create your own services bundles, and maintain profit margins as your business scales. Cloud is the future for many businesses, so make sure your company takes the right approach to selling these services to future and existing clients.
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