# 8186 Resellers VS Affiliates - 6 Good Reasons why Reseller Programs do better than Affiliate Programs
By: Don Scott
First of all, many people confuse the difference between reseller programs and affiliate programs, and at times even use the two definitions interchangeably. However, there are distinct differences between them.
An affiliate will host a link or banner promoting another company's website or product and if someone purchases a product through that website or link they earn a commission which is then processed through specialized affiliate software tracking their unique affiliate ID.
A reseller is actually purchasing a product or resource from another company and then reselling to an end user for a profit. Reseller programs usually include resale rights, which allow the reseller to advertise, package and present that product or resource as if it were their own.
Both affiliate and reseller programs can be profitable, however, when comparing the two as a business opportunity, and before you decide which way you should go, consider these 6 reasons I have outlined below.
1. Credibility. What kind of feeling do you get from a particular offering on a website when you realize that the offering you see is just a link to another website? Let me take this one step further: Have you ever discovered a product or service that you were interested in while browsing someone else’s site; moused over it, then noticed that it was just an affiliate link to another website? Didn't that site immediately lose some credibility in your mind? You then decided to type the URL directly into your address bar, and went straight to the originator of that product while bypassing the commission for that affiliate who introduced you to the product in the first place.
You never did that? OK, fine, but this happens all the time in affiliate marketing, and forces the webmaster to put additional lines of code in to prevent the affiliate link from ever being displayed until it's actually clicked on. This in itself is not enough and does nothing to increase credibility. A business model with its own unique product and content will always lend itself to greater credibility.
2. Competition. Affiliate Programs grow exponentially. Even if you are lucky enough to be the first one to sign up for a brand new shiny affiliate program and the only one on your block with the latest and greatest product to sell, you can bet that in no time there will be thousands of affiliates competing with you, selling the very same product, many of whom will have more experience and better marketing skills than you do.
3. Price Control. You can't discount something that doesn't belong to you in the first place. To stay competitive in any market you have to have some control over the selling price. When you're shopping in the department store, aren’t you more interested in buying a product when you see an item that has been marked on sale? With affiliate marketing you have no control over the price whatsoever. On the other hand, a reseller of digital products with full resale rights for example maintains complete control over the final selling price, and since there is no more overhead involved in selling 1 or 1000 digital products for download, a reseller of these types of products can always afford to offer a sale price.
4. Packaging. Have you ever noticed those nifty box type packages for digital products such as ebooks and software for download? This is nothing more than eye candy, but those little graphics have really become popular over the last 5 years or so, and for good reason. Obviously, this packaging is not really downloaded along with the product itself, and actually doesn't even exist except for the graphical representation to display on the web. This type of packaging makes your product aesthetically pleasing and really stand out against your competition. You can purchase easy to edit templates for these boxes all over the internet at places such as boxedart.com (they primarily sell website templates but they also offer a few box templates as well), then simply open them up in Photoshop or Fireworks, and change the text to reflect your product name and bingo. You've got the look and feel of a professionally packaged product ready to sell and looking like something you might see on the shelf of your favorite retail outlet.
5. Resellability. Only a reseller or owner of an original product can offer their own affiliate program. Offering an affiliate program can be a great way to generate exposure for your product and dramatically increase your potential for sales. An affiliate marketer can never offer an affiliate program but rather rely on someone else’s product, or at best, offer another marketer an affiliate program which is accomplished with a two-tier type system.
6. Indexing. The major search engines are quite aware of the duplication that exists because of affiliate marketing and do take great steps in preventing that duplication from compromising the system itself, and understandably so. Imagine doing a search for a product that you're interested in, and your search result displays an affiliate marketer in the number 1 spot above the actual company who originated that product. It just doesn’t happen. Knowing that the major search engines give the most weight to original content you would best serve yourself to create some. A site compromised mostly of affiliate links can actually be penalized by many of the search engines. A site made with original content which hopefully includes an original product can go a long way in increasing the likelihood that the search engines will give you a top spot for your particular venue, and because people do use search engines to find what they are looking for, your chance that they will find you really does depend on you becoming indexed for your keywords and preferably in the number 1 spot, or at least on the first page of results. An affiliate can never achieve these results for the products they are selling because of the duplication factor; however, a reseller can achieve this with high quality packaging and the right presentation.
Now having said all that, let me add that I especially love affiliate programs. Huh? This is about the 6 good reasons why reseller programs are better than affiliate programs, then hmm, why? Let me explain: If the affiliate program you are marketing is a good match for the venue and content of your website, then an affiliate offering will enhance the usefulness of your website. Let us say, for example, that your website is about weddings. Let us imagine that you write wedding speeches. Your wedding speeches are original, so will be well received by those who are searching for wedding speeches, and the search engines will love you for your original content. Unfortunately nobody is actually buying your wedding speeches, so you are offering them for free just to gain some traffic. What can you do with that traffic? Well, you can sell wedding gowns, cakes, or just about anything else associated with weddings by using an appropriate affiliate program. You can find an affiliate program for just about any venue that you can imagine. Visitors to your website will appreciate the convenience of having all those products related to weddings all in one place, and your content specific offering will make good sense to them. That is opposed to, let's say, a website about resume writing who tries to sell everything from tube-socks to cell phones.
So you see that in the end reseller programs do better than affiliate programs for at least the 6 reasons that I explained. However, affiliate programs do have their place on the web and can be extremely lucrative if utilized properly which can greatly improve your chances for success as an internet marketer. Happy Marketing.
Don Scott is the owner of resellerdepartment.com Reseller Department is a resource for internet marketers interested in affiliate programs and reseller marketing, tips, tools, products and information.