Why ERP Resellers Earn Higher Margins than SaaS Resellers

In the software resale market, not all reselling models are created equal.ERP resellers often earn significantly higher margins compared to traditional SaaS resellers due to the complexity, customization, and services associated with enterprise solutions.

1. Value-Added Services Increase Revenue

ERP resellers don’t just sell software—they provide implementation, training, consulting, and support services. These services add substantial revenue on top of the software sale, unlike standard SaaS resellers who primarily earn commissions on subscriptions.

2. Customization and Integration

ERP systems often require customization and integration with existing business workflows, which resellers handle. Clients are willing to pay a premium for these tailored solutions, increasing the reseller’s margins.

3. Long-Term Recurring Revenue

ERP resellers often offer ongoing maintenance, support, and subscription services. This creates stable, recurring revenue streams that are higher than typical SaaS commission structures, which may be limited to a percentage of monthly or annual fees.

4. Targeting Enterprise Clients

ERP resellers typically serve mid-sized to large businesses with more complex requirements. Enterprise clients have larger budgets and are willing to invest in comprehensive solutions, allowing resellers to earn higher margins per client.

5. Upselling Modules and Features

Unlike standard SaaS products, ERP solutions are modular. Resellers can upsell additional modules such as finance, HR, analytics, or inventory, increasing the overall revenue per client and boosting profit margins.

6. Strategic Partnerships Strengthen Margins

ERP resellers often build strong, long-term relationships with clients as trusted advisors. This strategic positioning allows them to negotiate better pricing, offer premium services, and retain clients for multiple years.

Key Advantages of ERP Reselling Over SaaS Reselling

• Higher revenue from implementation, consulting, and support services.
• Premium pricing due to customization and integration needs.
• Stable recurring revenue through maintenance and subscriptions.
• Serving enterprise clients with larger budgets.
• Opportunities to upsell modules and advanced features.
• Strong client relationships that ensure long-term margins.

Conclusion

ERP resellers earn higher margins than SaaS resellers because they provide value beyond the software itself. Through implementation, customization, support, and long-term partnerships, ERP resellers can maximize revenue per client, build recurring income streams, and establish themselves as trusted technology partners in the enterprise market.