resellers removing mediasignage branding - problems

[warwickwater]

The one downside of MediaSignage's great pricing is letting resellers make a reasonable profit. The 'normal' reseller route is that the reseller gets a cut of the 'retail' price of the software. Clearly with MediaSignage low pricing there's not a lot of cake to slice in the first place, so the ONLY option for a reseller to make money is to charge more for the software, as part of a solution as a whole (design, hardware, content, install etc).

I still dont want my customers knowing "you just bought this in for $5 - why are you charging me $xxxx".

Like I guess hundreds of other potential customers I'm looking for a true white label - like the hardware you buy from the Far East, like all the online backup resellers etc etc. I cant risk investing thousands of dollars (well pounds actually, but same difference) in getting a system in a small chain somewhere, then have to have the "but you only paid $5" conversation... there goes my reputation and referrals!

Thoughts anyone?

[admin]

Hi,

I think I replied to you via email but will re-post here as well...

There are 3 parts to the answer.

Part1: You may choose on becoming a passive reseller. In other words, you white label our product on your own web site. Web visitors come to your site and subscribe to the service. You passively gain new customers which you never met and never sold to directly. If you choose this approach you can match our prices and still make good profit margins ( about 40%-50%) as indicated on our pricing calculator. Set to match our prices, be sure to set the gain to 1 on the pricing calculator. ( http://www.mediasignage.com/html/reseller_calc.html )
So, you are making very good repeat, passive income every single month, simply by matching our prices. Customers receive no benefit when subscribing directly thorough us. Plus you can give them phone customer support which will not do after our final release (this is on purpose to try and promote resellers).

Part2: You can be more expansive than us. Simply increase the gain value on the pricing calculator ( http://www.mediasignage.com/html/reseller_calc.html ) If you decide to be more expansive you may choose to give additional services such as added technical support, several hours of content creation, run educational Webinars and other possible added value services. Of course you may also choose to be more expansive and not offer anything else, it's completely up to you.

Part3: MediaSignage has taken elaborate steps to hide ourselves from your customers as we use a 3rd party domain name ( www singange dot me ). This will prevent your web visitors from ever finding us through your white labeled product.



So, if you are buying hardware to resell, I would consider you an ACTIVE resellers and not a passive one.
Which is great, you can sell the service for more, make money on hardware, make money on content creation etc ...
And, if you physically are getting new customers ( not through the web ), of course you should  charge them more for the effort you put in getting them...

But, passive resellers ( the ones that don't do much, just post our White Label info on a web site ) ... for them, making continous, repeat, passive income of 40% - 50% should be VERY attractive.

Hope this help and I am always glad to help,

Regards,

Sean - MediaSignage.com

[warwickwater]

I'm a bit lost!

On the calculator, with the gain set to one, on referral and white label, the customer cost is $73 (for a 10 player, 1G system), leaving me with a $40 loss due (I assume) to the $480 annual charge @ $40 a month.

What am I missing (this time!! )

[admin]

The key question is how many customers you reffred in the calculator.
If you just refered one, using a gain ratio of 1, you will not make much ( or possibly anything ) ...
BUT, as you add more and more customers with lets say, each with a few players ( lets say 5-10 as most likely most of your refered customers will be small, as there are MANY more small Fish in the sea ) .... you will start seeing YOUR COST per player reduce thus, your profits increase.

Hope this helps,

Sean - MediaSignage.com