A reseller agreement on paper - How to set up an authorized reseller/dealer program

How to Set Up an Authorized Reseller/Dealer Program

An authorized reseller program is an agreement between a brand and its resellers that allows the sellers to distribute the provider's products in exchange for certain benefits like exclusive discounts, access to marketing materials and more.

The goal of the program is to increase brand recognition, sales and MAP compliance.

In this blog post, we'll explore the benefits of authorized reseller programs (also known as “authorized dealer programs”), we’ll show you how to get started and we’ll share some advice on how to maintain relationships with your authorized dealers.

How to Set Up an Authorized Reseller Program

Setting up an authorized reseller program can be a complicated task, so it's important to have concrete steps in place if you're considering entering the ecommerce arena. 

A watch store ecommerce marketplace - How to set up an authorized reseller / dealer program

We’ll outline some basic steps below:

  1. Establish criteria for who will make the cut as an authorized dealer. This can include factors such as location, customer service history and present/past ability to hit certain sales goals
  2. Set pricing strategies that reflect the authorized dealer's competitive position in their region. These strategies should also help to maintain a healthy margin and ensure the authorized reseller is adequately compensated for their efforts.
  3. Include your minimum advertised pricing policy in those pricing policies.
  4. Decide on distribution options and any incentives or bonuses you wish to offer authorized dealers. This can incentivize your high performing dealers to remain loyal, engaged and MAP compliant.
  5. Begin accepting applications for your program.

It may seem daunting but done right, these programs can provide worthwhile benefits and solidify your brand's presence in the digital landscape.

Writing down a list of action items - How to set up an authorized reseller / dealer program

Benefits from Authorized Dealer Programs

An authorized reseller or dealer program benefits both brands and buyers alike. 

Brands who set up this type of program are able to establish a wide network of vetted, reliable partners that they can entrust with certain brand activities like marketing or merchandising. 

On the flip side, consumers also get the assurance that what they're purchasing is authentic.

Being an authorized seller gives you certain retail privileges like:

  1. License to use brand’s trademarks and copyrighted images
  2. Customer service from the brand
  3. Product Warranties
  4. Product and sales training
  5. Access to special deals and new product releases
A customer service representative speaking on the phone - How to set up an authorized reseller / dealer program

Authorized reseller and dealer programs can be a great way for brands to maintain a level of quality control. Done right, implementing such a program can make sure products meet consumers’ expectations — after all, a brand is usually only as good as its weakest link. 

That’s why having top-level dealers is paramount when it comes to keeping customers loyal. To make their program successful, brands should first make sure they have established the right criteria for potential dealers.

How to Maintain Productive Relationships With Your Resellers

A successful program requires consistent two-way communication and active listening between both parties so that any challenges can be identified early on. 
In addition to staying in contact — whether that be via phone or email — setting up regular meetings both virtually and in person will help maintain a good relationship as well as further strengthen your bond. Furthermore, offering incentives for high performing resellers will not only cultivate an atmosphere of mutual respect but also show them that you value their business and should encourage their ongoing commitment. 

All in all, when it comes to keeping your authorized resellers/dealers happy, regular communication and incentivization go a long way.

Tips on Using Technology to Make your Program More Efficient

Today's brands know that authorized reseller/dealer programs are a must. But having an efficient program is another mission entirely. The good news is, technology can help make the process smoother than ever. 

MAPP Trap's price monitoring tool - How to set up an authorized reseller / dealer program

MAPP Trap product monitoring software is the ultimate tool for staying up-to-date with MAP enforcement and making sure that ONLY  authorized sellers carry your products. By leveraging MAPP Trap technology, you unlock peace of mind without spending an arm and a leg on resources — making the most of your reseller/dealer program.

We can help you put together a successful authorized reseller/dealer program so you can start building your brand faster.

Try MAPP Trap today with a free demo!

Guides & Tips

MSRP vs. MAP: Which Is Better For Your Brand

Pricing Transparency: How MAP and MSRP Affect Customer Trust

5 Ways to Enforce Pricing Integrity with Strategies Beyond MAP Policies