More and more, business and web users are on the lookout for complementary products and services to support their online assets, and in most cases it makes sense to start their search at the same organisation from which they bought their domain name.
In the days of increased competition and a plethora of technical solutions, Registrars find themselves operating in a market where white-labelled products and services represent fast an efficient opportunities to bring new products and services to market.
This is an effective way to increase revenues without the need for in-house product development, outsourced resourcing or operational support.
The environment Registrars now operate in is moving swiftly towards a traditional wholesaler, retailer model. You have the shelf-space, the audience and the brand and you need quality products and strong partnerships to drive your business further with maximum return and minimal risk.
However, your choice in vendor could be the difference between success and failure.
Here are four key tips for building a strong vendor relationship based on our experience as a provider of services to the Registrar channel.
1. A good and relevant product
The simplest and perhaps most important factor is to select products that are interesting and relevant to your customers. Look for a vendor that fits with your existing customer requirements and would be considered a valuable and complementary product or service.
Think about ease of take up when considering the products you have access to. For example, what’s the easiest way to increase your average ticket price by a few dollars for every domain name sold?
Regardless of whether you decide to white-label or resell the service, it’s important you partner with a reputable provider that has the credibility and a track-record of success with other Registrars.
For instance, niche vendors with specific expertise in a particular area are obviously more credible in that field than those with a general service. In this scenario, make sure you research and understand the history of this niche and seek out any relevant client experiences that can give you further insight.
2. Commercial terms that make sense
Pricing and margins will remain an important factor of any vendor relationship. You need to ensure that your chosen vendor is able to sell the product to you at a price that allows you to apply the appropriate margin ;to cover not only your the cost of delivery, but also your risk in delivering that product to your customer base.
It’s a simple fact that the initial costs for integration, development and launch may not be recouped for a period of time. Ask your vendor whether they are willing to adjust their pricing to reflect this fact, or if they would consider rethinking their pricing strategy throughout launch so that you can both benefit from the product’s success in the long term.
A vendor that demonstrates an interest in supporting you in the short term shows that they are in it for the long haul and while we’re all in it to make a dollar, a little flexibility goes a long way when you’re introducing a new product or service.
3. Significant experience in go-to-market strategy
Does your chosen new vendor have significant experience in launching a product to market and ensuring successful implementation? Consider vendors like suppliers: you’re providing them with ‘shelf space’ and you need to be able to incentivise and be incentivised to sell their product through to your customers.
Make sure you have a deep understanding of how your vendor is going to support you in selling their product. Do they have a strategy for and experience in co-operative marketing, sales rebates, sales team training, collateral and product support?
If the answer is no, then you’re only appointing a service provider. Look elsewhere for the support you will need to ensure joint success.
4. Flexibility and product development
In business, compromise is essential to ensure both parties benefit from the arrangement. Every business is different and their customers are different too.
Introducing a product that is not tailored to the requirements of your customer base could potentially result in failure and loss of customer loyalty.
Ask your chosen vendor if they are willing to build a product that is right for your customers and your position in market, and see how they respond to this request. If they’re willing to alter their standard offering or work with you to construct the right product configuration, that’s one less thing you need to do at the front end.
Choosing your vendors
When choosing your vendors, ask the hard questions. Test their ability to be flexible and their desire to find solutions that suit both parties and ultimately, benefit the customer.
Ensure that you have all of the information you need before joining forces with any new party, to put your business in the best position for success.
DiscoveryDNS – Wholesale DNS Services for Registrars
ARI Registry Services has developed a premium managed DNS service designed to address the challenges and risks presented by today’s dynamic online environment.
Sold exclusively through the Registrar channel, the DiscoveryDNS service can be specifically tailored to the demands of a Registrars’ technical, operational or commercial environment. Our objective is to provide an enterprise-ready DNS service to Registrars that has the potential to generate revenue and reduce operational risk from the provision of DNS services.
If you’re interested in having a chat about how our unique approach to DNS service provision could benefit you, drop me a line.
This article by Brendon Mitchell, Account Manager, ARI Registry Services, was sourced with permission from: