The affiliation and reselling model: a strategic way to generate recurring digital business

Jane Anderson
Jane Anderson
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In a context of digital maturity and competitive pressure, companies are looking for ways to expand their revenues without compromising their structure or distracting the focus from their main value proposition. Faced with this challenge, affiliation and reselling models emerge as intermediation mechanisms that make it possible to capitalize on trust, the network of contacts or sectoral authority, turning them into business.

Both models share a common logic: capturing value by facilitating the connection between supply and demand. But they differ in the level of involvement. In affiliation, the affiliate acts as a prescriber and receives a commission for each conversion generated, while the provider company assumes the execution of the service. In reselling, in addition to this recommendation, the intermediary assumes commercial and brand control, operating as a visible supplier to the end customer.

This architecture allows agencies, consultancies, digital marketing professionals and niche players to expand their service portfolio without the need to invest in infrastructure, technical personnel or product development. A model that, managed with strategy, can translate into stable income, long-term loyalty and an improvement in competitive positioning.

Affiliation: a market in constant growth

affiliate marketing “It is probably one of the longest-running strategies in digital marketing”points out Soraya García Merino, General Director of Tradedoubler in Iberia, Latam and Türkiye. Born in the nineties, it has evolved from a one-off conversion tactic to establishing itself as “a must have within the strategic planning of any brand with an online transactional presence.”

Traceability, combined with advanced attribution technologies, makes affiliate marketing a mature channel

The value of the channel, he explains, lies in its ability to cover the entire conversion funnel, from branding to sale, integrating a diverse network of affiliates that ranges from media and influencers to coupon platforms, cashback, retargeting or app marketing. “It is a results-based model, in which the advertiser pays only when a specific action occurs”he adds. This traceability, together with advanced attribution technologies, makes affiliate marketing a mature channel with growth potential.

The data supports the robustness of the model. According to figures collected by OptinMonster, more than 80% of advertisers globally declare they use affiliate programs, although the degree of adoption varies by sector and market. The associated business volume exceeds 18.5 billion dollars and is projected to reach 31.7 billion in the next five years.

The rise of this approach responds to multiple factors: an economy increasingly based on performance, the emergence of automated management tools, the possibility of scaling without increasing fixed costs and, above all, the ability to reach micro-segments through authoritative voices within specific communities. Instead of competing on CPC or CPM, the advertiser pays for results, while the affiliate monetizes its positioning, without assuming logistical or financial risks.

In sectors such as web hosting, cybersecurity, software as a service (SaaS) or online training, the affiliation model has established itself as a relevant recruitment channel. And in this environment, the role of the intermediary has evolved: it is no longer limited to placing links, but rather builds editorial proposals, comparisons, demonstrations, useful content and customer experiences that provide context and generate conversion in a sustained manner.

The leap to reselling: more control, margin and commitment

For many companies, the logical step after validating the affiliation is to explore the reselling model. Here the relationship with the end customer is no longer limited to a reference, but becomes a complete experience under its own brand. The wholesale supplier continues to provide the infrastructure, technical support or back-end service, but the intermediary company controls the pricing, commercial service, brand experience and, in many cases, billing.

This approach allows us to structure service packages, adapt positioning to specific segments and, thus, build long-term relationships. In addition, the potential margin is higher, and a much more predictable recurring revenue dynamic is generated. Services such as hosting, domains, software licenses or productivity tools fit especially well into this model.

An illustrative example is offered by Dinahosting, an independent provider based in Spain, which has maintained a reseller program for more than a decade designed to accompany professionals and companies seeking to offer hosting and domain services under their own brand. As explained by María Xosé Saborido, Head of the Customer Service Area, “The Dinahosting reseller program was born with a very clear purpose: to accompany professionals and companies that wanted to offer quality hosting and domain services, but with their own brand and business model.”

The evolution has been constant since its launch. “We have gone from a basic resale model to offering a complete ecosystem, with advanced customization tools, APIs, white label and a scalable category structure,” points out Saborido. Currently, this channel represents a significant part of its business, with a growth of 12% in the last five years.

A model that creates value throughout the chain

From its position as a technology multinational, Tradedoubler also provides a vision of how technological infrastructure has been decisive in scaling this model. “Without a solid technological infrastructure, it would be impossible to efficiently connect advertisers with affiliates and guarantee reliable and transparent tracking”says García Merino. The company operates with its own platform that centralizes statistics, traffic, ROI, commissions and billing; employs advanced data analysis with tools such as Power BI; and has integrated operational automation, fraud control and AI technologies such as CoPilot or ChatGPT to optimize processes. “In short, technology not only supports affiliate marketing: it drives it. It is what allows it to scale, automate and maintain a profitable, measurable and constantly evolving model”he summarizes.

Reselling allows you to expand the catalog with services that the client already expects from their trusted interlocutor

In practice, reselling allows a design agency, a marketing consultancy or a digital solutions provider to expand its catalog with services that the client already expects from their trusted interlocutor. At the same time, it prevents that client from seeking solutions on their own, exposed to misaligned offers or to suppliers with aggressive commercial policies.
From the point of view of the end customer, the advantage is in integration: a single interlocutor, a brand with which they already have a relationship and consistent support. For the company that resells, the advantage is in the margin, loyalty, control and the possibility of creating bundles or combined services that reinforce your proposal.

But for this model to work, an aggressive commercial policy or attractive discounts are not enough. “Beyond volume discounts, we believe that the success of a reselling model depends on three key factors: trust, autonomy and support”summarizes Saborido. Trust, since the professional needs a solid, secure and transparent infrastructure on which to build their value proposition. Autonomy, because the reseller must have the freedom to define their commercial model. And support, because “Behind every project there are people who need quick responses and real support.”

Profiles and strategic approach

The reselling model is not restricted to a single professional profile. At Dinahosting, as María Xosé Saborido explains, “The reseller profile is very diverse, and that is precisely one of the strengths of the program.”

Among those who benefit the most are, on the one hand, marketing, communication and web design agencies, which integrate hosting and domains within their service offering to control the entire chain. On the other hand, technology companies and IT providers, which expand their catalog by integrating hosting with SaaS solutions, maintenance or custom developments.

“Success involves turning resale into a natural extension of your value proposition”says Saborido. And adds: “The most established resellers make the most of personalization tools such as white label, language, communications and adapted panels, to reinforce their identity and their relationship with the end customer.”

More than a way to diversify income, the reselling model is revealed as a strategy to build stronger and lasting relationships between professionals, clients and technology provider.
In this sense, García Merino points out that “The success of an affiliate program goes far beyond establishing a competitive commission.” Among the good practices observed, the realistic management of expectations, the constant updating of creatives and measurement systems, and the active collaboration between affiliate, advertiser and network stand out. “We all play a complementary role within the same strategy. When there is that collaboration, the results come naturally” and the reselling model is revealed as a strategy to build more solid and lasting relationships between professionals, clients and technology provider.

Metrics, challenges and opportunities

The success of an affiliation or reselling model is not measured only by sales volume, but by the quality of income. The renewal rate, average value per customer, net margin and customer acquisition cost (CAC) are essential indicators to assess whether the model is well structured.

A good program should allow you to manage dozens or hundreds of clients without the operating cost growing proportionally.

So is the level of automation and scalability: a good program should allow you to manage dozens or hundreds of clients without the operating cost growing proportionally. Here aspects such as the multi-user panel, automatic renewals, reporting tools or integrations with billing systems come into play.

Among the challenges, the need to well manage the relationship with the end customer stands out. In the reseller model, the visible brand is that of the intermediary. If something fails, the reputational impact directly affects the reseller. Therefore, it is key that the provider acts as a reliable partner and that the intermediary establishes quality care and monitoring protocols. From Dinahosting, they insist that the most complex challenge is not so much technical as relational: “The reseller that works is the one who builds real services, not the one who seeks quick profitability”emphasizes María Xosé Saborido.

In terms of opportunities, the rise of the digital economy, market fragmentation and the growing demand for integrated services mean that the potential of this model continues to expand. From infrastructure solutions to software, training, productivity tools or digital subscriptions, the range of services that can be intermediated continues to grow.

For companies looking for new lines of income without expanding staff or taking on operational risks, well-managed affiliation and reselling offer a realistic diversification path aligned with the capabilities they already have. And for suppliers who understand the value of the channel, building programs designed to provide value to their partners is, in addition to a commercial strategy, a commitment to shared growth.