The Managed Memo
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Heard this week: a reseller program that fixed its own economics

Heard this week: a reseller program that fixed its own economics
A source close to the numbers tells us a host whose agency-reseller channel was barely profitable rebuilt the program around one metric: support cost per reseller seat.
The old model let agencies dump every client ticket onto the host. The fix — a tiered model where agencies handling their own tier-1 got 35% margin, and pass-everything-through agencies got 15%.
The outcome: within two quarters, 60% of resellers opted into self-support to grab the margin, and the host's support cost per reseller account dropped 44%. Channel revenue grew 19% because the program finally made sense to scale.
Unconfirmed, but two competing hosts reportedly copied the tier structure.
Watch this: aligning margin to support behavior is the reseller story to steal.
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