Business Models in the Software Industry


A Distributor gets software directly from a software vendor and sells this software to Authorized resellers. The relationship with Authorized resellers is handled by the Distributor.

Business Model Canvas for Distributor

The value proposition for the customer of the distributor is that he provides the distribution service to resellers and that the distributor provides great margins for the resellers and that he supports resellers in selling the solutions. The customer relationship is direct to the resellers. Customer segments cannot be determined in this generic distributor business model.

Revenue streams are license, support and maintenance fees flowing in from the customers and resellers to the distributor.
A distributor key activity for making business in this business model is convincing and onboarding resellers. As soon as the resellers are on board, the next key activity kicks in: enabling the resellers to sell. Key resources are sales support for resellers and support for the resellers┬┤ customers.


More details and background information can be found in these books:

Title: Profit from software ecosystems


ISBN: 3842300514

Mergers and Acquisitions in the Software Industry

Title: Mergers and Acquisitions in the software industry - Foundations of due diligence


ISBN: 3732243818

(c) Dr. Karl Popp 2017