Some subscription vendors offer you a discounted subscription to their software or services. However, you’re expected to invoice your customers at retail price. AppBind takes care of this.

  • Enter the amount of the partner discount when purchasing a subscription and AppBind will track the wholesale price from the subscription vendor, and show the retail price to your customer. 

Example:  If you had a 50% partner discount from ActiveCampaign and you were charged $50 by ActiveCampaign, we would show your customer a charge of $100 from ActiveCampaign:

 

  • You can then add your own discounts to your customer, which are deducted from the retail price.

Example: If you want to offer your customer a 20% discount on ActiveCampaign’s retail price, add a “-20.00%” fee on the next line (see figure below).  This will then charge the customer $80, a 20% discount off the retail price of $100. Because your wholesale cost was $50, you’ll net the $30 difference:

AppBind handles all these calculations for every subscription charge, including for subscriptions like ActiveCampaign that increase in price naturally over time as the account grows. 

Just set it and forget it! Bookkeeping made simple.

Important: Please check the terms of your partner agreement if you’re allowed to offer discounts on the retail price to your customer.

See also How do I buy a subscription on behalf of a customer with AppBind?

Problems with partner discounts

Account transfer
If you are buying a discounted subscription as a partner, this makes transferring subscriptions much harder . When you transfer the subscription to the customer using AppBind’s transfer process, AppBind will remove your retail pricing and any optional discounts or fees. However, your customer will see the underlying wholesale price. You will have to transfer the account at the subscription vendor as well.

See also How do I transfer subscriptions to my customer?

Data Liability
When you’re retailing the software subscription, it also means you’re taking on the role of the software vendor selling the subscription to the end customer. This makes you liable for data breaches or other service issues by the software vendor. 

AppBind recommends rebating
Ask your vendor to switch to AppBind’s automatic rebate model that uses the AppBind virtual card to automatically calculate your margins as a partner and remits them to you.  We recommend using the rebating model because then you don’t have to set wholesale discounts, and you don’t have to remember to remove them before transferring the subscription to your customer.

 

MORE FROM OUR BLOG

You might also like

  • support

    One of the values of AppBind is that it provides automatic expense tracking and bookkeeping for both you and your customers. AppBind generates monthly statements automatically. Your customers always have access to their monthly statements when they log into their account under My Statements. You can send them an automatic notification on the 3rd of [...]

    Posted on
     January 15, 2022 
    by
    Sunir Shah
  • support

    In order to keep your own subscriptions adequately funded inside AppBind, you can set up a top-up budget for yourself. This will automatically add funds to your AppBind balance once your balance falls below some minimum threshold. Because it sometimes takes up to 5 business days to transfer money, we recommend keeping at least 2 [...]

    Posted on
     January 10, 2022 
    by
    Sunir Shah
See all posts

Get new posts to your inbox

Growing successful service revenue in a subscription economy.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.