hard20 pts · first answer countschannel-salesunit-economics

Reseller vs direct over time

Direct: CAC is $20,000 and the customer pays $50,000 per year. Reseller: the partner keeps 30% of every year's revenue, including renewals, and you spend $5,000 managing the partner per customer. Which statement is true?

A.The reseller is better every yearB.Direct is better in the first year onlyC.They are equal in every yearD.Both give $30,000 net in year one, but direct gives $50,000 per year after that versus $35,000 through the reseller

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Reseller vs direct over time

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