Reseller vs referral partner comes down to one question: who sells the product? A reseller buys the product, sells it to the customer and often bills and supports that customer. A referral partner only introduces a lead and earns a fee if the vendor closes the deal.
This guide compares the two models on contracts, margin, control and support load. It uses public program pages from Microsoft and HubSpot, plus the US Federal Trade Commission (FTC) rule that decides when a sales arrangement counts as a franchise.
The core difference
The two models split the sale in different ways.
- Reseller. The partner owns the sale. It buys the product or service, sets its own price to the customer, and keeps the gap. The customer often has a contract with the reseller, not the vendor.
- Referral partner. The vendor owns the sale. The partner points a buyer to the vendor and steps back. The customer signs with the vendor, and the partner is paid for the introduction.
Microsoft's Cloud Solution Provider (CSP) program shows the reseller side clearly. Its program guide says a partner can join as an indirect reseller or as a direct bill partner. An indirect reseller buys through a distributor that can help with marketing, customer support and billing. A direct bill partner buys from Microsoft and sells straight to customers.
HubSpot shows the other side. Its partner page lists a Solutions Partner Program for agencies and service providers. It lists a separate Affiliate Program for bloggers, review sites and other content creators who earn money by sending buyers to HubSpot.
Sources: Microsoft Learn, "Cloud Solution Provider program overview," archived August 9, 2025; HubSpot, "Partner With HubSpot" page, archived September 4, 2025
Contracts and paperwork
Resellers sign more. In the Microsoft CSP program, every partner joins the Microsoft partner program, can sign legal agreements for its company and passes business vetting each year. A direct bill partner also needs a passing score on a capabilities assessment.
Referral deals are usually lighter. HubSpot's affiliate program, relaunched with a 30 percent recurring commission for up to 12 months, is built around a signup and a tracking link. The company's announcement shows a 180 day cookie window, which is how long a click can still earn credit.
The reseller also signs a second contract with its own customer. Resale terms, service levels and renewals sit in that document. A master service agreement is a common form for it.
Sources: Microsoft Learn, "Cloud Solution Provider program overview," archived August 9, 2025; HubSpot, "HubSpot Launches Its Revamped Affiliate Program" (updated June 2023)
Margin and pay
Resellers earn the difference between what they pay and what they charge. That spread can be large, but the reseller carries the cost of stock, billing and unpaid invoices. Margin that looks high on paper shrinks once those costs are counted.
Referral partners earn a set fee or a share of revenue. The fee is smaller per deal, but the partner has no inventory and no billing risk. HubSpot's affiliate commission is a percentage of what the referred customer pays, and it ends after a set period.
| Factor | Reseller | Referral partner |
|---|---|---|
| Who sells | The partner | The vendor |
| Who bills the customer | Usually the partner | The vendor |
| How the partner is paid | The price gap | A fee or commission |
| Money at risk | Higher | Low |
Sources: HubSpot, "HubSpot Launches Its Revamped Affiliate Program" (updated June 2023); Microsoft Learn, "Cloud Solution Provider program overview," archived August 9, 2025
Control and the customer relationship
A reseller controls more. It can set price, bundle its own services and own the day to day contact. Microsoft's guide says the direct bill model requires partners to sell to, bill, manage and support their customers on their own.
A referral partner controls little. The vendor sets price, terms and follow up. The partner may never speak to the customer again after the introduction. That suits a blogger or consultant who wants no sales work. It suits a services firm less, because the vendor holds the account.
Vendors also set rules on both models. A reseller may need to meet revenue, security and support standards before it can join. Microsoft's guide says direct bill partners need at least 12 months as an indirect reseller, at least one million US dollars in trailing 12 month CSP revenue and a passing capabilities assessment.
Sources: Microsoft Learn, "Cloud Solution Provider program overview," archived August 9, 2025
Support load
Support is where the models split most. A reseller is the first call when something breaks. It needs staff, tools and a way to reach the vendor when it cannot fix the problem itself. In the Microsoft indirect model, the distributor helps with customer support and billing, which cuts that burden for the reseller.
A referral partner has almost none. The vendor handles onboarding, support and renewals. The partner's work ends at the handoff, so it is wise to ask the vendor how leads are tracked and when a fee is earned.
Sources: Microsoft Learn, "Cloud Solution Provider program overview," archived August 9, 2025
When a resale deal can become a franchise
Most reseller and referral deals are not franchises. But one federal rule is worth a check. The FTC Franchise Rule defines a franchise by three tests. The partner gets the right to operate a business tied to the seller's trademark. The seller exerts or can exert significant control, or gives significant help. And the partner makes a required payment to the seller or its affiliate.
The rule says a required payment does not include money paid for "reasonable amounts of inventory at bona fide wholesale prices for resale." So a plain reseller that only buys stock at wholesale is not caught by that test. Trouble can start when a program adds fees, branded operations and tight control. If a program looks like that, ask a lawyer before signing.
Sources: 16 CFR 436.1, Definitions, FTC Franchise Rule (Legal Information Institute copy)
How to choose
- Pick reseller if you already serve the customer, want to add your own services, and can handle billing and support.
- Pick referral if you want income with no stock, no billing and no support, and can live with the vendor owning the account.
- Run both if the vendor allows it. Some firms refer small leads and resell to the accounts they serve.
Read the program terms first. Check how long a commission lasts, who owns the customer, and what happens at renewal.
Sources
- Microsoft Learn, Cloud Solution Provider program overview. learn.microsoft.com
- HubSpot, Partner With HubSpot. hubspot.com/partners
- HubSpot, HubSpot Launches Its Revamped Affiliate Program. hubspot.com
- 16 CFR 436.1, Definitions. law.cornell.edu