A reseller earns margin on the products it sells you, so its recommendation is never fully separate from its inventory. A vendor-neutral advisor does not sell or deliver technology and takes no margin on what you buy. It is still paid, either by you or by the provider you select, and that arrangement is the thing to test. In both cases you may end up with a good outcome. The difference is who profits from the choice.
How does a reseller get paid?
A reseller earns margin on the products and services it sells you. That margin is usually built into the price you are quoted, and it varies by vendor and by product. The reseller is also frequently subject to vendor targets and accreditation tiers that depend on volume sold.
None of that makes a reseller dishonest. It does mean the set of options you are shown is bounded by the agreements they already hold.
How does a vendor-neutral advisor get paid?
Some vendor-neutral advisors charge the client a fee agreed in advance. Others, including CYBORIUM, are paid by the provider the client selects. CYBORIUM charges the client nothing and is paid by the provider ultimately selected, under a capped, success-based arrangement. The fee is capped, but it is a percentage, so it rises with the size of the contract, and the rate is negotiated separately with each provider.
Does the fee structure change the recommendation?
It changes what the recommender gains from each outcome. A reseller earns more from some products than others and may hold no agreement at all with a provider that suits you. Because the rate varies between providers, there is a real incentive gradient. It is bounded by the cap, by providers that are not selected paying nothing, and by disclosure of the applicable rate on request.
Who holds the contract?
With a reseller, the contract for the technology often sits with the reseller rather than the vendor, which adds a party between you and the people who build the product. CYBORIUM does not contract for technology at all. Every agreement sits directly between the client and the provider they select, on that provider’s own commercial terms.
What should you ask before engaging either?
Ask who pays them, how much, and whether the amount changes depending on which provider you pick. Ask what vendor agreements, quotas or accreditation tiers they hold. Ask whether they will contract for the technology themselves or whether the contract sits directly between you and the provider.
Comparing the two side by side
| Vendor-neutral advisor | Reseller | |
|---|---|---|
| Revenue source | A fee paid by you, or a capped fee paid by the provider you select | Margin on what you buy |
| Does the amount vary by provider? | It can. CYBORIUM negotiates its rate with each provider and discloses it on request | Usually yes |
| Vendor quotas or tiers | None held | Common |
| Who holds the technology contract | You, directly with the provider | Often the reseller |
| Range of options considered | The market | Bounded by existing agreements |
| Sells or delivers technology | No | Yes |
When a reseller is the right choice
If you have already decided what you are buying and want it procured and delivered efficiently, a reseller is often the practical option and can be cheaper than buying direct. The distinction matters most while the decision is still open, when the question is which provider fits rather than how to buy the one you have picked.
Related reading: Procurement as a Service, Guided Vendor Evaluations and the CYBORIUM FAQ on independence and fees.
Also relevant: the full comparison index.