What is a Margin?
In a sales context, margin refers to the difference between the price a partner sells a product for and the price they paid the vendor for it. It's the partner's profit on the sale. For example, if a reseller buys a software license from a vendor for $70 and sells it to the end customer for $100, their margin is $30, or 30%. The margin is a key incentive for reseller partners. A higher margin means a more profitable partnership, which motivates the partner to invest more in selling that vendor's products.