What is Revenue Sharing?
When organizations are finished using their IT equipment, there is no reason to let it go to waste. By reselling used electronics, businesses are able to recover operating capital and reduce the total cost of ownership of their devices.
Without internal resources or expertise to resell their own computer equipment, businesses might sell to the highest bidder, let employees take it, or hand it off to a “free” recycler. These decisions open companies up to huge risk – breaking chain-of-custody and data security, risking improper disposal, and flat out losing money.
Q: How can devices be resold while still maintaining data security and compliant disposal?
A: Revenue Share.
With revenue share services, organizations are able to recover value from their IT equipment by working with an established reseller who can remarket devices efficiently and securely.
1. Make sure you Trust your vendor.
When a company wants to resell their equipment, it’s important to find a partner they can trust. Often times businesses are taken advantage of if they are unaware of the value their IT assets still hold. The easiest way to find a reputable vendor is by using an R2 or e-Stewards certified IT Asset Disposition (ITAD) company. These certifications ensure equipment is handled properly, even if they aren’t able to be resold. However, not all companies who claim they are certified are in fact certified. Some companies may not hold certification themselves, but send IT assets to a downstream certified vendor. Without being directly certified, the recycler or broker has no legal obligation to destroy data or responsibly dispose of old equipment, leaving the generator on the hook if anything goes wrong. Double check your vendor is truly certified with the e-Stewards or SERI R2 website directories.
2. Make sure data will be Secured.
Secure logistics, chain-of-custody reporting, and audited destruction of all sensitive data is important when trying to resell your IT equipment. There have been many occasions, as recently published in a NAID study, when sensitive data is found on purchased equipment that did not undergo proper data destruction. As mentioned, using a certified vendor will ensure your company name is not plastered in the headlines with a data breach due to improper disposal. Make sure to ask your ITAD vendor about their data wiping and destruction processes, how identifying labels are removed, and what type of proof they provide. A certificate of destruction, if backed by a certified company, will serve as proof if you’re ever questioned in an audit.
3. Ask about Remarketing procedures.
A good resale partner will be able to get fair market value for your used computer equipment by properly evaluating each device based on age and condition, with industry knowledge of technology market values. Devices should not be sold for too little to ensure appropriate value back, but also not too high so they will actually sell. If the vendor is a Microsoft Registered Refurbisher, they will be able to add value by installing legitimate Microsoft software licenses too. It’s also important to look at the channels they use to resell equipment. Look for a well established online presence (like eBay or some other selling platform) with an extensive remarketing network in addition to wholesale buyers. The used IT equipment market is very competitive, so its important to find an ITAD partner who knows what they are doing.
4. Understand how revenue is shared.
It’s important to understand how remarketing value is shared after devices are sold. Often times service providers offer agreements detailing transparent numbers on what percentage is given back to the customer and what percentage is used to cover or offset processing costs and other services used. Your vendor should be upfront with you about how this process works to best align with your business objectives and help you maximize your return on investment.
SEAM offers an extensive remarketing program to maximize returns on end-of-life-assets while ensuring chain-of-custody, data security, and compliance with all environmental laws and regulations. We thoroughly clean, test, and refurbish equipment adhering to the strictest standards in the industry to ensure the highest possible value is recovered and all data is protected. Located in Sioux Falls, South Dakota and serving customers in Iowa, Nebraska, North Dakota and the greater South Dakota area- we are here to help. Contact us to learn more.