What To Look Out For In A Reseller Agreement

Therefore, the agreement between the software reseller should clearly define the role of the reseller and distinguish it from that of an independent employee or sales agent. On the other hand, if you are a reseller, you may want to consider accepting this clause if large suppliers are interested in delivering their products to you, as this would not only be attractive to the large supplier, since you are eliminating your competition, but you will also bring a large supplier into your business, which will probably attract more consumers than a small supplier. The reseller does not have the knowledge to use the software provided In cases where the software provider and the reseller are not established in the same country, it is necessary to define the current legislation. Although resellers sell products to end-users in accordance with their country`s laws, rules and regulations, the same rules may not apply to the software provider. The agreement should clearly define the commissions for each service and indicate whether resellers receive these commissions as a one-time or monthly fee when the end user renews their license. You should also check if you are compensated for the future purchase by the customer you have secured for the business, and if you can sell them on additional products and services from other companies. The best way to describe a reseller agreement is through an agreement between the goods supplier and the company that plans to distribute the same products to the general public. Such agreements have become commonplace around the world due to the marketing of different sectors and changes in the way consumers buy. Whenever some form of exclusivity is granted, the publisher should insist that performance requirements be included in the software reseller agreement. This could provide that exclusivity is contingent on the sale by the reseller of a certain number of licenses or the achievement of a certain level of turnover each year. For new markets, performance requirements are often increased each year over the life of the agreement. The developer does not have the capacity to produce software ordered by the reseller You should expect that the software reseller agreement will be designed according to the laws of the country where the company in which you will resell is headquartered.

Some countries may have different laws regarding the sale of products and services online, as well as specific restrictions that you must comply with. Let`s take a closer look at each of these entities so that you know exactly what the rights and responsibilities of each of them are. From a dealer`s point of view, an exclusive deal may seem much more advantageous, because you don`t have to “fight” for each individual customer, with hundreds of people trying to sell them exactly the same product. Compensation to the reseller is usually the difference in price between the amount paid by the user/customer and the price paid by the reseller to the publisher. However, some software reseller agreements provide that the reseller receives a sales commission based on the royalties that the user pays directly to the publisher, which is more like how an agent`s sales agent is compensated). This is particularly the case with the “Software as a Service” (or “SaaS Agreement” agreements. A lot of people confuse an agent with a sales agent. The main difference between the two is that a sales agent is not allowed to license the end on behalf of the employer.