If you are trying to determine the type of dealer agreement to design, ask some important questions that you want to clarify: a reseller agreement can mean something else, depending on who you are asking. Typically, these are agreements where a lender contracts with a reseller to allow it to sell the lender`s product or services to a third party. Reading 4 min Negotiating a tripartite contract can cause more errors, gaps and ambiguities, not to mention the fact that they are more expensive to design. If a customer needs the dealer`s services, it can be addressed in a separate contract between the customer and the dealer. The customer will probably prefer the tripartite contract, since he can try to impose joint and several liability on the seller and the dealer in the event of a dispute. There are two different ways of formulating contractual terms between the dealer and the customer, which I call the agreements from top to bottom and bottom up. What is the initial duration of the agreement? Do it long enough to give the distributor time to market with your products, but no more. It can be extended each year if it works. In this article, I discussed some of the specific topics that cause SaaS resellers (and in fact some other types of service sales contracts). The terms “reseller” and “reseller” are often used in a synonymous way to describe companies that purchase goods or services from a manufacturer and then distribute or resell them to retailers and consumers. However, there are significant differences between a distributor and a reseller and important issues that need to be addressed in agreements with resellers and distributors.
The parties often agree that a specific “commission” is paid to the dealer, a portion of the fees to be paid under the dealer-customer agreement to be paid, the balance being passed on to the seller. Are you going to name the distributor on an exclusive or non-exclusive basis – is he the only person authorized to sell your products in this area? Even if you agree to an exclusive agreement, you should reserve some existing customers for direct use, in which case you refer to it in the agreement. Good trading partners generally have characteristics similar to capacity, will and capacity. You must have the ability to successfully implement the product, the desire to sell the product or service, and the actual ability or means to provide it. One of the main features of agency agreement distribution agreements is that a distributor is an independent organization that, in its own name, buys and resells accordingly from the seller as a client. Here, the seller has no direct relationship with the customer through the distribution contract, although the seller conceded the software to the customer directly through an end-user license agreement. The dealer is one of the many labels you come across in this room. The other labels are “distributors,” “value-added resellers,” “partners” or “channel partners,” etc. all are expected to represent the role in a manner deemed appropriate for any type of market defined as a last resort by your target customers. None of the labels are necessarily used exclusively by the others and a dealer can be described of several of these species.
It is recommended that you get legal advice before an agreement is reached, not only in that country, but also by a lawyer in the distributor`s territory. But of course, another key element of a successful reseller agreement is good profitability. Of course, there are not necessarily strict and fast rules. But for the most part, it`s important to find enough protected margins for a partner to be profitable. If not, you expect sales without a bang. Creating a successful reseller agreement requires planning and strategy.