However, exclusive agreements do not mean that you are the only one who can sell the software. In most cases, they are defined geographically, meaning that only one reseller gets the right to resell to a given market, the U.S. says. In this case, other resellers are free to promote the same product for end-users in Europe. The more you come out of the reseller software agreement, the better. If you want to help end-users install the software, provide training and provide additional services, you need to know this from the start. Now that you know exactly what a software reseller contract should cover, you are at a stage in creating your own SaaS resale business. All you need now are high quality products that you can easily rename and sell like yours. Distributors vs.
White-label software resellers Otherwise, the software developer must determine whether the reseller can register domain names, company names and trademarks on behalf of the vendor. If they grant such rights to the reseller, the contract must also clearly define what happens to the intellectual property after the contract expires or that will be terminated by both parties. One thing to keep in mind here is that, regardless of its geographical location, the agreement should be in English. In some cases, the agreement can be translated into other languages, but note that the English version always takes precedence over all other versions. In theory, a distributor is the same as a dealer. The reseller or distributor will purchase SaaS software and services from the supplier under the terms of a reseller or sales contract. It is then sold to local customers within the dealer or distributor in its own terms and conditions and service level agreement, known as ALS. The crucial conditions that the agreement should cover include: terms such as agent, salespeople and resellers are often used interchangeably.
However, from a legal point of view, these are three totally different units, with specific rights and obligations. It is essential to distinguish and clearly define the responsibilities of each party involved. The software reseller contract should determine whether the publisher is required to offer the end user the maintenance or upgrade of the software, and whether there is a need to pay additional costs for maintenance or upgrade. Of course, the dealer will probably want to pass on additional charges to his customers. 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. One of the advantages of using an employee to sell software is that the employee focuses on selling the employer`s products – not on competitors. In addition, the employee will devote all his time to the sale on behalf of the employer. It goes without saying that the employer must bear the cost of the worker`s wages, benefits and expenses. In addition, the employer may be liable for injuries or damage caused by a worker. Finally, the employer could be responsible for complying with the labour laws, taxes and other laws of this foreign jurisdiction if the worker is based on a state or country outside the employer`s enterprise base by having a worker in the foreign jurisdiction. 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. The integration of a reseller gives you the opportunity to expand your business and reach a wider range of customers.