An agent is the employee of a company responsible for selling the product. They work directly for the company and their job description includes making contact with potential customers and applying for their employer`s product or service. But from a legal point of view, it is essential to distinguish between a reseller and a salesperson. Although some resellers operate with commissions in which the software developer makes the agreement with the end user and grants compensation to the reseller, the main difference lies in the fact that the resellers are completely separate from the developers. In addition, the reseller must keep detailed records to ensure that they pay you correctly for your SaaS. You should have the right to check your books and get adequate support from the reseller after informing them. It`s a win-win situation. Developers don`t have to worry about marketing and intellectual property rights, while resellers get a great incentive to sell as many products as possible, since they build their own business. Some people also confuse distributors with agents. An agent is a company or person who acts on behalf of the supplier and finds leads. He or she may also help sell the provider`s SaaS software to customers located in the agent`s territory.
There is no legal relationship since there is no contract with the customer. Nevertheless, you should not be left to your own devices after a sale, especially if you sell recurring services. The provider must be ready and willing to intervene when the end user encounters a problem with their software or service. You should also be responsible for maintaining and updating the software. Their role as resellers should only be to resell the products and services. In addition to these problems, software reseller agreements are there to protect both parties from legal problems that can have more serious consequences, such as: resellers usually choose their own margins. The whole idea behind reselling a white label product is that you can determine the price point. This allows resellers to generate substantial revenue, as the difference between the purchase price and the selling price can be significant. Fortunately, there`s a simple way to avoid all of these issues and prevent your white label business from backslashing: software reseller deals. Before you sign a reseller agreement, it`s important to understand how you`ll be compensated for the sales you`ve made. Typically, a reseller`s profit is reduced to the difference between the initial price they paid for the software or license and the price they charge end users. This is called Margin.
These are best suited for high-level transactions with clients known as « SMEs ». If the reseller wants to use a top down agreement with corporate customers, the agreement cannot be too unbalanced. In addition, it must contain all the standard compliance rules that await this type of customers, such as: Non-exclusive agreements are therefore much more frequent. You are a risk-free option for the software developer, as they do not need to rely on the performance of a single reseller, but generate revenue through hundreds of different resellers. Reseller needs access to your intellectual property (IP), including software licenses and licenses to use your trademarks. You might want to limit how the reseller can use your IP to market and promote your SaaS to make sure it`s compliant with your brand.