Negotiating Reseller Agreements

All reseller agreements differ depending on the product, services and parties involved. There are a few sections and general information that any reseller agreement should contain: there are two methods for formulating these agreements: we are not lawyers and we will only talk about the commercial aspects of partnership contracts. We urge you to work with your legal teams to make their agreements representative of the relationship you want with your partners. A SaaS reseller agreement is an agreement whereby a software provider known as the vendor gives the reseller the right to enter into contracts with customers or third parties in order to provide customers with the services provided by the vendor. A procedure for the dealer to enter into such contracts is indicated. A reseller agreement is a partner of two parties, usually a producer and a distributor. Both parties create a Betermser. In these terms, they describe the expectations and requirements of the partnership in the same way as a franchising model. If you are a Business Executive, there are many ways to negotiate these agreements with your distributors. In this article, we discuss the key bargaining conditions for reseller agreements and how you can make the most of them.

I wanted to share further thoughts on the resolution of the problems associated with reseller contracts. I saw that the weight was increased by the shoulders of clients and workshop participants with Tenego`s approach to partnership agreements. A seller may ask a reseller to compensate value-added services; However, if the seller is not willing to take advantage of an advantageous negotiating position, he can expect that such a request will be met with an equivalent compensation request for the seller`s services. Depending on the business, the purchasing process varies in each dealer agreement. Typically, the dealer gives an order to the manufacturer. Subsequently, the OEM or manufacturer has a set period of time to finalize the order. For technology service providers such as remote DBA, these orders are immediately complemented by automation. In both parties, you should negotiate terms that allow your company to respond in a timely manner to orders and requests.

You certainly want to have enough time to process orders from all your distributors without violating the terms of the reseller agreement. Suppose I am a software provider, and I agree to pay 25% commission to the reseller in terms of reselling my services. How can I protect myself from the fact that the reseller sells the services at a very low price? One possibility would be to specify that services must be resold at a certain price, or not below a minimum price – but that would be a (highly illegal) price fixing. I could count on the goodwill of the dealer, but I can actually be a misleading protection and, in any case, give the impression that there is a non-contractual agreement to set prices. 2) If your product offers an obvious competitive advantage to a reseller, you are in a good negotiating position for advances or minimum revenues for granting exclusivity. Unfortunately, we currently do not have any SaaS dealer agreements. In our next article, we`ll describe how Tenego Academy should help you establish your partnership agreement, set your dealer commissions, set business goals and prepare you for your partners` negotiations. One of the main causes that leads suppliers and distributors to disputes during termination is often a poorly formulated distribution agreement. Most of the time, litigation could be avoided through better contract design. Most sales contracts benefit from auditing by people with experience in establishing and negotiating contracts. Sometimes lawyers check contracts.

Sometimes sales managers with the distribution agreement check the experience in checking contracts.