However, if reseller-customer contracts can be terminated or transferred to the seller with the termination of the reseller contract, the reseller should insist on the protection of a reasonable minimum contract term and a reasonably long notice period for innocent terminations that will follow the end of that minimum term. In some contracts, there may be compensation rules for resellers – for example, if reseller-customer contracts are transferred to the vendor, then the seller can start paying commissions to the reseller as if the reseller were a referral partner. In theory, the Internet allows customers to find products without the need for any intermediary (unless you count Google). In reality, the era of complete disintermediation has not yet arrived and may never do so. Intermediaries are always important. One of the most important types of intermediaries for a software provider is the reseller. However, it is important to know that there are two totally different types of resellers. One can be very useful for you as a software provider, the other is usually a pain in the back. They must be treated accordingly.
When appointing a value-added reseller, sellers should, as far as possible, clearly define the responsibilities of the vendor and the reseller. This type of reseller will often ask for a discount. Don`t give them. The real customer has probably already given him the order to buy your product, so a discount does not help to close the sale. The reseller can also collect the discount instead of passing it on to the customer. If so, calculate them more. Software reseller agreements are there to ensure that both parties comply with the end of the agreement. In this way, not only do these agreements ensure that the job is done well, but they also help to establish quality and long-term business relationships. As already said, it is essential to determine whether the reseller can use the company`s name, trademark and other intellectual property when reselling its software and services.
With regard to white label solutions, a reseller agreement should give the reseller the right to claim the products and services as his own and to market them under his own brand. Software reseller agreements may or may not be exclusive.