Defining Roles and Expectations in a Software Resellers Agreement

by | Oct 11, 2023 | Business, Contracts, Featured, Law, Technology

Defining Roles and Expectations in a Software Resellers Agreement


Imagine a software developer who has created an innovative and complex software solution. They have invested time, effort, and resources in its development and now want to expand their market reach. This is where a reseller comes into play. A reseller can be an individual or a company with a network, expertise, and reach that the developer might not have. However, without clear roles and expectations outlined in a Software Resellers Agreement, the partnership can quickly become a source of frustration and conflict.


1. Clarifying the Scope of Authority:


The agreement serves as a blueprint for what the reseller can and cannot do. It specifies the geographic areas in which they can operate and the target market segments they can target. This clarity ensures that the reseller does not overstep their boundaries and, conversely, that the developer does not restrict them unnecessarily.


2. Product Line Definition:


It’s essential to specify which software products the reseller is authorized to sell. This avoids confusion about whether the reseller can promote all the developer’s software solutions or only specific ones. For instance, the developer might have a suite of software products, and they may want the reseller to focus on a particular one.


3. Sales and Marketing Strategy:


The agreement should outline the sales and marketing strategies that the reseller is expected to employ. This can include details about sales targets, marketing activities, and promotional efforts. Having these expectations in writing helps the reseller understand how they should market and sell the software, which, in turn, ensures that the developer’s brand and reputation are maintained.


4. Customer Relationship Management:


A crucial aspect of the agreement is how the reseller should handle customer relationships. This could include how they respond to customer inquiries, handle complaints, and provide support. By specifying these aspects, the developer can maintain control over the quality of customer service and support, which is vital for user satisfaction.


5. Reporting and Communication:


Effective communication between the developer and the reseller is key to a successful partnership. The agreement should outline reporting requirements, such as the frequency and format of sales reports or updates on market conditions. This ensures that the developer remains informed about the progress and challenges faced by the reseller.


6. Handling Leads and Prospects:


If the developer generates leads or prospects for the reseller, the agreement should detail how these are transferred and managed. For instance, what happens if the developer provides a list of potential customers? Defining this process prevents disputes and lost opportunities.


7. Exclusivity and Non-Compete Clauses:


In some cases, the developer might want to grant exclusivity to a reseller in a particular region or market segment. The agreement can specify if the reseller has exclusive rights and if there are any restrictions on the developer from selling to competitors. These clauses can have a significant impact on the reseller’s expectations and strategy.


By clearly defining these roles and expectations, a Software Resellers Agreement ensures that both parties are on the same page. This reduces the chances of misunderstandings, conflicts, and missed opportunities. It also allows for a more efficient and collaborative working relationship that benefits both the developer and the reseller, ultimately leading to the successful distribution of the software.

NIK ERMAN NIK ROSELI Commercial Lawyer

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