What is a reseller agreement?
A reseller agreement is a legal contract that outlines the relationship between your company and the resellers who plan to sell or distribute your products or services. This agreement safeguards your interests while also setting clear expectations for the reseller. With a clear agreement, your partnership can operate more smoothly and transparently, reducing the potential for conflicts and legal issues down the road.
Your reseller agreement will generally cover the following points:
- Roles and responsibilities: Details your respective and shared responsibilities within your partnership, like support, training, sales targets, and more.
- Resale rights: Defines the terms under which the reseller can sell or distribute your products or services.
- Pricing and payments: Specifies the pricing structure, payment terms, and any discounts available to the reseller.
- Territory: Outlines the geographical area where the reseller is permitted to sell your products or services.
- Confidentiality: Establishes the handling of proprietary or sensitive information.
- Term and termination: Sets the duration of the agreement and conditions for termination.
A strong reseller agreement is the backbone of a successful, long-term relationship between you and your resellers. Always work with your company’s legal team to draft this important document.