A Reseller Agreement is a formal legal contract that outlines the terms, pricing structures, rights, and responsibilities governing the relationship between a vendor and a reseller. It clearly defines how products or services are purchased, resold, supported, and renewed, ensuring both parties understand their obligations and expectations for driving mutual success.
Key components of a Reseller Agreement often include:
- Pricing and Discount Terms: Clear definitions of wholesale purchase prices, retail pricing guidelines, allowable margins, and volume-based discount structures.
- Sales and Territory Rights: Specifications regarding where and to whom the reseller is authorized to sell, and whether exclusivity applies within certain regions or segments.
- Support and Service Responsibilities: Outline of who is responsible for customer onboarding, technical support, training, and warranty services.
- Renewal and Subscription Management: Processes for handling customer contract renewals, subscription billing, and account ownership post-sale.
- Intellectual Property and Branding: Guidelines for the use of the vendor’s trademarks, logos, and marketing materials in reseller activities.
- Performance Expectations and Termination Clauses: Minimum sales targets, reporting requirements, and conditions under which either party can terminate the agreement.
Reseller Agreements are essential in SaaS, technology, manufacturing, and service industries where third-party partners extend a company's sales reach. They create a structured, enforceable foundation for collaboration, ensuring smooth operations and minimizing future disputes.