What is a SaaS reseller agreement?

What is a SaaS reseller agreement?

A SaaS reseller agreement involves a software services provider, known as the vendor, granting another business, the reseller, the rights to enter into a contract with a third party (customer) as the principal for providing the vendor’s services to the third party.

How do SaaS resellers work?

SaaS Resellers It works by having your business customers package your SaaS product as an essential add-on product for their own service. Second, the fact that you are essentially outsourcing sales work to people that have their own network means that the cost to your business is extremely low.

What should I look for in a reseller agreement?

The essentials every software reseller agreement should cover include:

  • Applicable law.
  • Ownership terms.
  • Intellectual property rights.
  • Payment terms.
  • Software maintenance and updates.
  • Additional services.

What is a white label agreement?

A white label agreement is one that is created for the purpose of manufacturing of generic products by one party to be branded for and sold by another party.

Why do companies use resellers?

The purpose of resellers and why companies use them A key reseller role has been order fulfillment: The customer goes to a reseller to simplify the ordering process and offload procurement and order processing tasks. Working with a reseller can also streamline product sourcing.

How do value-added resellers make money?

The profit for a VAR business is typically at sourcing. Distributors run promotions and deals, that help the VARs make their money. For example, a distributor may offer one laptop free on the purchase of 10, free shipping or bulk deals.

Is it better to be a distributor or reseller?

resellers have a lower incentive to distribute your products when compared to a distributor because they take a commision of the sale price instead of purchasing and holding your products; and. increased inventory risks for your business.

How much Commission should we give to a SaaS reseller?

Commission for a SaaS reseller will range from 10–40% depending upon the scope of reseller’s work. If it’s restricted to just finding the opportunity and handing it over the SaaS vendor for further action, commission would be closer to 10%.

What are the types of SaaS agreements?

There are two basic types of SaaS agreements for users, depending on how they’re used and what the market expects and will accept. If your SaaS service is at a relatively low price point, and you want to contract online, the so-called “click-wrapped” agreement is the right approach. The click-wraped agreement is presented online, usually in a scroll box, as part of the registration process.

What is Saas contract?

A SaaS agreement is a legal contract between a developer of the app and user using the app. The SaaS Agreement is a Terms and Conditions or Terms of Service for SaaS apps.

What is a SaaS software license agreement?

A SaaS software license agreement is used when a company’s proprietary software is being licensed to a licensee. This tends to differ from a regular SaaS agreement, which doesn’t include a software license.