What is a software reseller?

If you're in the market for a new tech product or service, chances are that it's available as a subscription - whether on your computer at home, on someone else's server somewhere out there online, or even through a hosted solution like AWS. The key difference between these options is who owns them. If they're yours, then you have full rights over how much you pay each month (or year) for access to those services. If they belong to someone else, however, you don't own anything; instead, you simply rent access to their products.

In this case, the owner/provider of the software is known as the "software company" while the person renting access to it is called a "reseller." These two terms are often used interchangeably, but if we dig deeper into what exactly a reseller does, it becomes clear that there are some important differences. So let's take a look!

Why do software companies use resellers?

The short answer here is that it saves money for both parties. For one thing, because they aren't spending time and energy building sales teams, marketing campaigns, customer support systems, etc.; all of which cost money. Instead, what they need to focus on is actually creating and selling the actual product itself. And since many businesses can only afford so much staff and resources, having another party handle the sale side means less overhead costs.

However, from our perspective as consumers, it seems strange that someone would buy something without owning it themselves. After all, wouldn't it be better to just get everything directly from the source? Well, yes, it would. But sometimes it doesn't make sense financially. Perhaps the seller already has too many customers or isn't able to sell enough units per month to justify hiring additional help. Or maybe it'll just save everyone time by getting things done faster. Either way, when it comes down to it, a lot of people will opt for the cheaper option.

So why not go straight to the source yourself? It turns out that most software providers won't allow it. There are several reasons for this, including legal issues, licensing restrictions, and brand protection. In other words, it could damage their reputation if you tried to purchase their products direct.

Instead, resellers come in handy for three main purposes:

They act as middlemen between buyers and sellers, taking care of the administrative details such as billing, payments, shipping, and returns.

They provide extra security for the buyer. By using a third-party provider, the buyer can feel confident knowing that his data is safe with the seller. This also gives him more flexibility should he ever want to switch vendors later on.

They offer discounts in order to entice potential customers. Many times, developers will give special deals to resellers in exchange for promoting their products. While this may seem unfair to regular users, remember that it was probably easier for them to acquire the first license than it was for the developer to create it. Resellers generally work hard to keep prices low, especially during seasonal periods where demand spikes. They'd rather lose a few dollars now than risk losing thousands of customers later. That said, you might still see some higher prices around holidays or peak seasons. Just know that you're paying a premium for convenience.

What is an example of a reseller?

You've likely heard of a few different ones before, but here are a few quick examples to familiarize you with the concept.

Amazon Marketplace: Amazon sells millions of items every day and operates a marketplace where anyone can upload and sell their wares. However, if you're looking for something specific, it's usually best to contact the vendor directly. You can either search for it on Amazon or check its listing page.

Microsoft Store: Microsoft offers a similar storefront for Windows 10 devices, which includes apps, games, accessories, and hardware. Again, though, you shouldn't expect any real savings unless you're buying a high volume of products or live within driving distance. Otherwise, you're better off contacting the manufacturer directly.

Google Play: Google runs a store for Android apps, games, movies, music, books, audiobooks, and TV shows. As long as you're willing to put up with ads, it's easy to browse and download anything you want.

Apple Appstore: Apple's app store is pretty self-explanatory. All iOS applications must pass review and approval processes before being released, making it very difficult for non-developers to publish anything.

These are just a handful of examples, but they show us the wide variety of ways resellers can play a role in the technology industry. Of course, none of these scenarios really apply to us as individuals. We tend to deal with smaller purchases and aren't interested in buying hundreds of copies of the same item. Instead, we rely on resellers to provide us with whatever we need, whenever we need it.

Who is considered a reseller?

Anyone can become a reseller, regardless of experience level. Even if you haven't worked in the IT field before, you can learn quickly and start offering your services today.

To qualify as a reseller, you must meet certain requirements based on location and type of business. Here are the basic guidelines for determining eligibility:

Resellers located outside the United States cannot receive government rebates or tax benefits.

Resellers in California must register with the state prior to becoming eligible for any state incentives.

Resellers in New York State must obtain a certificate of registration, which requires proof of the number of annual transactions made, the total revenue earned annually, and the amount of gross profit earned.

There are also other rules pertaining specifically to software resellers, but you can read about them elsewhere. Since resellers fall under the category of distributors, they must follow the same regulations as other entities in that regard.

What are types of resellers?

Now that we understand what resellers do and who qualifies as one, we can discuss what kind of agreements exist between the two parties involved. Let's break down the five major types below:

Software Licensing Agreements: A common form found among larger organizations, a licensing agreement can specify the duration of a contract as well as conditions for termination. It covers the exact scope of usage and ownership of a particular piece of software.

Software Subscription Agreement: Similar to a licensing agreement, a software subscription allows you to subscribe to a set of services provided via a monthly payment plan. Unlike regular subscriptions, however, it grants you the ability to cancel anytime and continue using the application indefinitely until you decide otherwise.

Service Level Agreement: Sometimes referred to as SLAs, this document specifies the minimum performance standards that a reseller must maintain throughout the period of the contract.

Hardware Sales & Service Agreements: Also known as HSSAs, this document governs the relationship between the end user and the reseller regarding the latter's provisioning of hardware and maintenance of equipment.

Value Added Reseller Agreement: VARs are generally small businesses that specialize in providing technical assistance to clients. They typically perform tasks such as installation, configuration, troubleshooting, training, and deployment. The primary benefit of working with a VAR is that you can avoid dealing with large corporations altogether. Additionally, since they specialize in a single area, they're able to cut back on unnecessary expenses and offer competitive pricing.

When negotiating a reseller contract, it's always helpful to consult an attorney to ensure that nothing gets left out. Some contracts require signoffs from multiple parties, meaning that you may need to bring in lawyers representing both sides to finalize the agreement.

While software resellers certainly aren't the only players in the world of technology, they're definitely worth keeping tabs on. With nearly $1 trillion spent globally on information technology alone, it makes sense that they'd grow rapidly alongside the rest of the sector. Plus, given that they operate mainly online, they can easily reach a global audience. So whether you're shopping for a new laptop or trying to secure affordable cloud storage space, consider partnering with a reputable reseller to simplify the process.

For more information on finding a good partner for your next project, check out our guide to choosing the right contractor for your needs.

Are you considering becoming an independent or third party vendor for your favorite apps? If so, then you may want to consider the benefits of becoming a software reseller. As a reseller, you can sell access to multiple vendors' products at discounted rates in exchange for providing support services like maintenance contracts, upgrades, and implementation help.

In this article we'll explain what it takes to become a reseller and provide some real world examples from our own experiences as well as those from other industry professionals who have done it successfully.

What is a retailer vs reseller?

If you've ever been shopping online, you've probably seen "retailers" that offer their wares through websites where they take payment via credit card and ship items directly to customers. These are often referred to as brick-and-mortar retailers. Sometimes these sites will also accept payments by PayPal (a form of electronic banking). Retailers do not typically buy goods wholesale but rather purchase them from manufacturers on behalf of the end customer. Some retailers even operate within physical stores themselves. While these types of businesses exist, most people think of retailers when referring to businesses selling product over the internet. The term'reseller', however, actually refers to any company that sells something else's product without owning its inventory itself. For example, if I wanted to start my own grocery store, I could either open up a shop with my own inventory (i.e. buying all of the groceries myself) or I could work out a deal with another grocer to allow me to stock their shelves. In both cases, I would still need to pay rent and keep track of payroll taxes, but now I'm working for someone else instead of doing everything myself. This type of arrangement is known as a resale relationship. A similar concept exists between software vendors and resellers.

There are many reasons why a reseller might choose to partner with a different vendor than the one that originally sold him/her the software license. Perhaps there was a special promotion running during that time period and the new vendor offered a better price. Or perhaps he/she wants additional features beyond what the original vendor offers. Whatever the case, partnering with a software reseller allows you to get access to the latest version of software while avoiding paying full retail pricing. It also gives you the opportunity to share revenue with the original author of the software.

What IT means to be a reseller

The most important thing about becoming a reseller is having the right mindset. You must understand that although you're working with a separate vendor, you aren't just adding another line item to your monthly budget -- you're taking on added responsibilities. So before agreeing to sign anything, make sure you fully grasp exactly what you're getting into.

When you decide to become a reseller, you should first consult with your legal team to ensure that you are legally able to do so. Additionally, you should discuss the terms of your contract with the manufacturer so that you know exactly what you're signing away. Finally, you should research your market thoroughly because you don't want to end up with clients that you can't service. Many resellers fail simply due to poor marketing. They assume that every client is going to love their products and services, which isn't always the case. Make sure you know your competition inside and out so that you can create a winning strategy. Once you feel comfortable with your understanding of all of the above, move forward with negotiations.

What does being a reseller mean?

Once you've decided to go down the path of being a software reseller, you'll need to establish yourself as such. Your goal here is to differentiate yourself from other sellers by offering unique solutions to problems that others cannot solve. To achieve this, you'll need to learn how to properly package your offerings and present them to potential buyers. As part of this process, you'll also need to develop a website dedicated to showcasing your expertise. Most importantly, you'll need to build relationships with distributors, agents, and other resellers so that you can leverage each other's strengths. By being involved in several channels simultaneously, you'll increase your chances of finding qualified leads.

Many resellers begin by building a mailing list of contacts that they use to send emails promoting their products. Other times, they focus on developing strong social media profiles. Regardless of whether you choose to approach prospects using email or Twitter, remember that you need to remain consistent throughout your entire marketing campaign.

Another way to stand apart from your competitors is to offer specialized training programs. Resellers sometimes realize that they lack certain skills necessary to effectively run their business, so they hire experts to train them. Not only does this give them a competitive advantage against their peers, but it helps them attract quality clients.

Finally, you should spend some time researching the best methods of generating leads. Although cold calling remains popular among many resellers, today nearly everyone uses lead generation tools to reach out to prospective clients. There are numerous ways to generate high-quality leads, including search engine optimization, content creation, and paid advertising campaigns.

How does a reseller make money?

Reselling software doesn't come cheap! Depending upon your location, you may be required to invest thousands of dollars upfront in order to cover costs related to opening a storefront. On top of that, you'll need to set aside funds to maintain your business operations. Fortunately, though, once you have established yourself as a reputable seller, you'll eventually see profits return to your bank account. Here are a few factors to keep in mind regarding making money as a reseller:

1.) Licensing fees - You'll likely receive licensing fees whenever you add a specific piece of software to your portfolio. When negotiating licensing agreements, you should make sure that you clearly define the number of users allowed under each plan. Don't forget to include discounts for volume purchases. Also note that you won't necessarily earn commission based solely off of sales made through your website. Instead, you'll earn commissions after the sale has occurred. However, if you have a good record of converting traffic into sales, you may qualify for increased bonuses.

2.) Upgrades - You'll usually receive a discount for upgrading existing accounts. Of course, you may opt to upgrade all of your customers at no cost depending upon the nature of the software. Either way, make sure that you negotiate a fair rate for maintaining your client's systems.

3.) Support fees - Every year, you'll incur expenses related to keeping your servers operating smoothly and efficiently. And since you'll be handling technical issues, you'll always be responsible for fixing them. Keep in mind that you will never receive monetary compensation for resolving user complaints. But if you perform consistently well, you may earn bonus incentives.

4.) Marketing & Advertising Fees - Like all forms of digital marketing, you'll need to put forth effort towards establishing yourself as a credible brand name. Whether you advertise through traditional print ads, search engines, or social networks, you'll need to devote resources toward bringing in new customers.

5.) Subscription fees - Since you'll be managing ongoing subscriptions, you'll need to factor in the recurring costs associated with billing and collecting payments.

6.) Customer acquisition costs - Even if you acquire 100% of your customers through organic searches, you'll still need to allocate funding to marketing efforts.

7.) Sales commissions - Just like retailers, resellers tend to earn a percentage of the total amount charged to each client.

8.) Services fees - Whenever you install a system, you'll charge extra to handle routine tasks like setting up backups and performing regular updates.

9.) Training sessions - As mentioned earlier, you may occasionally require professional assistance in order to succeed in your career. Therefore, you'll need to budget accordingly.

10.) Taxes - Every month, you'll have to file quarterly corporate income tax returns. Plus, you'll owe federal employment tax on wages earned.

Software ONE is a global leader in cloud computing technology. With offices across North America, Europe, Asia Pacific, Latin America, Africa and the Middle East, Software One provides powerful, secure solutions to small and large enterprises alike. Our award-winning platform includes robust enterprise applications, mobile platforms, collaboration and productivity suites, security and risk management capabilities, managed hosting options, and disaster recovery solutions. We invite you to explore SoftwareOne.com and discover the possibilities.

Software as a Service (SaaS) is one way for businesses to outsource their IT needs without having to invest heavily into hardware or personnel. The best part about this model is how easy it can be to implement. It's also important to note that SaaS isn't just for small-to-medium sized companies anymore -- even large corporations have adopted the technology.

While there are many different types of agreements used by organizations when outsourcing services, the ones we're going over today focus on the relationship between two parties: you and your client. These agreements outline the terms under which you will provide resources such as software licenses or cloud storage space. This article explains exactly what an SaaS reseller agreement looks like and what you need to consider while drafting yours. Here's everything you need to know before getting started!

Are resellers legal?

It depends. In some states, buying and selling digital goods is illegal due to state laws around intellectual property. However, most countries don't restrict resale from within their borders. For instance, the United States doesn't prohibit individuals from reselling items they buy at retail stores. They do however require sellers to register with local authorities if they want to sell online or via mobile device.

The same goes for SaaS. While not all jurisdictions allow it, there are still plenty of places where you can legally sell software subscriptions. Before signing any contracts though, make sure to check whether your location falls under these rules. If so, ensure that your contract includes language outlining the responsibilities of both you and your customer regarding copyright infringement.

What is a SaaS reseller agreement?

If you've decided to become an authorized reseller of software products, then you'll probably need to sign up with a company that sells them. You may already own a copy of those products but you won't be able to use them unless you pay fees every month. An "authorized" reseller essentially means someone who has been granted permission to sell and distribute copies of a product. In other words, they're allowed access to a license key which allows them to install the software and give customers access to it through a web portal.

In order to get this authorization, you must first purchase a subscription plan from a vendor. Once you've done that, you'll receive an email containing information on how to download and install the software onto your computer. After doing this successfully, you'll be given a unique ID number that you can share with potential clients. When a new account comes along, you simply enter the ID code and voila! Your customer gets full access to the application.

This process works great for both sides involved. Customers only spend money once because they don't need to continue paying each time they add more users. On top of that, vendors gain additional revenue since they aren't forced to deal with maintenance costs. What's more, they don't need to worry about ensuring enough servers are available for everyone to log in at once. Instead, they can concentrate on building better applications instead.

As a result, reselling SaaS products is often seen as a win/win situation. But there are certain factors to keep in mind during negotiations. First off, you'll definitely want to include terms that define ownership of data stored on your server and prevent anyone else from accessing it. Second, you'll want to think carefully about what happens when you stop working with a particular client. Will you hand over control of their accounts to a third party? How long will you retain the right to manage their files? And finally, remember to take care of yourself too. By creating a fair contract, you'll avoid becoming embroiled in lawsuits later down the line.

What does SaaS agreement mean?

When you create a reseller agreement for SaaS apps, you basically tell your prospective client how much they'll be charged per year and that they'll receive a set amount of usage. Depending on what kind of app you're offering, you might charge anywhere from $10-$100 per user per month. As mentioned earlier, you'll usually have to pay upfront for the initial licensing fee and monthly payments thereafter. Some vendors offer payment plans for larger purchases.

Once you complete the paperwork, you'll send it back to the person who hired you. He or she will review it thoroughly and either accept or reject it. If they accept it, you'll officially begin providing support for their business.

What should be included in a SaaS agreement?

There are several things you'll likely want to discuss with your future client before they agree to sign anything. Make sure you cover the following points:

-- Payment options: Are there ways to spread your cost over multiple years? Is there a minimum annual commitment required? Do they have the option to prepay for three months at a time?

-- Accessibility: Who controls the login credentials? Can the client change his password whenever he wants? Does he have unlimited access to the system?

-- Data ownership: What happens if the client stops working with you? Will you transfer ownership of their files to another individual or entity?

-- Licensing restrictions: What limits exist on the type of software you can supply? Can you work with closed source solutions? What about customizations?

These questions are especially relevant for larger companies that rely on proprietary software. They could decide to hire a consultant instead of purchasing a license outright. Also, some people prefer to maintain their own systems rather than handing over their responsibility to others. Whatever the case may be, it's good practice to write down your expectations clearly beforehand. That way, you won't end up disappointed after making an investment.

Finally, if you haven't yet figured it out, you'll need to come up with a name for your enterprise. You can always call it whatever you'd like but it pays to choose something catchy. Think about how you would describe your organization to a friend. Would you say "we're a website design firm"? Or maybe "the company behind our awesome WordPress blog"? Now imagine telling your friends "I'm the guy who runs [your chosen name]." Sounds professional, huh?

The term "software" can refer to any type of computer program used for business or personal purposes. These programs are commonly sold through third-party distributors who sell them directly to end users (you) as well as other companies looking to buy these products on behalf of their customers.

If you're working with a company selling software, it's important to have a contract outlining your relationship so both parties know how they will interact when you work together. This document ensures that everyone involved understands exactly what each person has agreed upon. If there's ever a dispute about something, this document provides clarity.

In this article, we'll look at some common terms related to buying and selling software. We'll also explain what a reseller agreement is and why you need one if you want to purchase software from someone else.

What is the purpose of a reseller agreement?

Before purchasing anything from a distributor, you'll likely contact them for more information. Most salespeople will ask you questions such as whether you've purchased anything before, where you live, and which products interest you most. They may even offer you samples to test out first. Asking these types of questions helps them better understand what kind of customer you might be, but it doesn't necessarily mean much.

When you sign up with a new vendor, they'll often send you paperwork called a Terms & Conditions Agreement. You'll agree to follow all of the rules outlined in this document without question. The problem comes when the seller makes changes to the T&C after you've signed off on them. It's not uncommon for sellers to make minor edits here and there, adding additional clauses or making small tweaks, then sending you the updated version.

This isn't ideal because you never really had a chance to read over the entire thing. Plus, sometimes the updates aren't obvious, making it difficult to find the clause that was added later. When you receive multiple versions of the same document, you don't have enough time to go back through everything and figure out what changed. Instead, you simply accept whatever the latest version says. Unfortunately, this leads to confusion among clients and partners alike.

To avoid this issue, vendors typically create a Reseller Agreement instead. A reseller agreement takes into account every single change made by the original seller and explains what those changes mean for you. In addition, a reseller agreement spells things out in plain English rather than leaving it vague like the Terms & Conditions does.

For instance, let's say you were asked to provide proof of income during the initial stages of negotiations. With a Terms & Conditions Agreement, the seller would merely tell you to bring documentation proving your income, and you'd assume that meant you needed to show ID. But under a reseller agreement, the seller could actually require you to prove your identity. That means you won't just hand over your driver's license or passport to the seller, but you'll need to go get copies of the documents yourself.

What is a reseller agreement?

Now that we've explained what a reseller agreement is and why you need one, we can talk about what it looks like. Typically, a reseller agreement includes several sections covering different topics. Let's take a quick look at some of the key points below.

It's always best practice to include a copy of the actual document along with the terms listed above. While many people think that a lawyer only needs to review the terms once, doing so again is still helpful. Sometimes, details aren't immediately clear the second time around. For example, you may notice that the language is slightly altered in one section of the document while the rest stays unchanged. After reviewing the full document, you might realize that the alteration wasn't significant enough to warrant changing your decision.

You'll probably use the following terms fairly frequently throughout your relationship with the seller. So having them written down in black and white allows you to quickly reference them whenever necessary. Here are sample paragraphs from a typical reseller agreement template.

What should be included in a reseller agreement?

So far, we've looked at the basic format of a reseller agreement and discussed its benefits. Now, we'll discuss the specific items that should be included within a legally binding document.

First, you'll need to specify who owns the product(s). Make sure you clarify ownership early on so neither party gets confused about who ultimately controls the item being sold.

Next, you must outline the services provided by the reseller. Remember that you're paying money upfront regardless of whether the sale goes through. Therefore, the reseller agreement is crucial for defining what you expect in return. Many times, agreements stipulate certain features or functions that come standard with the software package. Other times, the seller offers extra support beyond the scope of normal duties. Either way, it's essential to clearly define your expectations right away.

Finally, the reseller agreement needs to spell out the payment method. Some businesses prefer cash payments while others prefer checks or credit card transactions. Again, this step serves two main purposes. First, it keeps track of funds moving between the buyer and seller. Second, it prevents problems down the road.

For example, imagine that the seller sends you a check because you didn't pay via credit card initially. Then, three months pass and your bank finds the amount due on the statement to be incorrect. By specifying a particular form of payment upfront, you prevent these kinds of errors from happening.

Most importantly, though, a reseller agreement defines your role as a partner with the seller. Without one, buyers risk getting screwed over by dishonest sellers trying to steal their hard-earned dollars. Having a formalized relationship protects you against unscrupulous behavior.

What is the difference between a reseller and an agent?

There's no denying that agents and resellers serve similar roles. Both represent vendors and help move their merchandise across borders. However, there are some subtle differences worth noting.

An agent usually works directly for the manufacturer or developer. He or she sells the product directly to end consumers, taking care of shipping costs and keeping inventory stocked. Agents generally earn commissions based on gross revenue generated by individual units.

On the other hand, a reseller represents a larger group of individuals who act independently. Each reseller negotiates his or her own deal with the supplier based on supply and demand. Resellers generally do not handle shipping or inventory management tasks. Rather, they focus almost entirely on marketing their wares and finding potential customers.

Resellers often charge commission fees ranging anywhere from 10% to 30%. On average, however, a 20% fee seems to be the industry norm. Keep in mind that this rate varies depending on the size of the transaction. In general, smaller deals tend to cost less per unit. Larger orders command higher fees.

Many developers rely on resellers to market their software packages. Since there's already a large base of consumers ready to pick up their goods, reselling becomes easier. Also, since resellers aren't tied to one provider, they can easily switch suppliers. And finally, unlike agents, resellers aren't beholden to the whims of a single corporate entity.

These factors allow resellers to negotiate favorable rates from various manufacturers. To learn more about reselling software, see our guide detailing the steps required to become an independent reseller.

Software as a service (SaaS) has become one of the fastest growing industries in recent years. With new vendors popping up every week, finding out who you can trust with your data can get tricky.

But while there are plenty of options for cloud computing services, many people still aren't sure about the role that resellers play in this space. So here's our 101-style guide on what exactly makes someone a reseller -- and whether or not they're actually allowed to sell SaaS products at all.

Is Amazon a reseller?

If you've ever seen an Amazon product ad on TV, then yes, Amazon is technically a reseller. But we'll explain why that doesn't mean much when it comes to selling cloud solutions.

Amazon does have its own brand of SaaS, which includes everything from e-commerce platforms like Amazon Web Services (AWS), to customer relationship management tools like WorkPlace by Amazon, but these offerings don't fall under the umbrella of "reselling" because they come directly from Amazon itself instead of third party providers.

In other words, if you see something like "Get 50 free hours of AWS Training," that's coming straight from Amazon, rather than some sort of middleman or vendor. The same goes for Kindle books, Amazon Prime Video subscriptions, and so forth.

So even though Amazon may be using the term "third-party reseller" to describe their relationships with partners such as Microsoft and Adobe, it really just refers to those types of direct sales. If you want to use Amazon's branding on your website, however, you should probably avoid calling yourself a reseller altogether.

What it means to be a reseller

Resellers often act as intermediaries between customers and vendors, facilitating transactions through a variety of methods including websites, phone calls, faxes, email messages, physical meetings, etc. Resellers typically take commissions based on the amount of money transacted with them, although some may require additional fees depending on the type of transaction.

The exact definition of a reseller varies slightly across different countries, states, and regions. For example, California defines anyone who sells goods in bulk as a reseller, whereas New York only allows businesses to operate as intermediaries between manufacturers and retailers. However, most jurisdictions allow these terms interchangeably without any major legal implications.

One thing that's important to note is that unlike traditional retail stores where sellers must pay rent on the storefronts themselves, online resellers do not need to cover real estate costs. Instead, they charge a percentage of the total revenue generated each month, similar to how commission agents work.

As long as you follow proper licensing agreements and procedures, resellers can offer SaaS programs to clients without having to worry too much about getting sued over copyright infringement or trademark violation. This is especially true for smaller firms that might not otherwise know how to navigate the complicated world of intellectual property law.

Is being a reseller illegal?

While some governments may prohibit certain aspects of this kind of business practice, others will consider it perfectly acceptable. Whether or not resellers are legally allowed to sell SaaS applications depends largely upon local laws and regulations.

For instance, in the United States, federal law prohibits selling items that infringe copyrights unless permission was obtained first. In addition, state and municipal laws also exist to prevent copyright violations. As far as trademarks go, if a company wants to make a name for itself in a particular market, they usually have to register their mark before doing anything else.

These rules apply regardless of whether or not you're offering SaaS products via a reseller arrangement. Even if you're operating as an independent contractor, you'd better keep track of who owns your IP rights, since you could end up facing hefty fines if things turn sour.

That said, the legality of reselling SaaS apps isn't always cut and dry. A few factors determine whether or not your actions constitute a crime, such as whether or not you were paid for your services. Because it's difficult to prove intent behind specific cases of alleged theft, courts tend to err on the side of caution by allowing defendants to claim ignorance.

Another common misconception around reselling is that you're required to purchase a license for any software that you sell. That is simply untrue. You can buy a single copy of whatever program you want, then resell that license to another individual or firm for profit. Just don't try to pass off your wares as official versions of the original software provider. Doing so would likely land you in hot water anyway.

There are several ways to find out if you're breaking any laws in your area. One option is to check local government resources specifically geared towards preventing counterfeiting and piracy. These sites contain information on how to identify fake products, file complaints against counterfeiters, and provide tips on how best to pursue lawsuits. Another option is to reach out to your local trade association for guidance. They can help point you toward relevant organizations within your jurisdiction that specialize in protecting intellectual property rights.

Finally, it's worth noting that the U.S. Copyright Office does accept petitions for exemptions from restrictions placed on resale activities. Most notably, this covers digital content that's been orphaned due to technological limitations, such as music recordings made prior to 1972.

If you feel you're being unfairly targeted by authorities, contact an attorney immediately. It's possible that your case may qualify for special consideration because of unforeseen circumstances. Otherwise, you can opt to fight back on your own behalf. There are multiple strategies available to defend your interests in court, and you may decide to hire a lawyer to represent you pro bono until you find a reputable professional willing to take your case on contingency.

Regardless of what happens next, remember that you shouldn't let fear stop you from pursuing your dreams. Being proactive and taking action whenever necessary is key to success. And no matter how bad things seem right now, you never know when a change in fortune might happen.

How do I become an independent software vendor (ISV)?

If you're interested in becoming an ISV for any particular niche or product, it's important that you understand what makes them tick so you know whether they'll be able to meet your needs.

Before signing on anyone, make sure you've done enough research into their business model. If you don't have experience selling online services, then consider partnering with someone else who does. You may also find a partner within your company if possible.

You should ask yourself questions such as: How much money will this person need from me each month? Will my sales go down after the first few months? What happens when we lose our main customer? Are there other companies like ours already doing this work? Is it worth the risk to start something new? And finally, how do I feel about working with another human being?

Make a list of all the things you'd want to sell through your website. Then figure out which ones are most profitable. Do some market analysis by looking at competitors' websites, reading industry articles, talking to others to see what they think about these products/services, etc. Don't forget to include everything you would ever buy from those types of businesses - not just the parts of the site that focus specifically on your chosen category.

A Software as a Service (SaaS) or subscription-based product can be licensed to multiple users through an online portal. A Software Reseller Agreement will help you understand how these products are sold on your behalf. It's important for both parties involved in the transaction to have a clear understanding of their obligations under this contract.

In addition to defining the terms of sale, it also sets out the rules governing the relationship between the parties. You need to know the terms and conditions before signing up with any company selling SaaS or other subscriptions.

Read our article on the best ways to sell SaaS services if you're considering starting your own business.

What is a software reseller agreement?

Software resellers are companies who purchase licenses from vendors and then offer them to clients under different name, brand, package or pricing structure. The term "software" refers to computer programs or applications used by businesses to perform certain functions like payroll processing, customer management, inventory control, etc.

The process of buying and selling such software includes various agreements including licensing agreements which define the use of the software. When the vendor sells the software to the buyer, they include a number of contractual clauses along with it. These contracts govern the way in which the software should be used and the liability associated with its misuse.

These agreements specify the terms of payment, warranties, support, maintenance, upgrades, data protection and copyright issues among others. They ensure that all parties involved benefit equally and that there are no disputes later.

There are many types of software reseller agreements available across the world ranging from standard forms to customized ones based upon the needs of each client. Some examples include:

White Label License - This type of agreement allows customers to customize the look & feel of the software products without having to change the core functionality. There are several advantages of using white labels over traditional branding strategies. White labeling helps reduce costs because it does not involve expensive design work, marketing efforts or other expenses. Moreover, it creates more flexibility since changes can happen at any time.

Service Level Agreements - In case of any issue related to the software, the service level agreement provides compensation mechanisms for the breach of warranty. For instance, when a client has problems installing or fixing the software during installation, he/she may file a claim against the supplier. The service provider must resolve the problem within 72 hours otherwise, the client can choose to take his/her money back.

Resell Rights - This kind of agreement gives the right to the reseller to market, distribute and provide technical support for the purchased product.

Authorized Reseller - This kind of agreement grants only specific permission to act on behalf of the seller. If you want to become an authorized reseller but don't have the required resources, you can hire someone else to do so. Authorized resellers usually get benefits like discounts on sales and access to special offers.

Distributor - Distributors are independent entities that buy licences and then resell them to third parties. However, distributors often retain some ownership rights to prevent unauthorized resale. Therefore, the two most common kinds of distribution models are licensed and white labeled.

Value Added Reseller - Value added reselling involves adding additional features to the original product. Examples of these features could be add-ons, customization options, training courses and so on. To make sure that you get paid properly, you'll need to sign a value added reseller agreement.

Authorized Reseller Agreement Template Free Download

If you want to start selling SaaS products, you first need to create a proper Authorised Reseller Agreement.

As we explained above, every company offering SaaS products comes with its own set of terms and conditions which governs the relationship between the vendor and the end user. Once you've signed one of those contracts, you can proceed further by signing up with multiple providers.

You can download the Authorized Reseller Agreement Template below to generate your own form. Just fill out the fields and save it as a PDF document. Next, print it off and give it to potential buyers. Alternatively, you can email the document directly to interested prospects.

This template contains a lot of information about the products, services offered, policies, terms and conditions. Be careful while filling it out as there are numerous mistakes that might cause confusion later. That said, we recommend that you read the entire agreement carefully once you receive it.

What is the difference between SaaS and license agreement?

One of the biggest differences between SaaS and regular software licensing is that the latter requires the customer to pay upfront whereas the former doesn't. As long as the customer uses the service, she pays nothing extra. The monthly fee covers everything needed to keep the application running smoothly.

On top of that, SaaS platforms typically come with a higher price tag than individual packages. Although the initial cost might seem high, it won't increase much after three years. After that period, you won't see much difference in prices unless you upgrade your plan.

Another major difference between SaaS and normal software licensing is that the former is web-based whereas the latter requires installation on computers. With SaaS, you never need to install anything yourself. All you need to do is log into your account and enjoy the full version.

What is a value added reseller agreement?

When you decide to sell SaaS products, you can either go alone or team up with somebody else. The latter option is called value added reselling. Basically, this means hiring someone else to sell the same products as you would.

However, if you partner with a professional reseller, you'll gain access to exclusive deals and valuable tools and techniques that will enable you to grow faster and reach new heights. By partnering with experienced professionals, you can cut down on the risk factor significantly.

Since such experts have worked with dozens of clients already, they know exactly where to focus your attention to maximize profits. Additionally, they don't mind spending some time educating you on the ins-and-outs of the industry.

Finally, working together will allow you to pool your resources to achieve greater success. And even though you share half the profit, you still earn enough to live comfortably.

What is the difference between a distributor and a reseller?

Although they sound similar, distributors and resellers differ greatly. Generally speaking, a distributor owns the stock of the products she distributes. On the other hand, a reseller buys the licenses from the manufacturer and rebrands them according to her requirements.

To summarize, a distributor acts as the middleman. She purchases the licenses from the manufacturers and then resells them to clients. On the other hand, a reseller works closely with the manufacturer and gets the licenses herself. Then, she markets and resells it to clients.

What is white label Licence?

Some businesses prefer to avoid getting branded products due to the lack of trust between brands. Instead, they opt for white label solutions which let them build custom products that mimic existing ones. Such products tend to be cheaper and easier to use.

However, despite being less costly, white labelling isn't always easy. Before creating your own solution, you need to find a suitable platform for designing and publishing it. Fortunately, you can turn to white label services.

For instance, Shopify lets you create beautiful websites that appear identical to Amazon and eBay. Similarly, Wix makes it simple to launch customizable eCommerce stores using templates designed specifically for entrepreneurs.

Lastly, you can find plenty of readymade solutions in Microsoft Azure Marketplace. Amongst other things, you can select the type of website you'd like to develop, pick a theme and personalize it accordingly.

Once you've found a good fit, you can contact the developer and ask him to integrate your chosen feature set. He'll handle the rest.

Which countries require a software reseller agreement?

Most jurisdictions around the globe require a software reseller agreement whether you're operating a physical store or reselling digital goods online. Here's a list of countries where you need to obtain authorization from the local authorities to operate legally:

Australia

Canada

India

Netherlands

Singapore

United Kingdom

United States

In order to protect intellectual property, some countries impose strict regulations on the importation of copyrighted materials. In particular, China prohibits the export of content produced outside of mainland territory.

Therefore, if you intend to run a profitable business in China or Hong Kong, you should acquire a relevant license beforehand.

Do I need to register my software reseller agreement?

Yes! Depending on the jurisdiction, you may need to submit a copy of your agreement to the appropriate authority. Otherwise, the deal might not hold water.

Moreover, some countries require that the agreement be filed electronically. Others call for submitting paper copies via registered mail or fax.

Generally, however, you shouldn't expect too much hassle here. Most governments welcome fair competition and will gladly grant you approval provided that you comply with all applicable laws.