Guam Value Added Reseller Distribution Agreement
Description
How to fill out Value Added Reseller Distribution Agreement?
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FAQ
A software reseller is a company that purchases software from a software developer or publisher and resells it to other businesses.
A SaaS Reseller is a company or individual who resells software as a service (SaaS) products to end-users.
A VAR agreement is a governing law that increases the value of a product and enhances the customer experience by maximizing complementary aspects of both companies. A value-added reseller agreement delineates reseller rights and specifies the conditions required for performing (for either party).
Unlike distributors, resellers don't purchase and store your product, ready to sell. Instead, they act as a middleman, taking a commission when they sell your product to a customer. You must often ship the product to the customer directly after receiving the reseller's purchase information and fee.
What Are Resellers or Distributors? In theory, a distributor is the same as a reseller. The reseller or distributor will purchase SaaS software and services from the supplier under the terms set forth in a reseller or distribution agreement.
Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.
Distributors consist of order takers, and generally lack real product knowledge. On the other hand, there are VADs, which provide a broad range of products, stock inventory, operate their own warehouse(s), supply credit to re-sellers, and have dedicated sales teams trained in understanding your products.
A reseller agreement typically refers to an arrangement between someone supplying goods (often known as the wholesaler) and another party selling the goods to a third party or the general public (the reseller). Under a reseller agreement, the reseller agrees to sell the products on behalf of the wholesaler.
