For local resellers, they might order direct through the distributor catalogs paper or online. Some buyers will commit to volume and then you use that to sign up a distributor. Others will require a distributor first they carry too many SKUs to order direct and prefer a wholesale distributor for financing terms, savings for shipping, returns, etc.
They charge a margin but often require a co-op percentage of sales that could later be applied toward distributor promotions different ways to get more margin. You would still have similar overall margins regardless of the channel. If the national chains get more margin because of their volumes, then many retailers will order through an aggregator like the Ascii Group. They will order in mass to get you better discounts and then have a smaller margin and parse it out to their members smaller retailers.
Many of your competitors will have their affiliate margins on their websites. You can also find out what the going affiliate margin in and the terms first year, perpetual, etc. You have had to pay accordingly the going rate. Sometimes when setting up a program you are tempted desperate to create one-off agreements. However, it becomes messy when you start growing—especially if your deals did not include a performance clause must sell a select volume within a select time frame to retain exclusive advantages.
It helps to see a model of all types of partner types so you can map what the partner does and their respective value to the typical margins. I had one vendor out of Australia that created an exclusive deal with a single reseller in California that got California, Nevada, and Oregon as an exclusive territory. There was a 3-year time limit but no performance clause.
California is the 17th largest economy in the world—bigger than entire countries and this reseller only sold regionally.
We were able to unwind it—but what a mess! Distribution Models Excel is a spreadsheet that shows many of these models with typical responsibilities and margins. It is not fully explanatory—but I use it to explain the options when dealing with one-off offers to different partner types. The problem comes from the difference between markup and margin also called gross profit. Mark-up is the percentage of the amount you earn on the cost of an item you sell.
Gross profit or margin is the percentage of the amount you earn on the selling price of the item. Here is how to compute it:. Put another way, the gross profit margin is figured on the sales price of an item, and the markup is based on cost. Software resellers, much like sales representatives, are independent of the employer. They enter an agreement with the original software developer, which allows them to resell their products to customers under their own brand.
This is crucial—the end-users are typically unaware of the connection between the reseller and the white label software manufacturer. Another key distinction is that the reseller technically buys the product from the developer.
At that point, they are pretty much free to do with it as they please. This means that, as a reseller, you can rebrand the software with your name and logo and resell it as your own.
It also means that the developer is in no way responsible for your success. Resellers also typically choose their own margins. The whole idea behind reselling a white label product is that you get to decide the price point.
This gives resellers an opportunity to generate substantial revenue since the difference between the buying and selling price can be substantial. Although some resellers work on commissions, where the software developer enters the agreement with the end-user and provides compensation to the reseller, the key difference is that resellers are completely separate from the developers.
This means they have to use the title of an independent reseller, rather than presenting themselves as an entity tied to the original developer. The essentials every software reseller agreement should cover include:. These are the bare bones of the agreement that you should thoroughly go over before agreeing to become a white label software reseller. You should, of course, take your time to go over the entire document at least a few times to avoid any potential unpleasant situations.
Some countries may have different laws regarding the selling of online products and services, as well as special restrictions you should be aware of. One thing to note here is that, regardless of their geographic position, the agreement should be in English.
In some cases, the agreement may be translated into other languages, but note that the English version will always have precedence over all other versions. Software reseller agreements can be either exclusive or non-exclusive. The software provider has the full right to choose which type of agreement they will offer to each individual reseller. Exclusive agreements, however, do not imply that you are the only one allowed to sell the software.
In most cases, they are geographically defined, meaning an individual reseller obtains the right to resell to a specific market, say the United States. In that case, other resellers are free to promote the same product to the end-users in Europe. Non-exclusive agreements are, therefore, much more common. The exclusive right to resell the software and services in a specified geographic area. With white label solutions, a reseller agreement should give the reseller full right to claim the products and services as their own and market them under their own brand.
Otherwise, the software developer must define whether the reseller can register domain names, company names, and trademarks on behalf of the supplier. Should they grant the reseller such rights, the agreement must also clearly define what happens with the intellectual property after the agreement expires or is terminated by either side. The safer, and frankly, the better option for the reseller is the ability to sell the products as their own intellectual property.
White label solutions do not require you to credit the original software developer in any way. Instead, you can customize the product as much as you want, resell it as your own, and build your brand while generating revenue. This is a win-win situation. This is called a margin. In some cases, especially with software as a service SaaS , resellers will be compensated through commissions. The agreement should clearly define the commissions for every service, as well as state whether the resellers will receive these commissions as a one-time compensation or monthly, whenever the end-user renews their license.
You should also check to see if you will be compensated for any future purchase made by the client you secured for the company, and whether you can upsell them on additional products and services from other companies. That said, you should also keep an eye on the available payment methods.
There is no worse feeling than letting a sale slip through your fingers because a client is unable to make a payment using their preferred method. The supplier should be ready and willing to step in when the end-user encounters a problem with their software or service. They should also be responsible for maintaining and updating the software.
Your job, as a reseller, should only be to resell the products and services. Although it sounds like common sense, there are suppliers who fail to identify this in the reseller software agreements, leaving the resellers to deal with unsatisfied customers and try to resolve the software issues on their own. The more you get out of the reseller software agreement, the better.
This is a crucial thing to mention to the customers as well. The key takeaway from this article is that a software reseller agreement is a legally binding document and that you should take your time to go through every single line in the document before you agree to start reselling. OSit was founded in as part of Alrubaishi Group.
Qast Singapore is the leading software distributor in Singapore. The company is specialized in software sales, technical support and related services. Please contact the sales office for inquiries. AccessSoft Inc. Please contact Rachel Wu. I-Planet International is a professional software retailer and distributor cooperating with Microsoft, Adobe and other companies in Taiwan.
I-Planet mainly does business in the education sector. Linksoft Inc. NFI is a professional management and software company in Taiwan. Their main business is the sale of professional software and hardware products. Kevin Hu. Besides, the company provides consulting and IT services to customers across Asia. Specializing in barcodes and POS solutions, the company offers high-quality barcode printers, barcode scanners and POS software. Chanchai Nitikitpaiboon.
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The company offer labels, printers, scanners, verifiers, as well as custom software and web solutions. With decades of experience, the company uses only the best equipment and software, including barcode software from TEC-IT, the combination of which with REA barcode equipment creates an optimal solution. Comsoft-SOS Developers is a big french software reseller which offers a broad range of software products and customized business solutions for small and medium-sized companies.
Our company is specialized in outsourcing, development, consulting and training and is one of the leading IT service companies in the world of Apple technologies. Since , iNet System has been cooperating with enterprises, administrative institutions and small businesses. For inquiries, please contact us. It is a recognized, efficient and sustainable company that guarantees reliability and stability for IT purchases.
Romain Dordet. The company acts successfully in the area of information logistics. Beside industry-specific products, Comline offers services for design and implementation of software solutions. Please find your personal contact partner here. Config GmbH stands for innovative information technology and offers customized IT solutions, as well as individual consulting services to small- and medium-sized enterprises.
Your contact person is Hr. ConnectData works in the field of logistics, mainly cooperating with medium-sized manufacturing companies. The company offers appropriate solutions for identification and tracking across the entire flow of goods, carried out with barcode labels or RFID technology. For further questions, please contact the sales team.
Their competence has an emphasis on consulting and further development and customization of standardized software. KG supplies its services throughout Europe. German medium-sized companies as well as international corporations belong to its customers.
For over 35 years, this company has been a qualified partner for industrial and commercial companies. It specializes in implementation, modification, development and support of standard business software.
Please contact the sales office using the GCI contact form. In case of questions please contact us. HMC Hamburg Mobile Computing is a technical system house specialized in labeling systems and mobile data acquisition. Among its services is supplying complete applications of any size as standard software or a customized solution.
Contact: info hamburg-mobile. Hexacom is a wholesaler of software, licenses and enterprise solutions with more than 20 years of experience. For inquiries, please contact sales hexacom. International Software Partners GmbH is one of the leading European specialists for software distribution and service.
Please contact Christian Laube. IPEA offers individual solutions and consulting on data protection in the IT field and is focused on the pharmacies area. JessenLenz is known as IT software provider since The services range from process and IT consulting over sales and service to the development and implementation of innovative IT solutions for complete business processes or for the whole IT infrastructure.
As a provider of services and products for automatic identification and data acquisition solutions, LOGGATE is a contact for IT projects in transport, logistics, industry, trade and commerce. The portfolio includes simple barcode readers, label printers, mobile data acquisition devices, LAN and WLAN networks, monitoring and server systems.
The company has more than 15 years of experience in the implementation of IT projects of various sizes and sees itself as a "Full service provider". Focus of Norlan GmbH is system integration of Auto-ID products, such as handheld devices and forklift terminals in the warehouse and transport logistics. For more information please contact Mr. Frank Verhufen. The service portfolio includes procurement and distribution of PCs, servers and IT-specific products. Paradies Informationstechnik GmbH develops software solutions for various industries and requirements, e.
For inquiries, please contact Mr. Since , the company has mainly been supplying public clients, industrial and medium-sized companies with customized IT solutions. For years, our regular customers have also included doctors' surgeries and hospitals. Quentia offers reliable IT services to businesses of all sizes. The service spectrum includes flexible cloud solutions, digital process optimization and user-oriented IT infrastructure. For more information, please contact the sales team.
SienerSoft has been distributing software since Our reseller Softwarebox GmbH has been specializing in software distribution since The company supplies its services to end customers and IT-specialized dealers in Germany and Europe. Since , the IT experts have been developing, implementing and realising innovative IT solutions and offering individual service concepts.
TSO-DATA relies on modern and future-oriented technologies that can be specially adapted to the needs of medium-sized companies. Please contact us for inquiries. For over 40 years, W.
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