Software Resellers Continued - Not Just Percentages Anymore

[paulzazzarino]

I thought the previous post on fee increases was interesting but left out some of the more important issues. But first look at what is somewhat standard. If you are a hardware/software vendor you typically give resellers a 20 to 25% discount on goods they purchase from you to resell so the 30% quoted here is not too far off base.

What I found so objectionable were some of the following demands put forth in their legal "reseller agreements", and Handango was the most abusive in my opinion. [The following are paraphased line items which are close to some of the standard reseller agreements]

1) A 100K pay cap. If your app made more than 100K in sales all future proceeds went to the reseller.
2) Reseller has Direct control of product pricing
3) Reseller has Direct control of defect tracking, if they viewed an issue as a bug you had two weeks to correct the issue and supply them with a patch.
4) You or your company are directly liable for any damage or legal issue which might arise out of the software.
5) Court costs, if engaged in legal battles you pay them.
6) The highlight was after going thur Handango Legal agreement via the Web interface only the "accept" button worked. The "decline" button did
not.

Granted selling software is a business and many of the guidelines established are there to protect the consumer, BUT with issues like the above Paypal & Merchant Tools look like heaven!

[paulzazzarino]

I thought the previous post on fee increases was interesting but left out some of the more important issues. But first look at what is somewhat standard. If you are a hardware/software vendor you typically give resellers a 20 to 25% discount on goods they purchase from you to resell so the 30% quoted here is not too far off base.

What I found so objectionable were some of the following demands put forth in their legal "reseller agreements", and Handango was the most abusive in my opinion. [The following are paraphased line items which are close to some of the standard reseller agreements]

1) A 100K pay cap. If your app made more than 100K in sales all future proceeds went to the reseller.
2) Reseller has Direct control of product pricing
3) Reseller has Direct control of defect tracking, if they viewed an issue as a bug you had two weeks to correct the issue and supply them with a patch.
4) You or your company are directly liable for any damage or legal issue which might arise out of the software.
5) Court costs, if engaged in legal battles you pay them.
6) The highlight was after going thur Handango Legal agreement via the Web interface only the "accept" button worked. The "decline" button did
not.

Granted selling software is a business and many of the guidelines established are there to protect the consumer, BUT with issues like the above Paypal & Merchant Tools look like heaven!