Distribution, Reseller or Referral Agreement? Choosing the Right Channel Model for Growth

Two business colleagues shake hands during a meeting while a woman reviews documents beside them.

The label on the agreement matters less than who contracts with the customer, who carries the revenue risk and who controls the customer relationship. Businesses often begin a channel negotiation by asking for a “standard reseller agreement” or “distribution agreement”. That is understandable, but it starts in the wrong place. Channel models overlap, market terminology is inconsistent and a document can be called a reseller agreement while operating commercially like an agency or referral arrangement. The better starting point is the operating model. Who invoices the customer? Who sets the […]