Chapter 14. Commercial Distribution—Part I

General Principles, Deal Types, Reseller Deals, and Legal Rules


The most important single central fact about a free market is that no exchange takes place unless both parties benefit.

 --Milton Friedman, Economist

Software vendors want to reach the maximum number of customers and increase sales of each new product offering. Most software vendors leverage their sales by means of “partnering” or “channel partners”—to benefit from the sales and distribution networks of their “partners.” The partners benefit as well by carrying and profiting from the products.

Most distribution relationships are based on a written distribution agreement. Some distribution deals are customized and highly negotiated. Others are ...

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