Which Type of Software Distribution Agreement Do I Need?

Any company seeking a venture capital investment will benefit from reading this post. I am often asked which type of software distribution agreement is needed. Though they may differ in structure, here are some good general rules (i.e. 80% true) to help you determine which agreement you will need. Note: this is also assuming the software is distributed electronically, and not in a box/package. 

Q) Who is Paying the Software Vendor? 
A1) End User – Yes for Referral Agreement

A2) Partner – Yes for OEM, Distribution and Reseller Agreements

Q) Who is Entering into the License Agreement with the End User?
A1) Software Vendor – Yes for Distribution, Reseller and Referral Agreements (i.e. license resale)

A2) Partner – Yes for OEM Agreement (i.e. sublicensing the software)
Q) Who is Distributing the Software to the End User?
A1) Software Vendor – Yes for Distributor, Reseller and Referral Agreements

A2) Partner – Yes for OEM Agreement (some Distributors do this)

Q) Who is Providing the License Keys to the End User?
A1) Software Vendor – Yes for Distributor, Reseller and Referral Agreements

A2) Partner – Yes for OEM Agreement (some Distributors do this)

This is just a simple quick checklist you can utilize to help you decide which agreement to use. I often discuss issues similar to these with the OpenView portfolio of expansion stage companies or with other companies looking for growth venture capital.