MOU/Reseller Agreement - Software Start Up
Discussion
I am looking to help a young start up in the Financial Services compliance space (AML, on-boarding, KYC etc).
They have their first anchor client, now want to expand to Tier 1 Banks and Fintechs.
I have knowledge/contacts in this area that could materially support their growth.
They have sent an MOU with a 5% comission fee for all client revenue that comes via my referrals. The % I intend to negotiate.
I'm looking for guidance on how best to set this arrangement up with them legally? What is the appropriate structure to get something water tight in place...
Thanks in advice for practical tips/sharing your own experiences.
They have their first anchor client, now want to expand to Tier 1 Banks and Fintechs.
I have knowledge/contacts in this area that could materially support their growth.
They have sent an MOU with a 5% comission fee for all client revenue that comes via my referrals. The % I intend to negotiate.
I'm looking for guidance on how best to set this arrangement up with them legally? What is the appropriate structure to get something water tight in place...
Thanks in advice for practical tips/sharing your own experiences.
Cant help with the actual q but having just left a failing sme doing exactly what you describe, ill watch the thread with interest ! Good luck.
Ill just say that the hosting the cust data was the pita. Easier to use someone elses infra that client might already trust, but then the survival of yr business is dependant on the enthusiasm of a 3rd party...or do it yourself under an iso cert and jump through the cust dd hoops. Both have thier risks.
Ill just say that the hosting the cust data was the pita. Easier to use someone elses infra that client might already trust, but then the survival of yr business is dependant on the enthusiasm of a 3rd party...or do it yourself under an iso cert and jump through the cust dd hoops. Both have thier risks.
MOU does not equal contract.
I think the question is whether you are actually reselling or are introducing?
Broadly speaking who does the end client think they are contracting with - you or the underlying company? From your description I would guess the latter.
In which case you need a contract - not an MOU - that specifies what you get paid, when you get paid, if there is any clawback against you, whether payment is a one off or recurring, etc. There are other considerations too - will you be paid for any introduction, can the company compete with you, etc.
I would say that you need an introducer/referral contract.
I think the question is whether you are actually reselling or are introducing?
Broadly speaking who does the end client think they are contracting with - you or the underlying company? From your description I would guess the latter.
In which case you need a contract - not an MOU - that specifies what you get paid, when you get paid, if there is any clawback against you, whether payment is a one off or recurring, etc. There are other considerations too - will you be paid for any introduction, can the company compete with you, etc.
I would say that you need an introducer/referral contract.
OMITN said:
MOU does not equal contract.
I think the question is whether you are actually reselling or are introducing?
Broadly speaking who does the end client think they are contracting with - you or the underlying company? From your description I would guess the latter.
In which case you need a contract - not an MOU - that specifies what you get paid, when you get paid, if there is any clawback against you, whether payment is a one off or recurring, etc. There are other considerations too - will you be paid for any introduction, can the company compete with you, etc.
I would say that you need an introducer/referral contract.
I think the question is whether you are actually reselling or are introducing?
Broadly speaking who does the end client think they are contracting with - you or the underlying company? From your description I would guess the latter.
In which case you need a contract - not an MOU - that specifies what you get paid, when you get paid, if there is any clawback against you, whether payment is a one off or recurring, etc. There are other considerations too - will you be paid for any introduction, can the company compete with you, etc.
I would say that you need an introducer/referral contract.
Exactly the MOU they have sent is more a statement of intent,since our first meeting. We will now execute a contract if it makes sense for me to be involved. Thanks for taking the time to share, super useful!
Chimune said:
Cant help with the actual q but having just left a failing sme doing exactly what you describe, ill watch the thread with interest ! Good luck.
Ill just say that the hosting the cust data was the pita. Easier to use someone elses infra that client might already trust, but then the survival of yr business is dependant on the enthusiasm of a 3rd party...or do it yourself under an iso cert and jump through the cust dd hoops. Both have thier risks.
Interesting, would you be open for a brief chat? Sounds like you have some valuable experience in this area. Ill just say that the hosting the cust data was the pita. Easier to use someone elses infra that client might already trust, but then the survival of yr business is dependant on the enthusiasm of a 3rd party...or do it yourself under an iso cert and jump through the cust dd hoops. Both have thier risks.
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