Establishing Partnerships and Agreements in Partner Ecosystem Management
Before a Merchant and Reseller (Service Provider) can do business together in the user interface, they must first enter a partnership. To enter a partnership, the Reseller must request a partnership with the Merchant. The Merchant can create their product(s) and product group(s) before or after this step. Next, the Reseller can create an agreement for one of the Merchant’s products. The Reseller and Merchant can enable a settlement model within the agreement to pay the Merchant. The settlement type can be revenue share or fixed amount. The Merchant will be paid either for every active subscription or for every subscription transaction, depending on the agreement.Use Case Example: Reseller (Service Provider) Reselling Merchant Products
A Merchant wants to offer two products, a basic product and a premium product. In the user interface, the Merchant creates two separate products and puts them together in a product group. Product groups let you arrange related products together under a label. Having more than one product in a group gives the customer the ability to switch between products, which includes downgrading and upgrading. The Merchant publishes the product group, allowing one or more Resellers (Service Providers) to discover the group and its products. A Reseller decides they want to create an agreement to resell one of the Merchant’s products in the group. A settlement model is chosen for the agreement - revenue share. The Reseller sends the agreement to the Merchant and the Merchant approves. From there, the Reseller uses the Merchant’s product in a billing plan offering in their subscription management tool on their digital store. When a transaction comes in, Partner Ecosystem Management matches the transaction details with the Merchant’s product code to look for enabled settlement terms in the agreement. When settlement terms are present, Partner Ecosystem Management calculates the amount going to the Merchant. In this case, since the settlement is set up as revenue share, the Merchant gets paid a specified percentage for every active subscription.