> For the complete documentation index, see [llms.txt](https://help.security.gallagher.com/knowledge-hub/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.security.gallagher.com/knowledge-hub/deployment-resources/security-and-compliance/gallagher-policies-library/non-authorized-resellers-policy.md).

# Non-authorized resellers policy

Understand reseller authorization requirements and discount penalties for policy breaches.

## Certified Choice

Part of the value proposition to end users of Gallagher systems is the choice of Certified Channel Partners.

The benefit to end users of contracting with Certified Gallagher Channel Partners is that only channel partners with signed partner agreements have a direct line into Gallagher. Certified Channel Partners commit to ensuring they employ certified technicians and engineers who in turn have direct access to services and resources from Gallagher, including Gallagher Technical Support Services. By working in partnership with Gallagher, we can deliver much better outcomes for end users. This message has been positively received by many end users and consultants that Gallagher comes into contact with during the demand generation phase.

## Non-Authorized Resellers

Through signing a partner agreement, Gallagher Certified Channel Partners are appointed for the sale, installation and/or maintenance of systems installed on end user sites. A few Channel Partners have engaged in the practice of re-selling systems to non-authorized companies which do not have an agreement with Gallagher or its appointed Regional Distributor. Initially the practice happened within the small-medium enterprise market however, over time, as the market has matured and the demand for Gallagher systems increased, this practice is causing increasing issues in the market, not least of which is a potential de-valuation of what it means to be a Gallagher Certified Channel Partner.

The impact has been felt by end users, many of our dedicated Channel Partners, Regional Distributors and Gallagher. Unsatisfactory outcomes can include, for example:

* Poor quality installations which reflect not just on the system and Gallagher, but all Channel Partners who are accredited and certified
* Non-authorized resellers leveraging their technical certification to pass themselves off as a Gallagher Certified Channel Partner
* Ongoing channel conflict requiring the intervention of Gallagher or its Regional Distributor – which in turn impacts the time available to dedicate to proactive demand generation for the betterment of all Certified Channel Partners
* Inaccurate information in the Gallagher licensing database regarding who is servicing the end user
* Channel Partners who breach their partner agreement by selling outside their assigned territory

## Measures

Where the end user’s relationship is with a non-authorized reseller, it also reduces the longer-term potential to market CarePlan and new features and benefits which could be of significant value to the end user.

These issues have been increasing which has the ultimate impact of increasing cost on the Regional Distributor and/or Gallagher and reducing business opportunity for Certified Channel Partners. In response, Gallagher is introducing the following measures with effect from 1 July 2010:

* Channel Partners may not sell to a company which has the intention of resale unless:
  * the company is also a Certified Channel Partner for the same system
  * Channel Partner has gained prior consent of their Regional Distributor or Gallagher
* When it comes to our attention that a Channel Partner has breached this policy, and this information has been validated, the offending Channel Partner’s discount will be immediately reduced for the following rolling 12-month period as detailed below in ‘Discount Penalties’
* In addition, when it comes to our attention that a Channel Partner has resold product outside their territory without first seeking approval from:
  * the Regional Distributor if within the Regional Distributor’s defined region or
  * the General Manager Security if outside of the region and this information has been validated, the offending Channel Partner’s discount will be immediately reduced for the following rolling 12-month period as detailed below in ‘Discount Penalties’

## Discount Penalties

Breaches of this policy may result in the following discount penalty being applied:

* Where the Channel Partner’s discount is greater than 5% e.g. 5.25%, their discount will be reduced by 5 whole percentage points, e.g. 5.25% - 5% = 0.25% = new partner discount
* In all other cases their discount will be set to nil

The reduced discount will continue for a period of 12 months. At the end of the 12-month period the Annual Partner Performance Discount that would have applied from the last 1 July will apply until the next 30 June.

Channel Partners who persist in these behaviours risk terminating their partner status. To conclude, if there is a need to appoint additional Channel Partners in the market or to change the mix of Channel Partners to meet end user demand, then this is the role of Gallagher or its Regional Distributor.


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