Value-added reseller (VAR)
Also known as: VAR, value added reseller
In short
A value-added reseller (VAR) is a company that resells another vendor’s product after adding its own value, such as implementation, integration, customization, training, or ongoing support. The customer buys a complete solution, not just the base product.
VARs are a channel partner type. They give a vendor reach into customers it cannot serve directly, especially where local presence or specialist expertise matters.
How a VAR differs from other resellers
- Reseller: Sells the product, often with little added. Margin comes mostly from the price spread.
- Value-added reseller: Sells the product plus its own services or add-ons, and earns from both.
- Referral partner: Introduces leads and is paid a fee, but does not handle the sale or delivery.
What VARs add
- Implementation: Setup, configuration, and data migration.
- Integration: Connecting the product to the customer’s existing systems.
- Industry expertise: Tailoring the solution to a vertical or regulation.
- Support and training: First-line help and user enablement after purchase.
Working with VARs as a vendor
Recruit for fit
Pick VARs that already serve your ICP and have the skills your product needs. Ask for customer references, not just a list of brands they carry.
Equip them
Provide training, certification, demo environments, and sales materials. A VAR that cannot demo confidently will not sell.
Set clear economics and rules
Define margin or discount, deal registration, and how conflicts with your direct sales team are handled. Say a VAR registers an account first: the rules should state who owns it.
Common mistakes
- Recruiting too many: A handful of active VARs beats dozens of dormant ones.
- Channel conflict: Reps undercutting VARs destroys trust fast.
- No visibility: If you lose sight of end customers, you lose data on usage and renewals.
Value-added reseller (VAR) FAQs
What is a value-added reseller (VAR)?
A value-added reseller is a company that buys a vendor’s product and resells it together with its own additional services or features, such as implementation, integration, customization, training, or support, delivering a complete solution to the end customer.
How is a VAR different from a standard software reseller?
A plain reseller mainly resells the product, often with little change. A value-added reseller adds its own services or enhancements and typically earns revenue from both the product margin and those services, which makes it more involved with the customer.
How do VARs make money?
VARs earn from the margin or discount on the vendor product they resell, plus fees for their own services such as implementation, integration, training, and ongoing support or managed services.
Why would a software vendor work with value-added resellers?
VARs extend a vendor’s reach into regions or industries it cannot cover directly, add local expertise, and handle implementation and support. This lets the vendor scale sales without hiring a large direct team in every market.
