[GTM glossary](/glossary.md) Value-added reseller (VAR)

GTM Strategy & SaaS Metrics

# 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.

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## 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.

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## 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.

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## 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.

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## 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.

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## More related phrases

* [Markup](/glossary/markup.md)
* [White label](/glossary/white-label.md)
* [Partner program](/glossary/partner-program.md)

## Similar phrases

* [Reseller](/glossary/reseller.md)  
A reseller is a company or person that buys products or services from a vendor and sells them to end customers, usually keeping a margin on each sale.
* [Partner-led growth](/glossary/partner-led-growth.md)  
Partner-led growth is a go-to-market strategy where partners such as resellers, agencies, and tech vendors drive much of acquisition and expansion.
* [Channel partner](/glossary/channel-partner.md)  
A channel partner is an outside company that sells, resells, or refers your product to its own customers in return for a commission, margin, or other incentive.
* [Channel partners](/glossary/channel-partners.md)  
Channel partners are the network of resellers, referral partners, agencies, and integrators a company manages as a program to extend its sales reach.
* [Channel sales](/glossary/channel-sales.md)  
Channel sales is a model where a company sells through third parties such as resellers and agencies instead of, or alongside, its own direct sales team.