Terms

Value-Added Reseller

A value-added reseller (VAR) is a company that enhances third-party products by bundling them with additional services or features before reselling them to end-users. This added value often includes services like installation, consulting, customization, and technical support, transforming a standard product into a tailored solution. By doing so, VARs act as a critical distribution channel for manufacturers, particularly within the information technology industry.

Benefits of Partnering with a Value-Added Reseller

Partnering with a VAR offers businesses a strategic advantage beyond simple product acquisition. They act as a bridge between manufacturers and end-users, providing tailored solutions that address specific challenges. This collaboration can lead to enhanced efficiency, specialized support, and streamlined operations for your organization.

  • Expertise: Access specialized knowledge and industry-specific insights that in-house teams may lack.
  • Simplicity: Enjoy a single point of contact for managing multiple vendors and complex IT projects.
  • Solutions: Receive a complete, customized solution with services like installation, consulting, and ongoing support.
  • Efficiency: Offload demanding or time-consuming projects, freeing up your internal resources for core business functions.

Key Industries Utilizing Value-Added Resellers

The information technology sector is the most prominent area where VARs operate. They provide comprehensive IT solutions by bundling hardware, software, and networking components. These resellers add services like installation and consulting to create turnkey systems for businesses.

Beyond IT, the VAR model is also found in other sectors. Auto dealerships act as VARs by offering extended warranties, while furniture companies may provide design services. Specialized VARs also cater to the unique needs of industries like healthcare and finance.

Value-Added Reseller vs. Managed Service Provider

While both help companies with technology, value-added resellers and managed service providers operate on fundamentally different business models.

  • VAR: A value-added reseller focuses on project-based sales, bundling third-party products with services like installation and customization. They are ideal for complex, one-time projects where enterprises or mid-market companies need a single point of contact. However, customers have less control over the original product's quality and cost.
  • MSP: A managed service provider offers ongoing, remote management of a company's IT infrastructure under a long-term contract. This model provides recurring services like technical support and cybersecurity, making it suitable for businesses seeking to offload day-to-day IT operations and ensure consistent system management.

How to Choose the Right Value-Added Reseller

This is how you can select the right value-added reseller for your business.

  1. Evaluate their industry expertise and technical skills to ensure they understand your specific needs.
  2. Review their portfolio of products and services to confirm they offer the solutions you require.
  3. Verify their vendor authorizations and certifications to gauge their qualifications and partnerships.
  4. Investigate their reputation and track record for building long-term, trusted client relationships.

Trends in the Value-Added Reseller Market

The value-added reseller market is undergoing a significant transformation, driven by evolving technologies and shifting customer demands. To remain competitive, VARs are adapting their business models away from traditional one-time sales. This evolution is marked by a strategic pivot towards service-oriented, recurring revenue streams.

  • Hybridization: Blending traditional reselling with managed services to create recurring revenue.
  • Specialization: Focusing on high-demand niches like cybersecurity, cloud, and the Internet of Things (IoT).
  • Cloud-centric: Transitioning into roles as cloud resellers and consultants to meet modern IT needs.
  • Services: Shifting from product-centric sales to offering more consulting and professional services.
  • Partnerships: Deepening relationships with vendors to gain certifications and access to advanced technologies.

Frequently Asked Questions about Value-Added Reseller

How do VARs make money?

VARs buy products at a discount and resell them at a markup. Their profit comes from this margin plus fees for bundled services like customization, installation, and ongoing support, which create a comprehensive solution for the customer.

Is a VAR the same as a distributor?

No. Distributors focus on logistics and high-volume sales. VARs enhance products with services like consulting and support to create tailored solutions, adding a layer of expertise that distributors typically do not provide.

Why not buy directly from the manufacturer?

Buying direct gets you the product, but a VAR provides a complete solution. They offer specialized expertise, integration, and a single point of contact for support, saving you the complexity of managing it all yourself.

Other terms

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Sales Prospecting

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Closed Opportunities

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Competitive Analysis

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Data Privacy

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Cohort Analysis

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Database Management

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Buying Signal

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Sales Bundle

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Channel Sales

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FAB Technique

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Bad Leads

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Product-Led Growth

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Real-time Data Processing

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Digital Sales Room

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Data Management Platform

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Serviceable Obtainable Market

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Inside Sales Rep

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Virtual Selling

Virtual selling is the process of selling to customers remotely using technology like video calls, rather than meeting them in person.

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Buying Criteria

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Business Process Management

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Discount Strategies

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Shipping Solutions

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Contact Discovery

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Accounts Payable

Knowledge Base

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Cold Call

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Cloud-based CRM

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Sales Enablement Platform

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Sales Enablement

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AppExchange

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Territory Management

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Sales Rep Training

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Sales Rep Training

Signaling

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Signaling

Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

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Overcoming Objections

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Generic Keywords

Generic keywords are broad search terms that lack specific details like brand or location. They attract a wide audience with less specific intent.

Generic Keywords

Sales Pipeline Velocity Formula

The sales pipeline velocity formula is a key metric that measures how quickly deals move through your pipeline and turn into revenue.

Sales Pipeline Velocity Formula

Direct Mail

Direct mail is a marketing method where businesses send physical promotional materials directly to potential customers' mailboxes.

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Gated Content

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Gated Content

Kanban

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Kanban

Stakeholder

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Psychographics

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Sales Strategy

A sales strategy is a comprehensive plan that outlines how a business will sell its products or services to achieve its revenue goals.

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Drupal

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API

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Letter of Intent

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CSS

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Master Service Agreement

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Deal-Flow

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Private Labeling

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80/20 Rule

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B2B Sales Channels

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Customer Lifecycle

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Digital Rights Management

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Sales Workflows

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Predictive Lead Scoring

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Subject Matter Expert

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Decision Maker

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Target Buying Stage

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PPC

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No Forms

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Feature Flags

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Account-Based Advertising

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Customer Acquisition Cost

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Lookalike Audiences

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Page Views

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Product Recommendations

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Progressive Web Apps

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Sales Plan Template

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Consumer Buying Behavior

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Consumer Buying Behavior

Gamification

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Consideration Buying Stage

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No Cold Calls

No Cold Calls is a sales strategy that replaces unsolicited calls with warm outreach to prospects who have already demonstrated interest.

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Drip Campaign

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Drip Campaign

Sales Productivity

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Cloud Storage

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Unit Economics

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Field Sales Rep

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Geo-Fencing

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Geo-Fencing

Email Verification

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Customer Data Platform (CDP)

A Customer Data Platform (CDP) centralizes customer data from all sources to create a complete, unified profile for each individual customer.

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Loyalty Programs

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Load Balancing

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Deal Closing

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Data Mining

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Warm Email

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Clustering

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Firewall

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Email Cadence

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Lead Enrichment

Lead enrichment adds third-party data to your raw lead lists, creating fuller prospect profiles for more effective and personalized outreach.

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Account-Based Everything

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MEDDICC

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MEDDICC

Monthly Recurring Revenue (MRR)

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Monthly Recurring Revenue (MRR)

Warm Outreach

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Warm Outreach