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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Customer Centricity

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Event Tracking

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Database Management

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A/B Testing

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Win/Loss Analysis

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Email Personalization

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Outbound Leads

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Sales Operations Key Performance Indicators

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AI Data Enrichment

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Marketing Qualified Opportunity

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Functional Testing

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Predictive Analytics

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Sales Calls

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Solution Selling

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Qualified Lead

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Feature Flags

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Drupal

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CCPA Compliance

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Hybrid Sales Model

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SDK

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GTM

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Cost Per Impression

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D2C

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Marketing Intelligence

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Website Visitor Tracking

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Total Audience Measurement

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Persona Map

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Programmatic Advertising

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Sales Presentation

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Average Revenue per Account

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Scalability

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Sales Pitch

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Sales Pitch

Price Optimization

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Price Optimization

Revenue Operations (RevOps)

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Revenue Operations (RevOps)

Marketo

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Marketing Metrics

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Batch Processing

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Unique Selling Point

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Unique Selling Point

Content Syndication

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Content Syndication

Load Balancing

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Nurture

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Simple Object Access Protocol Application Programming Interface

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Simple Object Access Protocol Application Programming Interface

Stakeholder

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Churn

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Compounded Annual Growth Rate

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Target Account Selling

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Weighted Sales Pipeline

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Weighted Sales Pipeline

Buying Criteria

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Average Order Value

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Average Selling Price

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Quarterly Business Review

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Quarterly Business Review

Hard Sell

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Edge Locations

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Real-time Data Processing

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Ransomware

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Ransomware

Virtual Selling

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Precision Targeting

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Precision Targeting

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Economic Order Quantity

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Economic Order Quantity

Content Delivery Network

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Content Delivery Network

Kanban

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Ideal Customer Profile

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Ballpark

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Personalization

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Data Encryption

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Data Encryption

Sales Performance Metrics

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Sales Performance Metrics

Dark Social

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Dark Social

User-generated Content

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User-generated Content

Decision Buying Stage

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Decision Buying Stage

Analytics Platforms

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Analytics Platforms

Field Sales Rep

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Field Sales Rep

InMail Messages

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Sales Conversion Rate

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Sales Conversion Rate

Overcoming Objections

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Overcoming Objections

Request for Information

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Request for Information

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LinkedIn Sales Navigator

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B2B Data

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B2B Data

Cross-Selling

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Cross-Selling

Incident Response

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Incident Response

Customer Data Platform (CDP)

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Customer Data Platform (CDP)

Lead Generation Software

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Lead Generation Software

Generic Keywords

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B2B Intent Data Providers

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Cybersecurity

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Cybersecurity

Triggers

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Marketing Analytics

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Marketing Analytics

Demand Forecasting

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Demand Forecasting

Personalization in Sales

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Personalization in Sales

Smile and Dial

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Smile and Dial

Escalations

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Escalations