PRM GLOSSARY → PARTNER TYPES & ROLES

What is Value-Added Reseller (VAR)?

A Value-Added Reseller (VAR) is a channel partner that purchases a vendor’s product and resells it to end customers after adding value through services, customization, integration, or bundling with complementary solutions. Unlike simple resellers who…

Value-Added Reseller (VAR) Definition

A Value-Added Reseller (VAR) is a channel partner that purchases a vendor’s product and resells it to end customers after adding value through services, customization, integration, or bundling with complementary solutions. Unlike simple resellers who resell products as-is, VARs differentiate themselves by adding expertise and services that make the product more valuable to specific industries or use cases.

Why Value-Added Reseller Matters

VARs are often the backbone of technology channel programs because they combine sales reach with implementation expertise. For vendors, VARs extend market coverage into specialized verticals and geographies. For customers, VARs provide a trusted local partner who understands their industry-specific needs and can deliver a complete solution.

Key Components of Value-Added Reseller (VAR)

Product Resale

Purchasing vendor products at a discount and reselling them to end customers at a margin.

Professional Services

Implementation, configuration, customization, and integration services added on top of the core product.

Industry Specialization

Deep expertise in specific verticals that enables tailored solutions.

Ongoing Support

First-line technical support and maintenance services provided to the end customer.

Solution Bundling

Combining the vendor’s product with complementary hardware, software, or services.

Value-Added Reseller (VAR) Best Practices

1

Select VARs based on vertical expertise and customer base alignment.

2

Provide VARs with technical training and certification programs.

3

Offer VARs sufficient margin (25-40%) to build a profitable services business.

4

Support VARs with co-selling resources for larger opportunities.

5

Track VAR performance on customer satisfaction, not just revenue.

How xAmplify Helps with Value-Added Reseller

xAmplify provides everything you need for value-added reseller — from automated workflows and a white-label partner portal to Oliver AI partner intelligence. Free for up to 10 partners.

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Frequently Asked Questions

What is the difference between a VAR and a reseller?

A reseller simply resells a product without modification. A VAR adds value through implementation, customization, integration, and ongoing support.

How do VARs make money?

VARs earn from two sources: margin on product resale (25-40%) and professional services fees for implementation, customization, and ongoing support.

How do you recruit VARs?

Identify companies already serving your target market with complementary products. Approach them with a clear value proposition and enablement support.

Related Glossary Terms

Channel Partner Reseller System Integrator Partner Tiers Partner Program Indirect Sales Channel Management