If you sell software, hardware, or IT solutions and want to grow without building out a massive direct sales team, value added resellers are worth understanding. They sit at the center of how most IT products actually reach customers — and knowing how they work will help you build a smarter channel strategy.
This guide covers what a VAR is, how it differs from other partner types, and what IT vendors should think about when recruiting and working with them.
What Is a Value-Added Reseller?
A value-added reseller (VAR) is a company that buys a product from a vendor, adds something to it — services, integration, customization, support — and sells the enhanced solution to end customers.
The “value added” part is what separates a VAR from a plain reseller. A plain reseller moves product. A VAR wraps that product in expertise. That might mean configuring software for a specific industry, bundling hardware with managed services, or building a full solution stack around a vendor’s core technology.
For end customers, the appeal is straightforward: they get a ready-to-run solution rather than a raw product they have to figure out on their own. For vendors, a VAR extends reach into markets and verticals that would be slow or expensive to serve directly.
How VARs Differ from Other Channel Partner Types
It helps to see VARs alongside the other partner types you’ll encounter:
| Partner Type | What They Do | Value Added? |
| VAR | Resells with added services or integration | Yes |
| MSP | Manages ongoing IT services for clients | Often, yes |
| Distributor | Moves product in bulk to other resellers | Rarely |
| Systems Integrator | Builds complex multi-vendor solutions | Yes, heavily |
| Referral Partner | Sends leads, doesn’t sell directly | No |
VARs and MSPs overlap more than most people expect. Many MSPs also act as VARs when they resell vendor licenses alongside their managed services. The distinction mostly comes down to the primary business model: MSPs charge recurring fees for ongoing management, while VARs typically earn margin on project-based or transactional sales.
What VARs Actually Add
The “value” a VAR brings varies widely depending on their focus area. Common examples include:
- Implementation and deployment — setting up your software in a customer’s environment rather than just handing over a license key
- Vertical expertise — a VAR focused on healthcare understands compliance requirements, workflows, and buyer concerns that a generalist vendor rep often won’t
- Integration work — connecting your product to the customer’s existing systems, whether that’s a CRM, ERP, or identity management platform
- Training and onboarding — getting end users productive faster
- Ongoing support — acting as a first line of support so customers aren’t calling you directly
- Custom development — building extensions or configurations specific to a customer’s needs
From a vendor’s perspective, this matters. A VAR that handles implementation and support reduces your post-sale costs and often improves customer retention — because the customer has a local, responsive relationship they trust.
Why IT Vendors Work with VARs
The business case is simple: more market coverage without proportionally growing your headcount.
A direct sales team is expensive and takes time to ramp. VARs already have relationships with the customers you want to reach. They have local presence, industry credibility, and technical staff who can actually deliver. When a VAR recommends your product, it carries real weight because the customer trusts their judgment.
There are geographic and vertical advantages too. A VAR specializing in manufacturing in Germany, or financial services in Southeast Asia, can reach buyers you’d struggle to find through a direct motion. They speak the language, understand the regulations, and know how procurement decisions get made.
The tradeoff is that you give up some margin and some control. VARs have their own customer relationships, and they may carry competing products. Managing that dynamic is one of the genuine challenges of running a VAR program.
What Makes a Good VAR Partner
Not every VAR is worth recruiting. When evaluating potential partners, look for:
Technical depth. Can they actually implement and support your product? A VAR who can’t deliver on what they sell will damage your reputation with end customers.
Customer fit. Do they serve the verticals, geographies, or company sizes you’re targeting? A VAR with a strong SMB base won’t help you if you’re selling enterprise software.
Sales capacity. How active are they? A VAR juggling 50 vendor relationships with no dedicated sales staff isn’t going to move much of your product.
Commitment signals. Are they willing to get certified, co-invest in marketing, or dedicate resources to your product line? Passive partners rarely generate meaningful revenue.
Existing vendor relationships. Do they already work with complementary vendors? That’s often a good sign — it means they know how to operate within a channel program.
Building and Managing Your VAR Program
Recruiting VARs is one challenge. Activating and retaining them is another. Most channel programs fall short not because they recruited the wrong partners, but because they didn’t support them well enough after signing.
A few things that make a real difference:
Clear deal registration. VARs need to know their deals are protected. If they invest time developing an opportunity and you sell around them, you’ll lose them fast.
Accessible enablement. Training, sales materials, and technical documentation should be easy to find and use. If a VAR has to hunt for resources, they’ll default to selling products they already know.
Responsive support. When a VAR has a technical question or a deal that needs attention, slow responses cost you revenue.
Meaningful incentives. Margin alone isn’t always enough. Rebates, MDF (market development funds), and co-selling support can significantly affect how much energy a VAR puts toward your product.
A PRM that doesn’t get in the way. Partner relationship management tools should make it easier for VARs to register deals, access content, and track their status — not add friction. A clunky portal is a fast way to disengage partners who have other options.
Common Mistakes Vendors Make with VARs
Treating all VARs the same. A large national VAR and a two-person boutique integrator need very different things from you. Tiering your program and tailoring your support accordingly will get better results.
Recruiting too many, activating too few. A long list of signed partners looks good on paper until you realize 80% of them have never registered a deal. Focused recruitment and strong onboarding beats volume every time.
Ignoring the VAR’s business model. If your product doesn’t generate enough margin or services opportunity, VARs won’t prioritize it. Understand what makes the partnership financially worthwhile for them — not just for you.
Underestimating conflict. Channel conflict — where your direct team and a VAR are competing for the same deal — destroys trust quickly. Clear rules of engagement aren’t optional.
VARs in 2026: What’s Changing
The VAR model is evolving, and a few trends are worth paying attention to.
Software subscriptions have changed the economics. As products shift from perpetual licenses to SaaS, VARs earn less upfront margin and need to build recurring revenue from services instead. Vendors who help their partners make that transition tend to build stronger long-term relationships.
Specialization is increasing. Generalist VARs are under pressure. The ones growing fastest typically have deep expertise in a specific vertical, technology stack, or use case. Your best VAR partners today are probably more specialized than they would have been five years ago.
Digital-first buyers are reshaping the sales motion. End customers often do significant research before they ever engage a VAR. Partners who invest in content, online presence, and digital demand generation are outperforming those who rely purely on relationship selling.
FAQs
What does “value added” mean in the context of a reseller? It means the reseller adds services, expertise, or customization on top of the vendor’s product before selling it to end customers — things like implementation, integration, training, or ongoing support. Anything that makes the product more useful or easier to adopt.
How is a VAR different from a distributor? A distributor moves product in bulk to other resellers without adding significant services. A VAR works directly with end customers and wraps the product in expertise or services. Distributors operate higher up the supply chain; VARs operate at the customer-facing end.
Do VARs work with SaaS vendors? Yes, increasingly so. SaaS vendors often work with VARs for implementation, integration, and managed services around their software. The margin structure differs from traditional software, but the relationship model is similar.
How do I find VARs to recruit for my channel program? You can search industry directories, attend channel-focused events, or use a platform with a verified partner database. Elioplus lets IT vendors search for and reach out to MSPs, resellers, and VARs based on geography, vertical, and technology focus.
What should a VAR partner program include? At minimum: a deal registration system, partner enablement resources (training, sales tools, technical documentation), a clear margin or incentive structure, and a way for partners to get support. A partner portal or PRM platform helps manage all of this at scale.
How many VARs should I recruit? More isn’t always better. A smaller number of well-supported, active partners typically outperforms a large roster of inactive ones. Focus on quality of fit and activation rate over total partner count.
Can a VAR also be an MSP? Yes. Many partners operate as both. An MSP might manage a customer’s IT environment on a recurring basis and also resell vendor licenses as part of that engagement. In practice, the lines between partner types are often blurry.
