Channel Management Glossary

What is a Value-Added Reseller?

Value-added resellers represent the most service-intensive tier of the reseller community — organizations whose competitive differentiation is built not around price or product availability, but around the depth of expertise and the quality of outcomes they deliver to end customers. For technology vendors, VARs are among the most valuable partners in the channel: they take complex products to market in ways the vendor’s direct team cannot replicate at scale, they build long-term customer relationships that generate repeat business and referrals, and they reduce the vendor’s exposure to post-sale support costs by owning the implementation and ongoing management of the solutions they sell. The challenge for vendors is that VARs require more investment to recruit, enable, and retain than transactional resellers — making the quality of the VAR program a direct determinant of channel revenue performance.

Definition

A value-added reseller (VAR) is a company that purchases products from a vendor and resells them to end customers with additional services, customization, configuration, or integration — increasing the value of the solution beyond the base product and differentiating itself from transactional resellers through the depth of its service practice.

Read the full explainer →

Frequently Asked Questions

What is a value-added reseller?
+

A value-added reseller (VAR) is a company that purchases products from a vendor and resells them to end customers with additional services, customization, configuration, or integration layered on top — increasing the value of the solution beyond what the base product provides on its own. VARs differentiate themselves from pure-play resellers through the depth of services they wrap around the vendor’s product, which may include needs assessment, solution design, implementation, training, and ongoing support.

What is the difference between a VAR and a standard reseller?
+

A standard reseller’s primary activity is product fulfillment — purchasing and delivering vendor products to end customers, sometimes with basic pre-sales support. A VAR goes significantly further: it builds a service practice around the vendor’s product, taking responsibility for the customer’s successful deployment and outcome. VARs typically generate a substantial portion of their revenue from professional services, support contracts, and managed services rather than product margin alone — which makes their customer relationships deeper and more durable than those of a transactional reseller.

What types of value do VARs typically add?
+

VARs add value across the full solution lifecycle. In the pre-sale phase, this includes needs assessment, solution architecture design, and competitive evaluation support. During implementation, it includes product configuration, system integration, data migration, and user training. Post-sale, VARs typically provide helpdesk support, managed services, software updates, and periodic business reviews. The specific mix of value-added services varies by VAR specialty — a cybersecurity VAR adds different value than a networking VAR or a business intelligence VAR.

Why are VARs important to technology vendors?
+

VARs extend a vendor’s implementation and support capacity without requiring the vendor to hire and manage a large professional services organization directly. They bring domain expertise, customer trust, and local market presence that accelerate sales cycles and improve deployment success rates. A well-enabled VAR community increases the vendor’s addressable market, reduces customer churn through strong post-sale support, and generates net-new pipeline through its existing customer relationships and referral activity.

How does ZINFI support vendors managing VAR partnerships?
+

ZINFI’s Unified Partner Management (UPM) platform provides the operational infrastructure vendors need to recruit, enable, and scale VAR partnerships. The ONBOARD pillar manages VAR recruitment, program tiering, and contract administration. The ENABLE pillar delivers product training, solution certification, and co-branded sales and marketing assets aligned to the VAR’s service practice. The SELL pillar manages deal registration, co-selling, and CPQ. The INCENTIVIZE pillar administers tier-based rebates, MDF allocations, and SPIFF programs that reward VAR performance at both the organization and individual seller level.


value added reseller image

★★★★★ Rated 97/100 on G2 | A Leader in Customer Satisfaction
Ready to Scale Your Partner Ecosystem?

Join Fortune 100 companies and global enterprises using ZINFI to drive channel success and accelerate revenue