What is a VAR?
VAR — Value-Added Reseller — is one of the most widely used terms in the technology channel, and one of the most commercially significant partner types a vendor can cultivate. The term captures a fundamental distinction in how channel partners create value: while a transactional reseller’s contribution is primarily logistical — moving product from vendor to customer — a VAR’s contribution is substantive, wrapping the vendor’s product in services, expertise, and accountability that make it more useful, more reliably deployed, and more deeply embedded in the customer’s environment. For vendors with technically complex products, a strong VAR community is not just a distribution advantage — it is a competitive moat, because the expertise and customer trust that VARs build around a vendor’s platform takes years for competitors to replicate.
VAR (Value-Added Reseller) 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.
Frequently Asked Questions
What does VAR stand for?
VAR stands for Value-Added Reseller. It refers to 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 are a core partner type in the technology channel, distinguished from standard resellers by the depth of the service practice they build around the vendor’s product.
What makes a reseller a VAR?
A reseller becomes a VAR when it consistently adds meaningful services — such as needs assessment, solution design, implementation, integration, training, or ongoing support — that enhance the customer’s outcome beyond what the product delivers out of the box. The distinguishing characteristic is not a legal designation but a commercial and operational reality: VARs generate a significant portion of their revenue from services rather than product margin, and they take ownership of the customer’s deployment success in a way that a transactional reseller does not.
What is the difference between a VAR and a managed service provider?
A VAR typically sells and implements technology solutions through project-based engagements — the relationship with the customer is centered on a specific deployment or integration initiative. A managed service provider (MSP) goes further by assuming ongoing operational responsibility for the customer’s IT environment under a recurring subscription contract. Many VARs evolve into MSPs over time as they build the monitoring tools, service desk capabilities, and recurring revenue models that the MSP business model requires.
Why do technology vendors prioritize VAR partnerships?
VARs are among the most commercially valuable partners in a vendor’s channel because they extend the vendor’s implementation and support capacity without requiring the vendor to build an internal professional services organization. A well-enabled VAR community increases the vendor’s addressable market, shortens sales cycles through trusted local relationships, improves deployment success rates, and generates net-new pipeline through existing customer relationships and referral activity. The investment required to recruit and enable a strong VAR partner typically yields a higher long-term return than an equivalent investment in transactional reseller relationships.
How does ZINFI support vendors managing VAR relationships?
ZINFI’s Unified Partner Management (UPM) platform provides vendors with the full operational infrastructure needed 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. 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.