What Is a Value Added Reseller and Why It Still Works

The term value added reseller may sound technical, but the idea is simple. It means someone resells a product and adds something useful to it. This could be help with setting it up, offering support or explaining how to get the most out of it.

Categories: Partner relationship management 4 min read

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The term value added reseller may sound technical, but the idea is simple. It means someone resells a product and adds something useful to it. This could be help with setting it up, offering support or explaining how to get the most out of it.

In business today, trust and simplicity are more important than ever. Buyers do not want just another product. They want results. That is why value added resellers are still important.

What Makes a Reseller Value Added

A traditional reseller sells a product and moves on. A value added reseller stays involved. They offer help, advice and support. They might even change or improve the product before it reaches the buyer.

Here is how they compare:

Feature Traditional Reseller Value Added Reseller
Product sale Yes Yes
Setup assistance No Yes
Ongoing support No Yes
Customization No Yes
Consulting services No Yes
Revenue share Sometimes Yes
Local market knowledge Rarely Yes

Why Companies Use Value Added Resellers

For software companies, VARs help grow sales in new markets. They already know the customer, speak the same language and understand the business culture. It is faster and easier to work with someone who already has trust.

A company does not need to hire full teams or open local offices. They can work with VARs who get paid only when they succeed.

This keeps costs down and results high.

How to Manage Resellers with Less Work

Running a partner program takes time. You need to share documents, track deals and make sure resellers get paid.

That is why many vendors use PRM software.

A tool like Leadfellow helps vendors:

  • Invite resellers
  • Share marketing materials
  • Track deals and results
  • Pay commissions automatically

You do not need a full team to run a partner program anymore. You just need a clear system.

Start Your Own Reseller Program

You can test a value added reseller model today. No contracts. No complexity.

Create a free account with Leadfellow and start building your reseller network in minutes.

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FAQ

What is a value added reseller?

It is a company that sells another company’s product but also adds services like support or consulting.

Why do companies use VARs?

They make the product easier to use, build trust and help close deals faster.

What is the difference between a reseller and a VAR?

A regular reseller just sells. A VAR adds value like setup, support or advice.

How do VARs earn money?

They usually get paid through a commission or a share of the sale.

Do I need a system to manage VARs?

Yes. A PRM like Leadfellow saves time and keeps the program organized.

Resources

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What Is a Value Added Reseller and Why It Still Works

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How PRM Software Can Become Your Most Powerful Lead Generation Engine

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If your business works with partners, resellers, or agents, you’ve probably heard the term Partner Relationship Management, or PRM. But what does it really mean, and why do companies invest in PRM systems?

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Referral marketing offers Australian businesses a unique opportunity to grow cost-effectively. By tapping into your existing networks and encouraging happy customers to spread the word, you can generate high-quality leads, increase revenue, and build a loyal customer base that keeps coming back.

What are sales leads? What you need to know?

The sales funnel starts with leads. Learn what sales leads are, how they’re different from prospects, and how to generate them successfully.

What is business referral?

In the realm of B2B sales, referrals play a crucial role in driving business. A significant percentage of B2B sales begin with a referral, highlighting the impact of word-of-mouth in the business world.

How do I get customers to recommend my business?

Customer reviews can have a significant impact on purchasing decisions. Studies have shown that the majority of consumers read reviews before making a purchase, and positive reviews can increase the likelihood of a sale