How Value Added Software Resellers (VARs) Can Drive SaaS Sales: A Comprehensive Guide

Two business professionals discussing strategies at a table with charts, lightbulbs, and dollar signs around them, symbolizing the role of software resellers and value-added resellers (VARs) in driving SaaS sales growth and profitability.

The software industry, especially Software as a Service (SaaS), is expanding at a steady pace. In 2022, the global SaaS market was valued at over $261.15 billion and is projected to reach $522.58 billion by 2030, growing at an annual rate of 13.7%. This surge in demand offers great opportunities for businesses in the software reseller space to capitalize on growth by providing solutions to various sectors, from small businesses to large enterprises.

Software resellers act as intermediaries between software vendors and end-users, helping companies find the right software solutions for their needs. With the rise of cloud-based services and the increasing demand for software tailored to specific industries, this market is more lucrative than ever. The role of a software reseller is not just to distribute software but also to provide added value through customization, support, and integration services. This is where the Value Added Reseller (VAR) model comes into play.

How Does the Value-Added Software Reseller Distribution Channel Work?

A value-added reseller (VAR) takes an existing software product, customizes it, and then sells it to its clients with additional services. In the context of the VPN market, resellers often collaborate with established VPN providers like PureVPN, offering additional services such as support, installation, or specific customizations to serve clients better. The VAR model allows software for resellers to enhance the core product’s value, offering a more comprehensive solution to their customer base.

For instance, when a business becomes a software reseller in the VPN space, it doesn’t just resell the VPN software. It also offers its expertise in tailoring the solution to meet the specific needs of the client, be it small businesses, enterprises, or individual consumers. These added services include implementation assistance, customer support, or even training programs. In return, the reseller earns a commission from the sale or ongoing subscription of the VPN service.

In addition to offering value-added services, many software companies, including PureVPN, provide a custom software reseller program that equips resellers with marketing materials, sales support, and sometimes exclusive pricing models. This enables software resellers to deliver high-quality service while maintaining strong profit margins.

Tips for Growing SaaS Sales via the Value Added Software Reseller Distribution Channel

To successfully grow SaaS sales through a value-added reseller channel, it’s crucial to understand the strategies that maximize the impact of your offerings while also meeting the unique needs of your reseller partners and customers.

Below are practical tips that can help boost sales and expand your reach in this competitive space:

  1. Build Strong Relationships with Resellers

Software vendors should prioritize building strong partnerships with their resellers to grow sales through VARs effectively. Offering them a software reseller program that includes thorough training, marketing materials, and technical support will help them sell your product more effectively. Resellers who feel well-supported by the vendor are more likely to advocate for the product and provide value-added services that enhance customer satisfaction.

  1. Offer Competitive Pricing Models

SaaS reselling can be highly competitive, and pricing plays a key role in a VAR’s success. Offering flexible, volume-based pricing or recurring commissions on subscriptions can incentivize VARs to push your software over competitors. Additionally, a well-structured software reseller agreement should outline how resellers can profit from these models while ensuring transparency in revenue sharing.

  1. Focus on Niche Markets

Software resellers often succeed by targeting niche markets. By offering industry-specific solutions, VARs can tap into areas where general-purpose software might need to be more effective. SaaS providers can support resellers by developing software tailored to these niches, such as customized dashboards or compliance features. For example, white label software to resell allows resellers to offer industry-specific solutions under their branding.

  1. Invest in Marketing Support

Supporting VARs with co-branded marketing materials, demo tools, and case studies can significantly boost sales. Many resellers need more marketing resources than larger software companies have, so offering marketing assistance can help them reach new customers. A successful software reseller program should provide resellers customizable resources such as email campaigns, social network postings, and website content.

  1. Capitalize on Recurring Revenue

One of the biggest advantages of reselling SaaS products is the recurring revenue model. By focusing on SaaS products with subscription-based pricing, resellers can build a steady stream of income. For software vendors, offering long-term incentives and bonuses for renewals within the software as a service reseller agreement can motivate resellers to keep customers happy and ensure high retention rates.

  1. Understand Your Client’s Needs

One key factor to success in the software reseller business is understanding what your clients need. In the SaaS space, different businesses have unique requirements, and as a reseller, you should be prepared to offer solutions that meet these needs. This could involve working with a software developer reseller program to integrate additional features or services that cater to industry-specific challenges.

  1. Leverage White Label Software to Resell

Many VPN providers offer white label software reseller programs, where resellers can brand the software as their own. This allows businesses to provide a personalized product under their brand while utilizing the technology of a trusted provider. White label software to resell is an excellent option for companies looking to build their brand without the need to develop the software in-house.

  1. Build a Strong Software Reseller Agreement

A well-defined software reseller contract or software as a service reseller agreement is crucial for setting expectations between the reseller and the software provider. The agreement typically outlines commission structures, support obligations, and licensing terms. As a reseller, it’s essential to negotiate favorable terms that ensure you have the flexibility to meet your customers’ needs while securing long-term profitability.

  1. Offer Excellent After-Sales Support

Reselling software is about more than just making the initial sale. Providing ongoing support is crucial for retaining customers and ensuring long-term revenue. Businesses that offer excellent after-sales support often see higher customer satisfaction and loyalty, which translates into repeat business and positive word-of-mouth marketing.

  1. Stay Updated with Industry Trends

The SaaS and VPN industries are rapidly evolving, with new features and security threats emerging regularly. As a value-added reseller, staying updated with these changes is essential. Regularly attending webinars and industry events and staying in close contact with your software provider ensures you can offer your clients the latest features and security updates.

  1.    Offer Comprehensive Training Programs for Resellers

Resellers are more likely to be successful when they have a deep understanding of the product they’re selling. As a software vendor, invest in creating detailed training programs that cover not only the features of your software but also the unique selling points and integration capabilities. For instance, training should include both technical knowledge and sales tactics so that resellers are equipped to address customer concerns and provide tailored solutions. Resellers who feel confident in their knowledge are more likely to close sales and provide better support to end customers.

  1. Adapt to Market Feedback Through Your Resellers

Resellers often have direct insight into customer needs and market trends. Use their feedback to improve your product continuously, address common pain points, and tailor your SaaS solution to evolving demands in different markets.

  1. Use a Partner Portal for Easy Communication and Support

A well-designed partner portal can be a game-changer for software vendors and resellers. This platform should serve as a central hub where resellers can access marketing resources, training modules, software documentation, and real-time support. Having a streamlined and accessible platform helps resellers stay updated with the latest product features, pricing changes, or marketing campaigns. A partner portal also facilitates better communication between the software vendor and resellers, fostering a strong relationship built on transparency and support.

  1. Provide Resellers with Sales Incentives

Sales incentives, such as bonuses or commission structures, can significantly motivate resellers to push your products more aggressively. Offering performance-based rewards, such as bonuses for meeting quarterly sales targets or commissions on recurring SaaS subscriptions, can keep resellers focused on growing their customer base. Additionally, tiered incentive programs that offer higher commissions or additional perks for top-performing resellers can further motivate them to excel​.

Can PureVPN Help Grow SaaS Sales via its Value Added Software Reseller Platform?

PureVPN is a great example of how a company can leverage a robust software reseller program to boost sales. PureVPN offers a software reseller platform that allows partners to resell its services while adding their custom features. This creates a mutually beneficial partnership where resellers can target specific markets while benefiting from PureVPN’s extensive infrastructure and reputation in the VPN industry.

PureVPN’s white label software reseller program is particularly attractive to businesses looking to offer VPN services under their branding. This program allows resellers to integrate VPN services with their existing offerings, whether they are targeting consumers or businesses. By providing white-label options, PureVPN ensures that resellers can maintain a consistent brand image while offering their customers the same high-quality service.

Another advantage of PureVPN’s reseller program is the flexible pricing model. Resellers can choose between different plans based on their customer base and sales goals. PureVPN’s software value added reseller model includes 24/7 technical support, marketing assistance, and comprehensive training for all partners.

For businesses looking to resell software like VPN services, PureVPN also provides a strong foundation through its software developer reseller program. This program allows developers to integrate PureVPN’s services into their apps or platforms, adding value to their offerings and increasing customer satisfaction.

Conclusion

The software reseller market, particularly in the VPN space, is growing at an unprecedented rate. As the demand for online security and privacy continues to rise, businesses are seeking trusted solutions that protect their data and provide secure access to online resources. The value added reseller software model is an excellent opportunity for businesses to meet these needs while building a profitable revenue stream.

By partnering with established providers like PureVPN, software resellers can take advantage of a robust platform that delivers industry-leading VPN technology and exceptional support. Whether through a white label software reseller program or a branded solution, the potential to grow your SaaS business in this market is vast.

For those looking to capitalize on the growing demand for VPNs, now is the perfect time to explore the opportunities provided by software reseller programs. With the right strategies and partnerships, your business can thrive in this dynamic and fast-growing market.

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