- VAR Definition: A value added reseller enhances products with services, customization, or integration before selling to customers.
- Difference from Resellers: VARs differ from traditional resellers by offering additional expertise and ongoing support, creating higher value for clients.
- Revenue Model: VARs generate revenue through product margins plus fees for services, integration, and support.
- Growth Areas: Security and IT services are top growth areas for VARs, with high demand for managed solutions and cybersecurity offerings.
- PureVPN Reseller Program: Programs like PureVPN allow agencies and MSPs to offer trusted solutions while earning commissions without handling product development or branding.
Businesses today face increasing pressure to offer more than just products. Agencies and managed service providers (MSPs) are responding by becoming value added resellers. But what exactly does that mean, and why is it gaining momentum? This article answers the question: what is a value added reseller, provides examples, explores differences from traditional resellers, and highlights the top benefits that make this model appealing.
Understanding the Concept: What Is a Value Added Reseller
At its core, a value added reseller (VAR) is a company that purchases a product from a manufacturer or distributor and then enhances it before selling it to the end customer. The enhancements can include additional services, integration, customization, or support that increase the overall value of the product.
VAR Meaning in Business
In business terms, the VAR model allows companies to generate revenue not only from reselling but also by providing expertise that complements the product. For example, a VAR might:
- Bundle software with installation services
- Offer specialized training for teams
- Integrate products into existing IT environments
By offering these additional services, VARs distinguish themselves from standard resellers and often justify a premium price.
What Is a Value Added Reseller Example
A common example of a VAR can be seen in the cybersecurity space. Suppose a company purchases a VPN solution and offers it as part of a broader security package, including device management, ongoing monitoring, and user support. The customer receives more than just the VPN, they gain a complete solution tailored to their needs.
Another example could be a software reseller who adds custom reporting tools or workflow integrations for clients, improving usability and aligning the product with business objectives.
Value Added Reseller vs Reseller
The distinction between a traditional reseller and a value added reseller is subtle but significant:
| Feature | Reseller | Value Added Reseller (VAR) |
| Product Offering | Sells the product as-is | Adds services, customization, or integration |
| Revenue Model | Product margin only | Product margin + service fees |
| Customer Relationship | Transactional | Consultative and ongoing support |
| Expertise | Basic product knowledge | Deep expertise and tailored solutions |
This table illustrates why many agencies and MSPs are shifting toward VAR models: it provides recurring revenue opportunities and positions the company as a trusted partner rather than a simple vendor.
What Is a VAR in Sales
In sales terms, a VAR focuses on selling a complete solution rather than just a product. This requires understanding client challenges, tailoring solutions, and sometimes combining multiple products or services.
A 2024 study revealed that 52% of businesses prefer buying solutions that include both technology and implementation support, highlighting the growing relevance of VARs in sales strategies.
What Is a VAR in Security
Security is one of the fastest-growing areas for VARs. Companies need more than off-the-shelf products; they require managed security services that integrate solutions into their existing IT infrastructure.
For instance, VARs in cybersecurity might:
- Deploy VPNs and configure them for optimal security
- Provide endpoint protection recommendations
- Monitor network activity for unusual behavior
In 2023, a report estimated that global demand for managed security services will grow at 15% annually through 2026, emphasizing why many MSPs are transforming into VARs.
Top Value-Added Resellers
Some of the most recognized value-added reseller companies operate in IT, networking, and cybersecurity. While rankings vary by industry, a few notable names frequently appear on lists of top value-added resellers:
- Companies specializing in IT infrastructure solutions
- Cybersecurity-focused VARs offering managed services
- Software integrators providing cloud and SaaS solutions
For businesses evaluating potential VAR partners, examining customer reviews, industry certifications, and service offerings is critical. Platforms like Value Added Reseller Reddit threads can offer insights into real-world experiences and reputations.
Why Agencies and MSPs Are Becoming VARs
The transition to VAR status is driven by several factors:
- Recurring Revenue: Service contracts and managed solutions provide consistent income beyond one-time sales.
- Customer Retention: Offering integrated solutions increases dependency on the VAR, reducing churn.
- Market Differentiation: Enhanced services position agencies as experts, not just sellers.
- Scalable Opportunities: VARs can expand into multiple product categories while maintaining consultative relationships.
Challenges and Considerations
While becoming a VAR can be profitable, it requires careful planning:
- Expertise Investment: Staff must have deep product and industry knowledge.
- Support Infrastructure: Customers expect ongoing support, which requires resources.
- Pricing Models: Setting margins that reflect both product and service value can be complex.
Balancing these factors is crucial for sustaining growth while maintaining service quality.
How PureVPN’s Reseller Program Fits
For companies entering the security space, the PureVPN Reseller Program provides a clear pathway. Resellers can offer PureVPN as-is while earning competitive commissions, allowing them to generate revenue without the complexities of product development or branding.
Agencies and MSPs benefit from a trusted product, reliable technical support, and the ability to focus on client relationships rather than managing the underlying VPN infrastructure. This makes it an ideal option for businesses exploring value-added opportunities in cybersecurity.
Key Takeaways
Becoming a value added reseller enables agencies and MSPs to provide comprehensive solutions, create recurring revenue streams, and strengthen client relationships. Understanding the differences between traditional resellers and VARs, identifying areas for service integration, and leveraging proven products like PureVPN can accelerate this transition.
As more businesses seek solutions rather than standalone products, VARs are positioned to deliver unmatched value while remaining agile and profitable. Whether in sales, IT, or security, the VAR model represents a strategic evolution for agencies and MSPs ready to expand their offerings and expertise.