The software and IT world moves fast. Subscription models have replaced perpetual licenses. Cloud delivery has replaced on-prem boxes. Yet one model hasn’t gone away: the value added reseller (VAR).
If you work in SaaS, IT, or managed services, you’ve heard the term. Sometimes it gets thrown around loosely. But what does it really mean today? And more importantly, does it still create real business value in 2025?
This guide breaks it down. You’ll get a clear value added reseller definition, real-world examples, and a look at the benefits, margins, and challenges. We’ll also compare VARs to distributors and MSPs, explain how VARs make money, and show where new opportunities lie, especially in cybersecurity and compliance.
- What is a VAR: A value added reseller resells software or hardware but adds services like customization, integration, support, or compliance consulting.
- Difference from Distributors: VARs deliver tailored solutions with added value, while distributors focus on bulk product movement.
- Customer Benefits: One-stop solutions, expert guidance, compliance support, and better post-sale service.
- Revenue Model: Slim resale margins but higher profits from services, subscriptions, and consulting.
- Examples: Healthcare IT firms bundling VPN + compliance, or security VARs offering PureVPN White Label to clients.
- Industry in 2025: VARs thrive by shifting from hardware to SaaS, cybersecurity, and recurring revenue.
- Proof of Model: Publicly traded VARs like CDW and Insight show strong scalability.
- Opportunity: VARs can bundle VPNs and security services to boost compliance and generate recurring revenue.
What Is a Value Added Reseller?
A value added reseller (VAR) is a company that resells software or hardware but adds extra services, customization, or integrations to deliver more value to the customer than the base product alone.
That’s the simple version. The important nuance: VARs don’t just pass along licenses. They bundle. They provide training, integration, support, and even compliance consulting. This makes them different from plain resellers, whose margins are thin and role is mostly transactional.
So when people ask what is a value added reseller, that’s the core: a reseller that layers on services to improve usefulness and stickiness for the customer.
Value Added Reseller vs Distributor
A lot of people confuse VARs with distributors. Here’s the breakdown:
| Role | What They Do | Revenue Model | Example |
| Value Added Reseller | Sells vendor products with added services, customization, or consulting | License + service fees | IT firm bundling VPN + support + compliance training |
| Distributor | Acts as middleman between vendors and resellers, handling logistics | Bulk margins | Tech Data, Ingram Micro |
Key takeaway: Distributors move product at scale. VARs move solutions tailored to customers.
Do VARs Still Exist in 2025?
Yes. And they’re thriving, but in new ways. The value added reseller industry has shifted from hardware boxes to SaaS, cloud platforms, and managed services.
Publicly traded value-added resellers like CDW, Insight Enterprises, and SHI International have grown into billion-dollar businesses by combining resale with services. At the smaller end, boutique VARs focus on niches like healthcare IT, fintech, or education.
So when people ask do VARs still exist? The answer is: absolutely, but the playbook has evolved.
Value Added Reseller Benefits
Why do companies choose to work with value-added resellers instead of going straight to vendors? A few key value-added reseller benefits:
- One-stop solutions — bundling multiple tools into a package.
- Customization — integrations, localizations, or vertical-specific tweaks.
- Expertise — advice from specialists who understand industry challenges.
- Support — training, ongoing help, faster response than vendors.
- Compliance readiness — guidance on GDPR, HIPAA, ISO 27001, etc.
For customers, this saves time and reduces risk. For vendors, VARs expand reach into markets they couldn’t cover directly.
How Does a VAR Make Money?
A VAR makes money through a mix of product resale margins, service fees, subscriptions, and consulting.
- Resale margins: 5–10% on software/hardware licenses.
- Value-added services: 15–30% margins from integration, support, and compliance training.
- Subscriptions: Bundling SaaS tools or VPN services for recurring revenue.
- Consulting: Project-based fees for design and deployment.
The magic isn’t in the resale margin, it’s in the services layered on top.
Value Added Reseller Example
Let’s put this in context.
Imagine a mid-sized hospital buying IT tools. Instead of buying a VPN from one vendor, a password manager from another, and training from a third, they turn to a VAR.
The VAR bundles PureVPN White Label VPN, adds endpoint security tools, sets up HIPAA compliance policies, and trains staff. The hospital pays one invoice, gets one support team, and knows compliance is covered.
That’s a classic value added reseller example.
Types of Value-Added Reseller Companies
Not all VARs look the same. Some focus on specific industries, others on technologies.
- Security VARs: Cybersecurity, VPN, firewalls, compliance solutions.
- SaaS VARs: Cloud apps, collaboration platforms, CRMs.
- Vertical VARs: Focus on healthcare, finance, retail.
- Hybrid VAR/MSPs: Ongoing managed services layered with resale.
This segmentation shows how flexible the value-added reseller industry has become.
Publicly Traded Value-Added Resellers
Some of the world’s largest IT providers are built on the VAR model:
- CDW (NASDAQ: CDW) – Enterprise IT solutions, services, and hardware/software resale.
- Insight Enterprises (NASDAQ: NSIT) – Cloud, data center, and SaaS reseller.
- Softcat (LSE: SCT) – UK-based VAR with strong SaaS and security focus.
These value-added reseller companies prove the model scales, with billions in revenue.
How to Be a Value-Added Reseller (Step by Step)
Becoming a value added reseller requires building vendor partnerships, adding services, and marketing tailored solutions to target industries.
Steps:
- Choose your niche — SaaS, security, vertical industries.
- Sign vendor partnerships — PureVPN White Label, CRM providers, security vendors.
- Design packages — bundle licenses with support and compliance consulting.
- Set pricing — base margins + service fees.
- Build expertise — certifications, training, industry knowledge.
- Market solutions — case studies, social proof, even value added reseller Reddit communities for exposure.
- Run pilots — start small with a few customers and scale up.
How to Find Value Added Resellers?
Vendors often ask: how to find value added resellers?
Options include:
- Vendor partner directories (Microsoft, Cisco, PureVPN partner programs).
- Industry associations and trade shows.
- Online B2B forums and even value added reseller Reddit threads where VARs discuss opportunities.
- Local business networks focused on IT or managed services.
The Future of the Value Added Reseller Industry
The value added reseller industry is changing shape. Key trends:
- Shift from hardware to SaaS bundles.
- Focus on compliance and cybersecurity as differentiators.
- Growth of recurring revenue models (VARs evolving into MSPs).
- Stronger integration with cloud marketplaces.
For buyers, this means VARs remain a go-to channel for packaged solutions. For resellers, it means opportunity, if they adapt.
PureVPN Reseller Program: A Modern Value Add for VARs
One of the easiest, high-demand services VARs can add to their portfolio is VPN security. As businesses face stricter compliance and security requirements, offering a trusted VPN solution has become a natural extension of IT and SaaS bundles.
With the PureVPN Reseller Program, value added resellers can:
- Resell PureVPN directly to their customers and earn commissions on every sale.
- Offer VPN alongside SaaS apps, firewalls, and compliance tools, creating packaged solutions that clients actually want.
- Help customers meet compliance needs like ISO 27001, GDPR, and HIPAA by ensuring secure data transmission.
- Tap into recurring revenue by promoting subscriptions instead of one-off deals.
For VARs, it’s not just about moving software licenses anymore. It’s about helping customers stay secure and compliant, and getting rewarded for every subscription sold through a proven partner program.
Conclusion
The value added reseller definition may sound old, but the model is alive and evolving. VARs still play a critical role, helping businesses simplify complexity, meet compliance demands, and integrate security into everyday operations.
For vendors, VARs remain essential distribution partners. For customers, they’re trusted advisors. And for resellers themselves, the opportunity is clear: package solutions, focus on compliance, and build recurring revenue streams.For those in cybersecurity, one of the easiest ways to strengthen your offering is by reselling VPN services. With the PureVPN Reseller Program, VARs can add a trusted, enterprise-grade VPN to their portfolio, meet growing client demand for secure connectivity, and earn commissions on every subscription sold.