Value-added reseller
A value-added reseller (VAR) is a company that buys technology from vendors or distributors and resells it to end customers with its own services added. The added value is usually design, installation, integration, configuration, consulting or training, so the customer gets a working solution rather than a product in a box.
Also called: VAR, value added reseller, IT reseller
How does a VAR make money?
A VAR earns in two ways: margin on the hardware, software and licences it resells, and fees for the project work around them. ConnectWise, which makes software for MSPs and resellers, describes VARs as working "on a project-by-project basis". Some add maintenance agreements, which give them monthly recurring revenue. Veeam adds a detail that shapes the relationship: after a VAR sale, the customer owns the licence and manages it after deployment.
The channel is still where most technology is bought. Canalys forecast that 70% of customer spending on technology, IT services and telecom services in 2025 would go through partners, down from 73% in 2023.
What is the difference between a VAR, an MSP and a distributor?
The three sit at different points in the same chain, and many firms play more than one role.
| Value-added reseller | Managed service provider | Distributor | |
|---|---|---|---|
| Sells to | End customers | End customers | Resellers and MSPs |
| Main income | Product margin and project fees | A recurring monthly fee | Margin on volume |
| After the sale | Customer usually runs it | MSP runs it under contract | Not involved with the end customer |
| Example offer | A new network, installed and configured | Managed IT support and security for a fixed fee | Vendor products, credit and logistics for partners |
Are VARs becoming MSPs?
Many are, without giving up resale. Blue Mantis, a New England firm, spent eight years turning from GreenPages, a data centre hardware and VMware reseller, into a mixed business, and took its new name in 2023. Channel Dive reported in January 2026 that about 60% of its revenue is now recurring. Its COO, Jay Pasteris, said the legacy reseller practice is still growing, but recurring MSP services have outpaced it.
Recurring revenue is the reason. Project revenue has to be won again for each project, while a managed services contract pays every month and makes the business easier to plan.
How does a VAR stand out when every partner sells the same products?
Every Microsoft or Cisco partner can quote the same products, often at similar prices. What differs is the service around them, the sectors you know and the proof that you deliver. VARs that market well lead with the problem they solve for a named type of customer, show case studies with real numbers, and use vendor funds such as MDF to pay for campaigns.
Where Yori fits
Yori is an AI marketing assistant built for MSPs and resellers, so it starts from your services rather than the vendor's product. Set up a Brand Profile once: Yori researches your website and any documents you add, and records what you sell, how you work and how you sound. The Datasheet, Case Study and Campaign Proposal Services then draft the pieces resellers need most, in your voice, for you to edit in Canvas. Yori drafts from what you add, so for a datasheet, upload the vendor's spec sheet and check every figure before it goes out.
The free trial has 25 one-time credits and needs no card. Pro is £49 a month with 25 monthly credits, and every plan has unlimited users. Start the free trial and run the Case Study Service on your best recent project.
Often confused with
- Managed service provider (MSP)
- An MSP runs a customer's technology for a recurring fee under a contract. A VAR sells and installs it, then usually hands it over. Many firms do both, and resale often funds the move into managed services.
- Distributor
- A distributor sells vendor products to resellers and MSPs, not to end customers, and adds credit, logistics and partner support. A VAR buys from the distributor and sells to the customer.
- Reseller
- A plain reseller passes products on with little added work. The "value-added" in VAR means services such as integration, configuration and training on top.
Questions
What does VAR stand for?
In the IT channel, VAR stands for value-added reseller. In football it means video assistant referee, which is why searches for "VAR" mix both.
What is a VAR in business?
A VAR is a company that resells another firm's technology with its own services added, such as design, installation, integration and support, so the customer gets a complete solution.
What is the difference between a VAR and an MSP?
A VAR earns from product margin and project fees, and the customer usually owns and runs the result. An MSP earns a recurring fee to run the technology for the customer under a contract.
Can a VAR become an MSP?
Yes, and many have. Blue Mantis spent eight years moving from reselling hardware and VMware to a mixed model in which about 60% of revenue is recurring, while its resale business kept growing.