Startups Stack Exchange Archive

What is a “VAR”?

So, I’ve been filling out an application to become a potential partner, and it asks for a “number of VARS” under Employee Information. Our startup is a Software as a Service (SaaS), and we integrate with many enterprise partners in our product. What is a VAR? After a quick search, the term “reseller” comes up. Would all of our partners’ software that can be seen in the final product count as a VAR?

Answer 1128

The full term is Value Added Reseller. Way back when, VAR was a term coined to distinguish resellers who added services to the product in question. So you might allow anyone who passed credit checks and trade references to resell, but to get the special privileges of VAR status, the company might have to go through your training, and participate actively in marketing programs.

That still exists in some markets, but very often it’s the first level of accreditation - much as some interns get hired as VPs, but they still have making coffee for the team as the first part of their job description.

So when you come across the term, you need to dig a little to find out how it’s being used. And if you’re asked how many VARs you have, you need to decide how you’d like it to apply.

Answer 1129

Per Wikipedia, Value-Added Reseller is:

A company that adds features or services to an existing product, then resells it (usually to end-users) as an integrated product or complete "turn-key" solution.

Original Equipment Manufacturer (OEM) are another form of VARs, since they are manufacturers who resell another company's product under their own name and branding often "adding value" as an attempt to create a barrier of entry to competitors.


All content is licensed under CC BY-SA 3.0.