Most businesses don’t make money from their own products. They make it by reselling someone else’s work—only smarter.
Think of IT firms bundling software with support. Or agencies packaging tools with strategy. That’s where the real margins live, not in building, but in adding value.
This model has a name. It’s called a value added reseller.
In this guide, you’ll see the value added reseller definition, the benefits, the types, and even how to become a value added reseller. You’ll also discover programs like BotPenguin’s that make getting started simple.
What is a Value Added Reseller?
A value added reseller goes beyond simply selling a product. Unlike a standard reseller who only transfers items from vendor to buyer, a VAR modifies, bundles, or supports the product so customers receive a complete solution.
This added value can be technical expertise, customization, training, or long-term support. The focus is not on the product alone, but on solving the customer’s problem.
The value added reseller definition is straightforward: a company that purchases a product or service from a vendor, enhances it with extra features or services, and resells it to customers.
Example: A reseller of business laptops might only sell devices. A value added reseller, however, sets up the laptops, migrates data, installs software, and trains employees. The customer receives ready-to-use systems rather than bare machines.
In SaaS, a VAR might resell CRM software but add onboarding, automation workflows, and integration with existing tools. For marketing, an agency may bundle a chatbot platform with strategy and campaign support.
This role ensures vendors extend their reach, customers get complete solutions, and resellers earn higher margins. The model's strength becomes clear when examining the value added reseller benefits.
Value Added Reseller Benefits
A value added reseller thrives by turning ready-made products into complete, usable solutions. Customers gain convenience, vendors gain reach, and resellers gain stable income.
The advantages of this model are practical and measurable.
Here are ten key benefits of becoming a VAR.
1. Recurring Revenue
VARs earn ongoing commissions from renewals or subscriptions, not just one-time sales. This creates predictable cash flow and financial stability.
Example: A reseller of CRM software continues to earn monthly income as long as clients stay subscribed.
2. Low Investment Risk
Resellers don’t carry product development costs. Vendors handle design, testing, and updates. The reseller invests mainly in customer relationships and service delivery.
Example: An IT consultant reselling cloud storage avoids building expensive infrastructure but still earns by offering setup and support.
3. Scalable Growth
Growth is achieved by adding more clients, not creating new products. Expansion depends on sales and support capacity rather than large infrastructure.
Example: A digital agency can scale from five to fifty chatbot clients without changing the vendor platform.
4. Better Market Position
Bundled services differentiate VARs from standard resellers. They are seen as advisors delivering solutions rather than middlemen moving products.
Example: A cybersecurity reseller offering installation, monitoring, and training is valued more than one selling licenses alone.
5. Vendor Training and Support
Vendors provide resources such as onboarding, sales kits, marketing material, and partner portals. This reduces the learning curve and helps resellers close deals faster.
Example: A SaaS vendor may supply white-label campaigns and dedicated support to strengthen a reseller’s sales efforts.
6. Faster Go-to-Market
Since the product is already built and tested, resellers can begin selling quickly. This shortens launch time and enables early revenue generation.
Example: A managed service provider partnering with a cloud vendor can launch bundled packages within weeks instead of years.
7. Client Retention with Bundled Services
Customers stay longer when services such as training, integration, or support are included. Bundled value makes it harder for clients to switch vendors.
Example: A SaaS package with onboarding and round-the-clock support keeps clients loyal far longer than a license-only deal.
8. New Networking Opportunities
VARs gain access to vendor ecosystems that include events, training, and partner communities. These connections often open doors to collaborations and new markets.
Example: A cloud reseller may team up with a cybersecurity VAR to deliver joint solutions to clients.
9. Diversified Income
Resellers can operate across industries, reducing dependency on a single market. This makes revenue more resilient to changes.
Example: A consultant can resell automation software to retailers while offering analytics tools to agencies, balancing income across sectors.
10. Long-Term Profitability
The combination of recurring commissions, high retention, and diversification creates sustainable income over time. Renewals and long-term contracts form a reliable revenue base.
Example: A VAR managing 50 SaaS clients builds a steady monthly income that grows with every renewal.
These value added reseller benefits highlight why the model is widely adopted. It delivers predictable income, stronger positioning, and long-term growth without the risks of product creation.
The next section explores the types of value added resellers, showing how the model works across different industries.
Types of Value Added Resellers
The value added reseller model does not follow one fixed pattern. It adapts to industries and customer needs. Some resellers specialize in hardware, others in cloud software.
Some build recurring revenue with IT services, while others blend technology with consulting.
Here are the main types of value added resellers and how they work.
IT Hardware VARs
These resellers focus on physical products such as laptops, servers, and networking equipment. Their value lies in turning hardware into a ready-to-use system.
Businesses save time and avoid setup headaches because the VAR handles installation, configuration, and support.
Example: An IT hardware VAR may deliver servers, install them at a client’s office, configure the network, and provide long-term maintenance contracts.
SaaS VARs
SaaS resellers work with cloud-based tools like CRM systems, automation software, or chatbot platforms.
They add value by managing onboarding, training staff, and integrating the software with other systems. This ensures customers actually use the software effectively instead of abandoning it.
Example: A SaaS VAR resells a CRM solution, migrates client data, sets up automation workflows, and trains the sales team to use it.
Managed Service Providers (MSPs)
MSPs combine hardware, software, and ongoing IT support into bundled service contracts. Clients prefer this because they only need one provider for critical systems. The value is in reliability and convenience.
Example: An MSP manages cloud storage, cybersecurity tools, and helpdesk support under one monthly subscription for a client.
Marketing and Consulting VARs
Agencies and consultants often act as resellers too. They bundle software with strategy or advisory services. This appeals to clients who want both the tools and the guidance to use them effectively.
Example: A marketing agency resells a chatbot platform, then creates campaigns and analytics dashboards around it for their clients.
The types of value added resellers show how flexible the model is. Whether the product is hardware, software, or expertise, the principle remains the same: resell proven solutions and add value that makes them indispensable.
How to Become a Value Added Reseller
Knowing the benefits and types of value added resellers is useful, but the real question is how to get started.
The process requires more than signing up with a vendor. It means understanding the model, choosing the right niche, and setting up systems that allow you to deliver value consistently.
A structured approach helps avoid wasted effort and ensures that your business builds recurring income from the beginning. Here’s a step-by-step guide to entering and succeeding in a value added reseller program.
Step 1: Understand the Basics
Start with research. Learn what a value added reseller is, how it operates, and why businesses choose this model.
Study successful VARs in your industry to see how they bundle services with products. A clear understanding builds the foundation for long-term success.
Step 2: Pick Your Industry or Niche
A broad approach creates confusion. Focus on one niche such as IT hardware, SaaS, or marketing automation.
Pick where your skills or connections give you an edge. Specialization helps position you as an expert and makes client acquisition easier.
Step 3: Research Vendor Options
Not all vendor programs are equal. Compare commission structures, product quality, onboarding processes, and ongoing support. Strong vendors give training, resources, and fair payouts.
Weak programs limit your growth, regardless of effort. Choose vendors with proven credibility and solid partner ecosystems.
Step 4: Join a Value Added Reseller Program
Once you’ve chosen, apply to a value added reseller program. Most require basic business details, agreements, and onboarding sessions.
During onboarding, learn the tools, sales process, and support channels provided. The better you engage here, the smoother your client delivery will be.
Step 5: Build Your Sales and Support System
Success depends on systems, not improvisation. Set up a CRM to track clients, use automation to handle routine tasks, and strengthen customer service for faster response times.
Clients judge resellers not just by the product but by how well they are supported.
Step 6: Grow and Retain Clients
Acquiring clients is only half the job. Focus on upselling and cross-selling related services to increase revenue per client.
Retention matters more than new sales because recurring income compounds over time. Keep clients engaged through regular communication, updates, and added value.
Becoming a value added reseller is not complex, but it does demand structure and consistency. With the right niche, vendor, and support system, you can build a scalable business that generates recurring income.
Once these steps are in place, the next factor to examine is the quality of the program itself and what features make a reseller partnership truly strong.
Mistakes to Avoid as a New VAR
Joining a value added reseller program offers recurring revenue and growth, but success depends on more than just signing up.
Many first-time resellers fall into avoidable traps that weaken their business and reduce trust with clients. Recognizing these pitfalls early is essential for building long-term stability.
Ignoring Customer Needs
Selling without aligning to customer pain points is one of the biggest mistakes. When clients don’t see their problems solved, they leave quickly.
- Why it matters: A VAR succeeds only when it bridges the gap between what vendors offer and what customers expect. Ignoring needs turns the reseller into just another salesperson rather than a trusted partner.
Picking Weak Vendor Programs
Not all vendors provide strong support or fair commissions. Joining a weak program means more effort with fewer returns.
- Why it matters: Reliable vendors give resellers the tools, training, and incentives to grow. Weak programs limit profitability and make scaling difficult, no matter how good your sales strategy is.
Overlooking Client Support
The relationship doesn’t end once the product is delivered. Clients rely on guidance, troubleshooting, and updates to get full value from the solution.
- Why it matters: Without consistent support, clients lose trust and seek alternatives. Strong support keeps customers loyal and ensures recurring revenue.
Not Building Long-Term Relationships
Chasing quick sales creates short-term wins but weakens long-term income potential. Renewals and referrals only come from nurturing clients beyond the first transaction.
- Why it matters: VARs thrive on stability. Building strong relationships ensures steady revenue, deeper trust, and a stronger competitive position.
Avoiding these mistakes keeps a value added reseller aligned with customer needs, vendor strength, and long-term growth. With the foundation set, it’s useful to see how these principles work in real life by exploring examples of successful VARs across industries.
Value Added Reseller Program by BotPenguin
The real step forward comes when you join a program that makes the model profitable and easy to run. Not every vendor offers fair commissions, strong support, or tools that help you scale.
This is where BotPenguin’s value added reseller program stands out. It combines high earning potential with simplicity, making it accessible to consultants, agencies, and IT service providers who want to add automation and chatbots to their offerings without added complexity.
Why BotPenguin Stands Out
BotPenguin is built to remove friction. It offers an omnichannel AI Agent platform that works across WhatsApp, Facebook, websites, and more.
The platform requires no coding knowledge, which means resellers don’t need a technical team to deliver results for clients.
This user-friendly approach matters because customers value solutions that are quick to deploy and simple to manage. For a VAR, it means less time spent on troubleshooting and more time spent closing new deals.
Example: A digital marketing agency can resell BotPenguin’s chatbot, customize it for a client’s WhatsApp campaigns, and launch it within days without hiring developers.
Benefits of BotPenguin’s VAR Program
The program is designed to maximize value for resellers. Key benefits include:
- High recurring commissions: Each client you enroll adds ongoing income, not one-time payouts.
- Lifetime payouts: Earnings continue as long as your clients use BotPenguin.
- Unlimited clients: There are no caps, so growth depends only on how many customers you can onboard.
- Dedicated partner panel: Manage clients, track revenue, and access resources in one dashboard.
- Affordable pricing: Entry costs are low, making it easier for small agencies and consultants to start.
Together, these features give resellers the ability to grow revenue while keeping expenses predictable.
Example: An IT consultant can add chatbot services to their portfolio, enroll 30 clients, and generate steady recurring income without extra infrastructure.
How BotPenguin Helps You Scale
Scaling a reseller business is about handling more clients without increasing costs. BotPenguin supports this with automation, built-in integrations, and round-the-clock support.
Resellers don’t need to reinvent processes; everything is structured to help them grow.
- Automations reduce manual setup.
- Integrations connect AI Agents with CRMs and marketing platforms.
- Vendor support ensures smooth delivery for clients.
Example: A consulting firm using BotPenguin can serve multiple industries, from real estate to e-commerce, because the platform adapts easily. This flexibility allows them to scale across niches without extra training or staff.
The value added reseller program by BotPenguin combines strong financial incentives with practical tools to help resellers grow. It bridges the gap between opportunity and execution, offering a simple yet powerful path to recurring revenue.
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Conclusion
A value added reseller model creates value by aligning three interests: customers, vendors, and resellers. Customers gain complete solutions through bundled services and support.
Vendors extend their market without scaling their own teams. Resellers secure recurring income and build long-term stability.
The model is attractive because it reduces risk. You don’t need to create products from scratch. Instead, you work with proven tools and focus on adding services customers truly need. This lowers entry barriers and speeds up revenue generation.
A strong program is the deciding factor. Vendor support, fair commissions, and scalability determine whether a reseller succeeds or struggles. Platforms like BotPenguin address these points with automation, omnichannel solutions, and lifetime earning opportunities.
For businesses seeking predictable income and sustainable growth, becoming a value added reseller offers both. The model rewards consistency, customer focus, and the right partnerships, making it one of the most effective ways to build a resilient business today.
Frequently Asked Questions (FAQs)
What is a Value Added Reseller’s Role in Customer Education?
A value added reseller often delivers training, tutorials, and knowledge resources, helping customers fully understand the product and maximize its value in everyday business operations.
How do Value Added Resellers Handle Product Updates or Upgrades?
Value added resellers manage updates by installing changes, ensuring compatibility, and retraining staff. This minimizes disruption while keeping clients current with the latest product features and improvements.
What Value Added Reseller Benefits Exist for Vendors?
Vendors benefit from value added reseller benefits like expanded reach, reduced support responsibilities, and stronger customer trust, as VARs provide localized expertise and customized solutions alongside vendor products.
How to Become a Value Added Reseller in Niche Industries?
Understanding compliance, tailoring added services, and addressing sector-specific challenges are critical steps in how to become a value added reseller within industries like healthcare, education, or finance.
Does the Value Added Reseller Program by BotPenguin Include White-Labeling?
Yes, the value added reseller program by BotPenguin offers white-labeling, allowing partners to brand chatbots and automation tools as their own while BotPenguin powers the backend technology and support.
