A Value-Added Reseller (VAR) is a company or individual that adds extra value to products or services they sell by customizing, enhancing, or bundling them with other solutions. VARs act as intermediaries between the original product/service providers and end customers, offering a tailored package that meets specific requirements.
The key characteristics of a value-added reseller include:
Customization: VARs often modify or customize products or services to better suit the needs of their target customers. This can involve integrating additional features, providing personalized support, or tailoring the solution to address specific use cases.
Expertise: VARs possess in-depth knowledge of the products they resell and often have expertise in the industries or sectors where the solutions are applied. They can offer guidance, consulting, and training to customers to ensure the effective implementation and use of the products.
Bundling and Integration: VARs may bundle multiple products or services together to create a comprehensive solution. They can integrate different technologies or solutions to provide a seamless experience for customers.
Support and Service: Value-added resellers usually provide ongoing support and maintenance services to their customers. This ensures that the products remain functional and up-to-date, and any issues that arise can be promptly addressed.
Market Presence: VARs typically have a strong presence in their target markets. They understand their customers' needs and can effectively market and promote the products they resell.
Relationship Management: VARs establish and maintain relationships with both the product/service providers and the end customers. They act as liaisons, ensuring smooth communication and cooperation between all parties involved.
Distribution: VARs handle the distribution of the products they resell, making them more accessible to potential buyers.
Value-added reselling is common in various industries, including technology, software, hardware, and telecommunications. VARs play a crucial role in bridging the gap between manufacturers and customers by providing added value, expertise, and localized support, which enhances the overall customer experience.
Why Become a Value-Added Reseller?
Becoming a Value-Added Reseller (VAR) can offer several benefits and opportunities for individuals or businesses looking to enter the market and establish themselves as valuable intermediaries.
Here are some compelling reasons to consider becoming a value-added reseller:
Diversified Revenue Streams
As a VAR, you have the flexibility to work with multiple product or service providers. This diversification allows you to offer a wide range of solutions to your customers, reducing reliance on a single product or market.
Customization and Personalization
VARs can tailor products or services to meet the specific needs of their target customers. This customization allows you to add value by addressing unique challenges and requirements, making your offerings more attractive to potential buyers.
Expertise and Niche Focus
By specializing in specific industries or technologies, VARs can develop deep expertise and become trusted advisors to their customers. This niche focus helps you stand out in the market and attract customers looking for specialized solutions.
Strong Partner Network
As a VAR, you build relationships with product/service providers, enabling access to valuable resources, training, and support. These partnerships can lead to co-marketing opportunities, joint ventures, and other collaborations that enhance your business's credibility.
Higher Profit Margins
Value-added reselling allows you to charge a premium for the additional services and customizations you provide. This can result in higher profit margins compared to simply reselling products without any added value.
Customer Loyalty and Long-Term Relationships
By offering personalized solutions and exceptional support, you can foster strong relationships with your customers. Satisfied clients are more likely to become repeat customers, leading to long-term business partnerships.
As technology and industries evolve, new products and services continually emerge. VARs can capitalize on these opportunities by identifying emerging trends and offering innovative solutions to meet changing customer needs.
Control Over Business Strategy
As a VAR, you have more control over your business strategy and can choose which products and services to offer based on your market research and customer demands.
Stronger Market Presence
Partnering with reputable product/service providers enhances your credibility and market presence. This association can attract more customers who trust the quality of the products you resell.
Access to Training and Support
Many product/service providers offer training and support to their VARs, which can help you and your team stay updated on the latest developments and advancements in the industry.
However, becoming a VAR also comes with certain challenges, such as competition, managing relationships with multiple providers, and staying up-to-date with industry trends. To succeed as a value-added reseller, it's essential to thoroughly research your target market, build strong partnerships, and continuously deliver value to your customers.
Value-Added Reseller Opportunities in eLearning
The eLearning market has been rapidly growing, and there are several value-added reseller opportunities for businesses and entrepreneurs to explore.
Here are some potential areas where you can find opportunities as a value-added reseller in the eLearning industry:
Content Development and Licensing
Many eLearning companies and institutions are in constant need of high-quality educational content. As a value-added reseller, you can partner with content creators, instructional designers, or subject matter experts to develop and license eLearning courses. By offering a diverse range of courses, you can cater to different industries and educational levels.
Learning Management Systems (LMS)
Reselling LMS software can be a lucrative opportunity. Many organizations, including businesses, schools, and non-profits, need efficient platforms to deliver and manage their eLearning content. By offering an LMS solution, you can help clients organize and track their training programs effectively.
Customization and Integration Services
Many eLearning solutions may require customization to fit the specific needs of individual clients. As a reseller, you can offer customization and integration services for LMS platforms, learning content, or other eLearning tools to help organizations tailor their eLearning experiences.
Mobile Learning Solutions
With the increasing use of mobile devices, there is a growing demand for mobile-friendly eLearning content and apps. Reselling mobile learning solutions, such as responsive eLearning templates or mobile learning apps, can be a promising venture.
Virtual Reality (VR) and Augmented Reality (AR) Learning
Immersive technologies like VR and AR have been gaining traction in the eLearning industry. Reselling VR/AR learning solutions or partnering with VR/AR developers can offer unique and engaging learning experiences to clients.
Gamification in eLearning
Gamification has proven to be an effective way to enhance learner engagement and motivation. As a value-added reseller, you can offer gamification tools and services to eLearning providers to incorporate game elements into their courses.
Analytics and Reporting
Data-driven decision-making is crucial for the success of eLearning programs. Offering analytics and reporting tools that track learners' progress, performance, and engagement can be valuable for organizations seeking to optimize their training efforts.
Localization and Translation Services
For eLearning providers looking to expand their reach to international markets, localization and translation services are essential. You can offer multilingual support to help eLearning content and platforms reach a broader audience.
Content Hosting and Cloud Solutions
Hosting eLearning content on the cloud offers scalability and accessibility advantages. As a value-added reseller, you can partner with cloud service providers to offer secure and reliable hosting solutions.
Certification and Compliance Solutions
Many industries require specific certifications and compliance training. Reselling certification programs and compliance training content tailored to different sectors can be a profitable niche.
Please note that the eLearning industry is dynamic and continuously evolving. To succeed as a value-added reseller, stay updated with the latest trends and technologies in eLearning, understand the needs of your target audience, and build strong partnerships with reliable eLearning providers and developers.
About LMS Portals
At LMS Portals, we provide our clients and partners with a SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.
The system includes built-in, SCORM-compliant course authoring software that enables most anyone to build engaging courses quickly and easily.
We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.
If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.
Together, these features make the LMS Portals platform the ideal solution for our clients and value-added reseller partners.