A Managed Service Provider (MSP) offers invaluable services to a wide range of businesses across various industries, including healthcare, education, corporate offices, and small enterprises.
MSPs provide clients with a comprehensive suite of IT services, encompassing hardware, servers, security, compliance protocols, and technical support, ensuring seamless and uninterrupted operations.
As an MSP reaches a certain level of operational maturity, a natural question arises: how to expand and evolve beyond being a well-established MSP? One of the key strategies for growth is venturing into value-added reselling, known as VAR.
In this article, we will delve into the concept of value-added reselling and explore how it can be a lucrative source of revenue for established MSPs.
Understanding value-added reselling (VAR)
A value-added reseller (VAR) specializes in selling software and hardware that can benefit clients beyond the core MSP services. VAR activities go beyond the initial scope of the MSP-client agreement, often involving products or services from third-party providers. The essence of VAR is enhancing the offerings with unique benefits that may not be accessible when purchasing directly from a third party.
In the past, VARs might have sold additional office supplies to their clients, such as copy machines, on behalf of companies like Xerox. They also provided troubleshooting services as an added advantage to their customers.
In today’s context, VARs may focus on software sales. For instance, a healthcare provider recovering from a cybersecurity attack may require cutting-edge security software but lacks the expertise to procure and implement it. In this scenario, the MSP can offer the security software as a value-added service on behalf of a dedicated cybersecurity provider. The MSP manages the cybersecurity software implementation, updates, troubleshooting, and monitoring, seamlessly integrating it into their service package.
Becoming a value-added reseller
The good news is that third-party companies often seek partnerships with VARs as it helps expand their product reach in the market. Many manufacturers depend on VARs as vital distribution channels.
Typically, product vendors offer partner programs to individuals interested in value-added reselling. These programs define the prerequisites for becoming a partner and remaining in good standing. Requirements frequently include meeting revenue targets, participating in training programs, and serving a minimum number of customers.
Some MSPs transitioning into the VAR role may consider collaborating with distribution partners to source the right products and services and access necessary supplies.
A sensible starting point is leveraging existing vendor relationships. MSPs already maintain connections with various vendors, making it worthwhile to inquire about established reseller programs. Commencing with a product or service familiar to the MSP streamlines implementation and is a robust proof of concept for integrating VAR services into their existing offerings.
The benefits of embracing the value-added reselling services
Successful MSPs depend on a consistent flow of recurring revenue to sustain profitability. Predictable revenue facilitates budgeting, revenue projection, staffing expansion, customer acquisition, technology investment, and infrastructure maintenance.
MSPs seeking growth and scalability find value-added reselling appealing due to their existing client base. Top-tier MSPs are considered trusted advisors by their clients, who are likely to heed recommendations made by the MSP. This significantly increases the probability of clients being receptive to products or services offered by the MSP as a VAR.
Incorporating VAR services doesn’t necessarily require a steep learning curve for MSPs, as they already provide consulting and implementation services to their clients.
Benefits for clients engaging with value-added reselling
Clients engaging with VARs gain several advantages:
- Enhanced assistance in implementing or troubleshooting products and services.
- Additional perks may not be available when purchasing directly from vendors.
- Expertise tailored to the client’s specific industry.
- Streamlined management of multiple technologies through a single vendor, the MSP.
- The enduring benefit of working with a trusted advisor who understands the client’s business and goals.
Becoming a VAR with airSlate
Market research and trend analysis are essential for those considering entry into the VAR arena to identify areas where companies benefit most.
Presently, automation is a key focus for numerous organizations. No-code and low-code tools are reshaping businesses’ agility, efficiency, and productivity. A McKinsey Global Survey indicates that almost 70 percent of organizations pilot automation technologies.
airSlate offers a document workflow automation platform that empowers users to create robust documents and automate workflows within a single platform. From PDF editing to custom form creation and eSigning capabilities, airSlate is revolutionizing how organizations streamline their processes.
While many organizations recognize the need for automation, they often need more resources to implement it effectively. This is where VARs can make a significant impact.
VARs have the opportunity to become automation experts and assist clients in transforming their business operations. Automation is a lasting technological trend that will continue to shape our work.
VARs selling automation services through airSlate can anticipate substantial additional revenue.
The airSlate partner program simplifies introducing automation services to existing clients. A dedicated partner account manager and solution architect guide VARs through a sales enablement process, building confidence in selling airSlate. airSlate also supports partners through market development funds for those who complete a selection program. And this MSP playbook will provide guidance for getting it done.
