Introduction

Any business development expert will tell you there is no one-size-fits-all answer for finding the best way to get any one service or product to market and electing the right sales and marketing approach requires careful consideration of a number of unique variables. However, for Software-as-a-Service (SaaS) providers, one growing trend is becoming increasingly difficult to ignore: the Value-Added Reseller (VAR) approach. Under the right circumstances, the mutually beneficial relationship between SaaS providers and VARs is clear: VARs can offer longstanding, stable, and targeted market access that most new SaaS providers lack, while new and innovative SaaS products can enrich and enhance VARs’ portfolio and competitive advantage. 

Indeed, the world of SaaS seems to be, in many ways, uniquely suited to extract value from a VAR relationship. Management consultant Phil Morretini says that while the “VAR factor” has been a major player in the B2C software space for some time now, there is every reason for SaaS focused on the B2B market to consider the VAR channel.

Benefits of Value-Added Resellers (VARs) for Small SaaS Providers

One of the primary benefits of a VAR partnership is the VAR’s ability to help small SaaS providers monetize their product in otherwise unprofitable markets by providing a more complex and targeted service delivery model. SaaS providers get to envision new horizons with the help of a VAR partner who can open doors into new geographies and segments.

Other key benefits include accelerated feedback, product development, and growth. Turning targets into leads and getting those leads to a purchase decision as fast as possible isn’t just important from a revenue point of view; it also has serious implications for positive word-of-mouth and online client reviews, which both reign supreme as the most trusted outsider information that can exist for their brand. Thus, growing a user base of satisfied clients is just about the most important thing for a new SaaS provider. VARs can help new SaaS providers get there, and faster, by offering stable and targeted market access to new clients.

Conclusion

As new SaaS providers navigate the road to profitability and growth, a partnership with a Value-Added Reseller can be one of the smartest and fastest ways to meeting their goals. Mutual benefits to both small SaaS providers and VARs themselves seem to indicate that this partnership approach will continue to grow in popularity and importance. If you are a SaaS provider with questions about how a VAR partnership might benefit you and your business, contact the HFX team today.