A value-added reseller (VAR) agreement is a contract between a manufacturer or distributor and a reseller that outlines the terms of the relationship between the two parties. VAR agreements are common in the technology industry, where VARs provide additional services and support to customers who purchase the manufacturer`s products.

The primary purpose of a VAR agreement is to establish a relationship between the manufacturer or distributor and the VAR. The agreement typically outlines the responsibilities of each party, including the scope of the VAR`s services, pricing, and warranties. In many cases, the agreement will also include provisions for marketing and sales support, product training, and technical support.

One of the key benefits of a VAR agreement is that it allows manufacturers to expand their reach and increase their sales without having to maintain a large sales force. This is particularly useful for smaller manufacturers who may not have the resources to establish a large network of sales representatives. By partnering with VARs, manufacturers can leverage the VARs` existing customer base and expertise to reach new customers and increase sales.

For VARs, the primary benefit of a VAR agreement is access to high-quality products and services that they can offer to their customers. VARs can also benefit from the marketing and sales support provided by the manufacturer, which can help them to increase their own sales and profitability.

In order to be successful as a VAR, it is important to choose the right products and services to resell. VARs should look for products that are in high demand and that offer unique value to customers. They should also look for manufacturers that offer strong support and training programs, as this can help them to provide better service to their customers and differentiate themselves from competitors.

Overall, a VAR agreement can be an excellent way for manufacturers and VARs to work together to increase sales and provide better service to customers. By establishing a clear and mutually beneficial relationship, both parties can benefit from the increased sales and improved customer relationships that come with a successful VAR partnership.