Navigating the ever-evolving world of SaaS can be a challenge, especially for agency owners and resellers. Interestingly, recent trends indicate a shift back towards value in this sector, with Gartner predicting an industry growth of 20.7%.
This article is your guide to understanding these key developments and how they are driving the future of value-added SaaS resellers.
Ready? Let’s dive into seven game-changing trends you don’t want to miss out on!
Key Takeaways
- The value-added reseller (VAR) business model enhances existing products or services before reselling them to end-users, creating more comprehensive solutions than the original software provider.
- To become a VAR in the SaaS industry, one must understand the market, build relationships with SaaS vendors, develop integration skills, familiarize themselves with cloud computing and security solutions, and stay updated on SaaS trends and forecasts.
- Trends in value-added reselling include the explosion of front-office SaaS development and spending, making software cheaper and more intuitive for clients, and SMB CEOs prioritizing growth over point solutions.
- Opportunities for VARs include offering front-office growth services to improve sales and customer service functions of businesses, capitalizing on direct vendor-to-customer relationships for personalized support and understanding customer needs better, and embracing a solutions-based approach to sales and marketing tailored to specific challenges faced by customers. Leveraging cloud computing capabilities is also advantageous.
The Value-Added Reseller Business Model
A value-added reseller is a company that enhances or adds value to an existing product or service before reselling it to end-users.
What is a value-added reseller?
A Value-Added Reseller (VAR) is a business that enhances the original product’s value by adding unique features or services before reselling it to end customers. By integrating their specialized skills or knowledge, VARs often create a more comprehensive solution for users than what an original software provider might offer.
For instance, they may bundle various SaaS products together, provide custom configurations and tech support, or develop tailored training programs to help clients maximize their software investment.
This ability to add significant value beyond what’s available off-the-shelf has made VARs an integral part of today’s booming SaaS landscape.
How to become a value-added reseller
Establishing yourself as a value-added reseller in the SaaS industry can be a highly lucrative move, leading to exponential growth and significant profit margins. Here are the steps you can take:
- Start by understanding your market: Analyze the requirements of businesses in your target niche. Take note of which front-office SaaS solutions are gaining traction.
- Identify potential SaaS vendors: Look for white-label SaaS providers that fit within your chosen niche and offer products that align with the needs of your market.
- Build relationships with SaaS vendors: It’s not always enough to simply identify potential partners, you need to build strong, mutually beneficial relationships.
- Develop skills for software integration: As a value-added reseller, you’ll need the ability to integrate various software components into an existing business infrastructure.
- Familiarize yourself with cloud computing and hosting: With SaaS on the rise due to reduced cost and time-to-market advantages, knowledge about cloud computing is imperative.
- Understand security solutions: A heightened focus on security solutions is one of the key trends in the VAR industry. Make sure you’re well-versed in this area.
- Create a comprehensive sales and marketing strategy: Develop a clear plan outlining how you intend to sell your added-value services, ensuring it ties back into current trends such as direct vendor-to-customer relationships and pricing transparency competition.
- Understand fintech and its future: Knowledge of technologies shaping fintech’s future, like artificial intelligence, will add immense value when looking at growth prospects.
- Stay updated on SaaS trends forecasts: Consumers’ demands from their service providers change constantly; staying updated is crucial for success as per Gartner’s report indicating a 20.7% growth forecast in 2023 for SaaS industries.
- Always try to define your offerings clearly: Be clear about what distinguishes your services from those offered by competitors or even vendors themselves as part of the top 12 trends for 2023 in the Value-Added Reselling Business Model.
Trends in Value-Added Reselling
Front-office SaaS development and spending are exploding, with businesses realizing the value of implementing these solutions to improve their operations.
Front-office SaaS development and spending is exploding
The surge in front-office SaaS (Software as a Service) development and spending is shaping the landscape of value-added reselling. With digital transformation at the forefront, many organizations are prioritizing investments in customer-facing applications to streamline business processes and enhance user experiences.
This explosion signifies an excellent opportunity for agencies and resellers. As more businesses turn to these solutions, they’ll need trusted partners who can provide added value features such as customization, integration, training, or support services tailored to their unique needs.
Now is a prime time for Value-Added Resellers (VARs) to capitalize on this trend and deliver valuable services that extend beyond traditional software sales models.
Software is getting cheaper and more intuitive
Software is becoming more accessible than ever before, with lower costs and user-friendly interfaces. This trend is great news for value-added resellers like you, as it means that your clients can afford the tools they need to grow their businesses without breaking the bank.
Plus, intuitive software makes it easier for your clients to adopt and use these tools effectively, increasing their overall satisfaction and success. As a value-added reseller in today’s market, you have an opportunity to provide affordable and user-friendly solutions that truly bring value to your clients.
SMB CEOs prioritize growth over point solutions
SMB CEOs are shifting their focus from point solutions to prioritizing growth in their businesses. They understand the importance of investing in strategies and technologies that can drive overall business growth, rather than just addressing specific pain points.
This shift is reflected in the increasing demand for value-added resellers who can provide comprehensive solutions that help SMBs achieve their growth objectives. By partnering with a value-added reseller, SMBs can access a wide range of services and expertise that contribute to their long-term success.
It’s all about looking at the bigger picture and finding ways to maximize growth opportunities rather than simply fixing immediate issues.
Opportunities for Value-Added Resellers
– Value-added resellers have numerous opportunities to thrive in the SaaS industry, including offering front-office growth services and capitalizing on direct vendor-to-customer relationships.
– They can also embrace a solutions-based approach to sales and marketing, leveraging the availability of cloud computing and hosting.
Offering front-office growth services
Value-added resellers have a unique opportunity to offer front-office growth services to their clients. With the explosion of front-office SaaS development and spending, companies are looking for ways to optimize their customer-facing operations and drive growth.
As a value-added reseller, you can provide tailored solutions that help businesses improve their sales, marketing, and customer service functions. By partnering with top-notch software vendors and leveraging your expertise, you can assist your clients in implementing cutting-edge tools that streamline processes, enhance customer experiences, and boost revenue.
This not only adds value to your services but also positions you as a trusted advisor in helping businesses achieve their growth objectives.
Capitalizing on direct vendor-to-customer relationships
One of the key opportunities for value-added resellers in the SaaS industry is to capitalize on direct vendor-to-customer relationships. By establishing strong partnerships with SaaS vendors, resellers can offer their clients unique access to cutting-edge software solutions and personalized support.
This direct relationship allows resellers to understand their customers’ specific needs and provide tailored recommendations that drive business growth. Additionally, working closely with vendors enables resellers to stay ahead of industry trends and quickly adapt their offerings to meet evolving customer demands.
Overall, leveraging direct vendor-to-customer relationships is a powerful strategy for value-added resellers looking to provide added value and maintain a competitive edge in the SaaS market.
Embracing a solutions-based approach to sales and marketing
To thrive in the value-added reselling industry, agency owners and resellers must embrace a solutions-based approach to sales and marketing. This means shifting away from simply selling products or services and instead focusing on understanding the unique challenges and needs of their customers.
By taking a consultative approach, resellers can provide tailored solutions that truly add value to their client’s businesses. This not only strengthens customer relationships but also sets resellers apart from competitors who are still focused solely on product features.
With the availability of cloud computing and hosting, resellers have more opportunities than ever to offer comprehensive solutions that integrate different technologies to meet specific business objectives.
Leveraging the availability of cloud computing and hosting
Value-added resellers can greatly benefit from leveraging the availability of cloud computing and hosting. With the advancements in technology, businesses no longer need to rely on expensive infrastructure or hardware to run their software.
The cloud provides a cost-effective and scalable solution that allows businesses to easily access and manage their applications and data. By offering cloud-based solutions, resellers can provide their customers with increased flexibility, scalability, and reliability.
In addition, resellers can take advantage of the various cloud services available in the market, such as storage, networking, and security solutions, to offer comprehensive packages tailored to their customers’ needs.
Trends in the VAR Industry
The VAR industry is experiencing a shift towards direct vendor-to-customer relationships, with resellers establishing closer connections with software providers.
Direct vendor-to-customer relationships
Direct vendor-to-customer relationships are a key trend in the value-added reseller (VAR) industry. With the rise of SaaS solutions, more and more vendors are cutting out the middleman and selling directly to customers.
This allows for greater transparency, improved communication, and faster response times between vendors and their customers. As an agency owner or reseller, it’s important to embrace this trend by finding ways to add value beyond simply being a distributor.
Building strong relationships with your vendors can lead to exclusive access to new products, better pricing options, and opportunities for collaboration on customized solutions that meet your client’s specific needs.
Pricing transparency driving competition
Pricing transparency is a trend in the value-added reseller (VAR) industry that is driving fierce competition among vendors. With the availability of information online, customers now have easy access to compare pricing and offerings from different resellers.
This has led to increased pressure for VARs to offer competitive prices and added value to attract customers.
In today’s market, customers are no longer willing to pay a premium for products or services without understanding what they are getting in return. They expect transparency in pricing, allowing them to make informed decisions based on their needs and budget.
As a result, VARs must communicate their pricing structures and highlight the unique value they bring to the table.
To stand out from competitors, VARs need to go beyond just offering lower prices. They should focus on showcasing their expertise, personalized customer support, and additional services that differentiate them from others.
By emphasizing these aspects along with transparent pricing, VARs can effectively position themselves as trusted partners who provide exceptional value-added solutions.
Availability of cloud computing and hosting
Cloud computing and hosting have become increasingly accessible and affordable, making them a valuable asset for value-added resellers. With the availability of cloud computing and hosting services, resellers can easily scale their operations without the need for expensive infrastructure or hardware investments.
This allows them to offer cost-effective solutions to their clients while also providing flexibility in terms of storage, processing power, and data accessibility. Additionally, cloud computing enables resellers to quickly deploy new applications and updates, reducing time-to-market and increasing efficiency.
By leveraging the benefits of cloud computing and hosting, resellers can enhance their offerings and provide added value to their customers in a streamlined and efficient manner.
Increased focus on security solutions
As the value-added reseller industry continues to evolve, there is an increased focus on security solutions. With cyber threats becoming more prevalent and sophisticated, businesses are prioritizing the protection of their data and systems.
This presents a significant opportunity for value-added resellers to offer comprehensive security solutions that address these growing concerns. By partnering with reputable cybersecurity vendors, resellers can provide their customers with cutting-edge technologies and expertise to safeguard against potential breaches and attacks.
This trend not only adds value to the services offered by resellers but also helps businesses gain peace of mind knowing that their sensitive information is secure. As the SaaS industry grows and evolves, staying ahead of the latest security trends will be crucial for value-added resellers to meet the increasing demands of their clients.
Growing need for infrastructure ecosystems and integrations
As the SaaS industry continues to evolve, there is a growing need for infrastructure ecosystems and integrations. This trend reflects the increasing complexity of businesses’ technology needs and the desire for seamless connectivity between different software solutions.
Companies are no longer satisfied with standalone applications; they want all their systems to work together seamlessly, providing a holistic view of their operations. This creates opportunities for value-added resellers who can offer integration services and help businesses build comprehensive infrastructure ecosystems that drive efficiency and productivity.
With the availability of cloud computing and hosting, it has become easier than ever to integrate various software solutions, providing a competitive edge for companies. Embracing this trend allows resellers to position themselves as strategic partners who can streamline business processes and drive innovation through integrated solutions.
Solutions-based approach to sales and marketing
A solutions-based approach to sales and marketing is a key trend in the value-added reseller (VAR) industry. Instead of simply selling products, successful VARs are focusing on understanding their customer’s needs and providing comprehensive solutions to meet those needs.
This approach involves identifying pain points, offering customized solutions, and delivering ongoing support and value.
By taking a solutions-based approach, VARs can differentiate themselves from competitors by offering more than just software or services. They become trusted advisors who understand their customers’ businesses and help them achieve their goals.
This approach also allows VARs to build long-term relationships with their customers, leading to increased customer loyalty and repeat business. Additionally, it enables VARs to expand their offerings beyond traditional software reselling into areas like consulting, implementation services, and ongoing support.
This trend aligns well with the growing emphasis on front-office growth services by SMB CEOs who prioritize growth over point solutions. By adopting a solutions-based approach to sales and marketing, VARs can position themselves as strategic partners for these CEOs by helping them drive revenue growth through technology enablement.
With the availability of cloud computing and hosting platforms enabling faster deployments at lower costs, VARs can deliver scalable solutions that provide immediate value for businesses of all sizes.
Conclusion
In conclusion, the value-added reseller business model is being revitalized by several key trends in the SaaS industry. With the explosion of front-office SaaS development and spending, software becoming more affordable and intuitive, and SMBs prioritizing growth over point solutions, there are ample opportunities for resellers to add value.
By offering front-office growth services, building direct vendor-to-customer relationships, embracing a solutions-based approach to sales and marketing, and leveraging cloud computing and hosting capabilities, resellers can thrive in this evolving market.
It’s an exciting time for value-added SaaS resellers as they play a crucial role in helping businesses maximize their investment in technology.
FAQs
1. What are some trends that are putting the ‘value’ back in value-added SaaS resellers?
Some trends that are putting the ‘value’ back in value-added SaaS resellers include personalized customer experiences, strategic partnerships with software vendors, offering specialized expertise and services, and providing ongoing support and training.
2. How can personalized customer experiences benefit value-added SaaS resellers?
Personalized customer experiences can benefit value-added SaaS resellers by increasing customer satisfaction and loyalty, improving retention rates, attracting new customers through positive referrals, and differentiating themselves from competitors.
3. Why is forming strategic partnerships with software vendors important for value-added SaaS resellers?
Forming strategic partnerships with software vendors allows value-added SaaS resellers to offer a wider range of solutions to their customers, access exclusive resources and support from the vendor, gain competitive advantages in the market, and strengthen their overall value proposition.
4. What ongoing support and training should value-added SaaS resellers provide?
Value-added SaaS resellers should provide ongoing technical support to assist customers with any issues or questions they may have about the software. They should also offer regular training sessions or resources to help users maximize their utilization of the software’s features and functionality.