CRM Software Value Added Resellers

CRM value added resellers (VARs) resell commercial CRM software systems, and normally provide related professional services such as implementation, system integration, software customization and customer support.

On occasion, VARs are sometimes also Independent Software Vendors (ISVs) who adapt the third party commercial CRM system with their own proprietary application software in order to advance and extend both systems for a particular target market. On other occasions, VARs may simply use software customization tools to modify the third party commercial CRM system for unique industry requirements or vertical market positioning.

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VARs were the most popular go-to-market channel for CRM software publishers serving the small and midsize business (SMB) market. However, the majority of the most well known cloud or SaaS CRM companies such as Oracle on Demand, RightNow, Salesforce.com and Zoho CRM have used VARs much more sparingly and instead opted to sell the bulk of their CRM software directly.

VARs derives their revenues by marking up the commercial application software, normally between 30% and 55%, as well as providing professional services, most often on a time and materials basis. VARs provide on site, normally local, services which aid companies in deploying Customer Relationship Management software systems. However, VARs should not be viewed as independent as they have strong vested interests in only the CRM software products which they can resell.

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