What are value-added distributors?
Value-added distributors (or VADs) are distributors who go beyond the traditional role of logistics and order fulfillment to provide additional services that enhance your company’s products or solutions. The extra services offered by VADs can often lead to higher market penetration and improved customer satisfaction.
Take this scenario as an example: suppose you’re a tech company that’s developed a new SaaS product. A VAD in this space would distribute your product, but they would also provide training and technical support for new customers, conduct sales demonstrations, and even bundle your software with complementary products to create a more complete solution.
Some key benefits of partnering with VAD include:
- They can enhance your product offering by bundling your product with complementary ones or offering additional services like installation and training
- VADs often have an extensive network of resellers and integrators that can help your product reach a larger audience
- As they take over many of the functions typically handled by your team, like training and support, they can help you focus on your core competencies
The right VAD partner can become an extension of your company, providing value-added services that can help your product stand out in the market and rapidly increase your sales.