A value added business partner,
a.k.a.VAR or business partner, is an independent business that sells, implements and supports other vendors’ software applications including HRIS and HRMS applications. The software vendor directly pays the VAR, BP or Business Partner a percentage of each deal they sell. The benefit to the software vendor of having VAR’s or having a channel, as it is sometimes referred to, is the software vendors add numerous organizations that will sell and support their application and they pay the VAR nothing unless they close business. Actually, the VARs often pay the software vendors to participate in the service. An additional benefit to the vendor is if they have a large enough channel they gain a localized support base nationally, or internationally, for their application. Given the benefits, I am certain just about every HR software company wants to do a better job creating a channel.
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A number of HR software vendors have asked me questions about setting up a partnership channel so I thought I would take this opportunity to offer my two cents on the subject. Allow me to be very frank, I have never setup an HRIS channel. I am only offering advice based on what I have seen while working for others, what I have noticed in the industry over the past fifteen years, and what I believe it would take to entice current value added resellers to offer your products.
Let me provide a warning. I have seen many HR software, HRIS, and HR