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There are a variety of channel partners in the online software industry, and some common types include:

Referral Partner

A referral partner is like an affiliate program, in that the partner referrers its audience to buy the vendor’s product. Referring partners generally earn commissions upon reaching a certain number or conversions (CPA) or impressions (CPM).

Authorised or Value-Added Reseller (VAR)

In the software industry, a VAR acquires the vendor’s solution at a discount and resells the product to their customers for a profit. The VAR will often include the program on a piece of hardware that they also sell to the consumer.


Managed service provider (MSP)

An MSP typically has a more advanced understanding of the vendor’s product than a referral partner or a VAR. Instead of building a special department in-house, many corporations rely on MSPs to figure out the company’s IT needs. This puts MSPs in a very special position vis-à-vis the vendor and buyer: They represent the vendor’s product and act as a dedicated consultant/maintenance team to the buyer.

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