What is white label software and why are a rising number of start-ups switching to this model?
It’s an exercise that has proven fruitful. At the end of the day, white label items sell.
Supermarkets offer store-brand adaptations of everything from oats to pasta sauce cheaper than the well-known brands. Gadget retailers sell clients the same mass-produced goods under different brand names. And banks are even at it. For example, outsourcing check clearing to white label outfits.
In all cases, however, the fundamental idea doesn’t change. You take an item or service that has been created by one organisation, and market it under another organisation’s trading name. From the outside, it seems like companies have created their own proprietary product. But when in reality they are offering a product or service without contributing any of their own resources to its development. They have simply purchased an off-the-shelf product themselves.
It is also a way of providing manufacturers and engineers another way of selling their product.
Software-as-a-service (SaaS) can even be offered as white label solution.
White label programming enables clients to utilise, or even resell, programming solutions under their own brands, building up their own client base while modifying the look, feel, and functionality of the product.
This model has turned out to be a fundamental part of several industries such as client administration, statistical surveying and whiteevent ticketing to name just a few.
Usually the white label supplier centres around delivering the product while the reseller is focused on client sales.
We’ve seen numerous organisations based on this model. By understanding local markets and employing a sales team that understands that specific market, you can create a successful business.
For example, if we use the event ticketing scenario, a white label online ticketing platform could be purchased to host local events. The purchaser would pay a one-off fee for a license to use the platform and generate revenue by charging promoters to sell tickets through their website.
Once the initial investment has been recovered, collecting booking fees becomes a lucrative business opportunity.
Resellers don’t have to worry about the maintenance or development of the system so it allows them to focus all of their efforts on sales and marketing.
1. The item does what you need it to do, right out of the box
2. The package is intuitive and requires minimal training to use. Keep in mind it should be a service that your clients can use easily
3. The company selling the software is reputable and has a positive track record
4. The provider offers support and setup to help you get your new business off the ground
5. You can totally rebrand the package with your own branding leaving no hint of the organisation who really created it
1. No need for a physical store
2. Skip R&D and begin selling quickly
3. Stay competitive when up against industry-leading businesses without having the huge budget they do
4. The quickest way to start generating an income
5. Offer ongoing revenue generating services for a one-time investment
6. Limit overheads and staffing costs
7. Speed up development and growth
When you utilise white label solutions, it allows you to concentrate on your development, so you can jump further into the guiding principle of your business (i.e finding new customers, scaling, refining your brand image and so forth.)
Ensure you conduct due diligence on any package you consider investing in. Check respectable sources and figure out whether your white label supplier is dependable.
Choosing a bad supplier will obviously lead to disappointment. But as long as you do your research, the possibility to create a thriving business is there. You simply need to spend time looking into the options that are available to you.
The purpose of utilising white label solutions is to minimise hassle for yourself, and a decent white label supplier will do that for you. As I’ve already said, you focus on generating sales, the supplier handles the rest. Your customers will welcome this attitude too.
Furthermore, white labelling will end up being less expensive than doing everything in-house.
Leaving the heavy lifting of R&D to the specialists means you can concentrate on your business. This will always be the most ideal approach to scale a business and will lead to better quality leads that you can chase and focus on developing a positive relationship with.
Everything comes down to this:
“Have a crystal clear business plan, understand your client base and after that pick a supplier that best meets your requirements.”
They themselves should provide things like website audits and customised proposals, while the platform they offer should include custom branding, a lead magnate and online marketing at the very least.
Blog posts for websites, advertisements, digital books, email newsletters and so on. All created namelessly and marketed to clients under a business’ name.
Rebranded digital marketing services like SEO, PPC advertising campaigns and social media promotion.
Rebrandable platforms that the reseller sells under their own trading name, to customers at a marked up price.
An item that is fabricated by one manufacture and sold by another under a different brand.
Re-sellable, simple to use drag-and-drop site creation or bespoke web design services that are sold to the end client by an entity that is different from that which is actually doing the work.
All in all there are an almost endless list of white label business opportunities out there. In this article we only covered a few.
While label software is the fastest way to break into the world of online business and start making money. All it takes is a little research and an upfront investment.
If you have any questions about white label software drop them in the comments below and I’ll get back to you ASAP.
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