What is white label software?
A white-label software is a generic software without any branding that’s developed and sold to companies as a service. Businesses can purchase access to the software, add their branding to it and resell it as their own as though it was developed by themselves. There are many reasons why this can be a better alternative to custom software that is developed from the ground up. White label software is usually sold under a software as a service or SaaS model, making it very attractive to businesses who cannot fork up the entire cost of the license upfront.
What is white labeling SaaS?
“White label” means that you can brand the SaaS product as if it were your own.
It’s the process of buying a re-brandable product/service, and then re-selling it under your own brand name to the end customer. It’s a great way to offer more services to clients without adding additional work for your team! White-labeling gives providers access to a large distribution network through their reseller partners, and resellers can expand their product and service line easily. The key to Whitelabel is anonymity, as consumers who buy the end product are not aware that it was originally produced by a white-label provider.
What is white labeling services?
White label products and services are purchased by the latter company without branding. That way, the reseller can customize the product with their own brand, logo and identity, allowing customers to associate the product with the reseller. Meanwhile, the manufacturer can focus on finding cost-effective ways to make the product, without concern for the product’s marketing.
White label solutions work well for everything from cereal to tickets. Grocery stores sell cereal and other products with their own brand name at a discount to other brands. Similarly, ticket resellers can manage their ticket inventory more efficiently through a white label solution. This also increases distribution so that fans have more choice in where they can purchase tickets.
What is the difference between private label and white label?
The difference is who specifies what the product or service will contain. In a private label relationship, the buyer specifies the design, parts, ingredients, or offerings. In a white label relationship, while the provider or manufacturer may offer a range of customizations to fit specific needs, they specify the design, parts, ingredients, or offerings. Sound confusing, it’s not. Just keep reading it will become clear shortly.
The concept has more clarity when it comes to products and loses some distinction when looked at with services, which is most likely why the misnomer came to be that the term white label is related only to services.
A private label product is manufactured by a contract or third-party manufacturer and sold under your brand name. As the buyer, you specify everything about the product — what goes in it, how it’s packaged, what the label looks like. Typically you pay to have it produced and delivered to your warehouse or store, although you can sometimes contract to have it drop shipped. You then sell the product to other wholesalers or directly to consumers.
Reseller of Products
Contrast the above with buying products from other companies with their brand names on them. In this case, you buy the product from the manufacturer with their label (and brand) on it. You then resell the product to your customers.
White Label Products
White label products are manufactured by a contract or third-party manufacturer and sold under your brand name. As the buyer, you only specify what the label looks like. In this case, the manufacturer is already an expert in manufacturing the product you want, they produce the same product under other brand names, and therefor the manufacturer specifies the what goes in it and how it’s packaged other than the brand name you specified that appears on the label.
What are the benefits of white labeling software?
It’s quick and easy to brand
White label solutions can offer advantages if you’re trying to think of ways to add new features to your business. White label solutions are generally fully integrated and ready-made, which makes branding very easy. As the reseller, you’ll be free from concerns about needing to spend time and money on research or development. You can add your own branding and identity, and get back to business.
It keeps your customers happier
Your customers have an end goal, and using a white label solution can give them a clear and simple path to reaching it. The extra months (or even years) that it takes to develop your own solution can force customers elsewhere for solutions. You can avoid this with a prepackaged solution that meets their needs immediately.
It saves you time and money
Developing a solution from scratch takes a large amount of financial and human capital resources — not to mention time. While a custom solution may seem at the outset to be the best alternative, you may quickly find that the effort derails internal business processes and busts budgets. Even if you think you can build it yourself, it’s important to factor in time for marketing. Remember the time it takes for architecture, design, building, and testing the solution. If you require a fast deployment, cutting corners in any of these steps can leave you even further behind. When time is of the essence and you need to be speedy, investing in an existing solution may be more cost-effective in the end.
It allows you to focus on your business’s core competency
In many cases, the solutions that companies hope to build themselves fall far outside of their areas of expertise. It’s not smart to stretch your resources to do something that doesn’t fit within your core competencies. Be sure to look closely at the solution you need and compare it to your available resources to help you decide whether a white label solution would help you reach your goals more efficiently. Prepackaged solutions provide an opportunity to trust the experts in the specific space you are focused on, and avoid making the same mistakes that others have made before you.
This article about white label software was originally published at Engati Blogs.