What is White Labeling & How it works? Guide
White Labeling term in a business means that a product is manufactured by one company but it will be sell under the umbrella of different brand name. Or you can say that when you put a product on sell with your brand name but in actual the product is manufactured by someone else this is known as white labeling.
Same goes for services, as they can also be white labeled as well. A service can be considered white labeled only if you are buying services from another company and selling it to your customers as your own service. White label technology can be said that a ready-made software product that is licensed and developed by one company and reselling by another company with rebranding as if it is their own product.
In today’s world of ad market it is quite very difficult to stand out from the rest of the crowd because of the competitive environment. The brand building will require a lot of time, efforts and money. It is a difficult task to brand your product and produce loyal customers. In order to cope this problem marketers have invented white label platforms.
How Does White Labeling Work?
White labeling in a sense is similar to drop shipping. It’s like you are buying the product from a product manufacturer and sell it as your own product at your desirable cost while that product will be sold by your brand and not under the original brand name of the manufacturer. It is an exclusive marketing of a product as your own.
This same goes with the services that are labeled as white labeled services. You are basically charging for the services from your customers more than you are paying another company for it. White labeled services are totally different from outsourcing so don’t confuse these two terms with each other.
In advertising world it works like this: any vendor that you will choose will develop a plug-and-play for your business so you can tailor it and use it. For example a white label advertising platform will be developed by the vendor and tailored to suit your brand and product and you will take it and decorate it more and personalized it to match your corporate identity.
While using white labeling you can easily align your company name, logo, icons, emails and text with your brand easily. At the end when you will be finished with the customization you will be ready to start your white labels sales right away !
Companies use white labels because only few of them can afford their own created solution developments right from scratch. This ready-made software allows them to afford the services or products with the existing technology.
There are some main benefits that a company can get by launching white label products:
- Full control of your brand: White label allows you to create a unique product with your brand by rebranding a white label product as your own product and launch it with your own capitalization service model.
- Quick and easy to deploy: As told white label solutions are ready-made tailored solutions and makes your branding easy and quick. You don’t need to build everything from the scratch or invest extra money and time on it.
- Time and cost efficient: building your own product will require you to recruit people and arrange training programs for them, designing, prototyping and testing of the product and marketing these all are time taking process and cost a lot of money but by using a white label product you save all these costs and time.