White labeling is a business model in which a product or a service made by one company is resold by some other company as their own product/service (under their own brand name). There are many boons of white labeling for reseller businesses. First of all, it is one of the quickest ways to make an entry into being your own boss. Secondly, white labeling is a trouble-free way of offering your client a new service that is in demand. In this blog post, we are going to provide some of the top benefits of white labeling from a resellers' perspectives. So, without further ado, let’s get right down to it.
Modeling an IT solution for your client will take weeks if not months even if you have a very skillful team of developers and designers at your side, and time is what everyone lacks these days. Creating something from the scratch takes a lot of effort and plenty of time (which is already at premium). So, you need to discover and learn what works for your solution and what doesn’t.
Instead of reinventing the wheel, you can white label it as your own and deliver it to your client. And providing your clients with prompt solutions will definitely boost your core business. Furthermore, white labeling (besides saving your time of building solutions) also saves the time used in testing. The solution is already tested and fully reliable. Hence, you can use that saved time to boost your business.
Building a solution takes a lot of resources, talents, and staff which businesses usually don’t have in abundance. White labeling is a very valuable solution for you if you are a small company with big goals trying to compete with industry giants. This is because hiring more talent and using the latest technologies demand a lot of money, which you can’t afford to spend.
When used and managed efficiently, you can build an entire brand around white-labeled solutions and services. The white-label solutions (you are offered) are usually ready-to-sell, fully integrated, tested, and vetted products. All you need to do is brand these solutions under your own name and hit the market.
White label providers are well aware of the fact that resellers will only go for the best quality solution for their problem. Therefore, they test each product several times just to make sure that the product they are offering is top-notch. By the time of launch, the product goes through various phases of testing and becomes a high-quality solution that numerous companies will want to buy.
Furthermore, the white label company itself takes the headache of upgrading their product and provides you with the solution of the latest technology that you can sell. Therefore, a small business that does not have financial or staffing resources and cannot replicate the product should go for white labeled products.
If you are a nuance to building software solutions, you will most probably fail in the beginning. As a result, you will have to put extra effort to rebuild the product or fix the problems incurred initially. Even then, there is no guarantee that the updated solution will work or the team you are working with is capable enough to build that solution. By the time you have the solution on hand, your budget could be blown, and the software might already need some updates. The entire effort will go down the drain.
But in the case of white labeling, you just get the quality solution without investing much effort and resources, rebrand it and deliver it to the client. If something goes wrong, their team is the one to fix the bugs and take care of the quality. They have the experience of building and maintaining solutions. In this way, there will be no risk directly to your business.
If you wish to build your brand name, hiring a white-label solution providers is the quickest way to do so. Rebrand their quality solutions as your own, and when potential clients use this competent product, they will see your name on the software. As a result, your business will become trustworthy and reliable. In return, credibility is going to help you build your brand at a fast pace.
The customer feels as if he is doing business with you and would like to extend the collaboration, which in turn will boost your business. Moreover, this mutual trust will help you retain your customer and that customer is going to become an ambassador for your business. This is why experts believe that white labeling is the best method of marketing.
Conclusively, if you think there is someone else who is better in building solutions than you, it is better for you to save the cost and time. Instead, use his solution for the betterment of your business and for the satisfaction of your client. This way, you will have plenty of time to devote to business development.
The downside of white labeling falls only to the manufacturer. Manufacturers don’t get credit for the solutions they have built. But they get a lot of potential clients (indirectly) which help their business grow. If we analyze the white labeling strategy thoroughly, it’s a win-win situation for both the solution provider and the supplier.