White-labeling Software

How to save your funds together with precious time on product development? What will help to simultaneously satisfy the wishes of clients and popularize the brand? White-labeling software and this partner business model answer these requests of entrepreneurs. In the article, we are going to discuss whom it is suitable for and how to properly implement it to get the best results.

What is this model about and how does it work?

White Label is a cooperation model in which one company creates something and another sells it under its brand.

The term came to business from the industry of music, where vinyl records were once passed to radio stations and clubs without any design. Later, vendors applied the latter by themselves according to the reaction of listeners.

Today, this model has spread to many areas and modes of business, for example:

  • Goods that supermarkets sell under their brands.
  • Bank cards that larger companies issue for smaller ones.
  • Collections of coupons or cashback on websites.
  • Affiliate links in blogs or forums.
  • Related online services on websites.
  • Software and applications. 

In all cases, White Label goods and services are bought without branding. You design the product yourself in a corporate style so that consumers associate it with your company. Since you are buying a ready-made solution and cannot influence its quality, it is important to choose a reliable partner who has a good reputation in the market.

Monetization takes place according to the CPA model (cost per action or price per action) when you receive money from a partner for each buyer who comes from your site. This can be a fixed number similar to the number of clients or a percentage of an order.

What are the advantages of White Label and how can it be used?

How is such cooperation becomes more profitable than independent product development? There are five main advantages of this model.

Save funds and time

To develop something new, whether it is a piece of music or an application, resources are required: finances, time, and people. Especially if the project is outside your area of ​​expertise, you will have to spend a lot on training, research, and creation. In this case, it is easier and more profitable to take a ready-made solution and focus on its promotion or utilization.

Passive income

With the right selection of a partner and competent marketing, White Label will bring a stable additional income.

Client loyalty 

Find out

what products or services your clients are waiting for and add them to the site. Do not let potential buyers go to other resources or wait for you to come up with a required solution. Satisfy the needs of consumers and increase the value of the brand in their eyes.

Increasing positions in search engines

With the new product, you will be able to increase website traffic by issuing keywords in search engines. Properly built SEO will attract new users and add weight to the site.

Better design

A white-label product adapted to the corporate identity is usually presented as a separate page with your domain name. It looks much better than flashing banner ads that obscure content and annoy users.

Which brands could potentially benefit from this model? The short answer is that it is applicable to everything, from media and blogs to online stores and travel agencies. For example, software companies offer different products under the White Label model. Software distributors sell PC and Android antivirus software, widgets, Windows cleaners, online security software, and more. By becoming a partner, you can sell products using your corporate identity and increase brand awareness.

In a nutshell, White Label is a popular partnership option for brands. Like every business model, it has its advantages and disadvantages. The benefits of this idea include an expansion of the product line, savings on product development, passive income, strengthening competitive advantage, and increasing the authority of the site.

However, you should consider the inability to influence the quality of the product as technology and design stay the responsibility of the partner, as well as the need to prepare a site for showcase integration and promote a new product.

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