In a nutshell: What is White Label?
A white label is usually a licensed software product or service. It is then sold modified by another company so that customers get the impression that it is their own. This offers the advantage that the company can market the product on its own and under its own name.
What is a white label?
If a company uses a white label product or service, it is marketed under its own name or brand. The actual manufacturer, however, is someone else entirely and offers its software product with a license, for example.
Thanks to the white label, the company can, for example, better bind its customer base and increase trust accordingly. Another advantage of white labeling is that it saves resources and time.
In addition, a white label can help boost business, which is the case with start-ups, for example. Over time, they build up their own competitive brand name with the help of white labeling. This is because marketing can be much easier with a white label product or service.
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What are the advantages of a white label?
Why does it make sense for companies to focus on white label solutions and market them accordingly? The following are advantages:
The basic principle of white labeling is that instead of reinventing the wheel and investing money and time, companies use an already consistent and mature product. This can make distribution much easier.
- Cost- and time-efficient: If a company develops a new product, this process is quite cost- and time-intensive. If, on the other hand, it uses a white label product or service, costs and time are significantly reduced. Instead, companies focus on other areas such as sales.
- Customer loyalty and trust: The customer is king and likes it when everything works excellently with a product right from the start. With a white label product, he is well advised (for example, concerning teething problems), which means higher customer loyalty and more trust for a company in the long term.
- Own brand: Even if it is a product or service from another provider, it is offered under its own brand. This can be, for example, a dating website with a complete dashboard and user functions. The "white label construction kit" only needs to be renamed and visually adapted.
- Quick and easy implementation: When a company takes advantage of a white label product, it is already fully pre-built and customized. Only a few simple steps are required to implement it. The product or service can then be launched on the market.
- Focus on important things: Not every company is perfectly positioned in all areas. This includes, for example, the development of software such as a CONTENT MANAGEMENT SYSTEM. Instead of struggling with development, the white label is immediately available. Consequently, the company can focus on the important things.
How does a white label work?
If a company opts for a white label, it commissions a suitable provider. The provider then takes care of tailoring the product or service to suit.
For example, this could be a community with a technical background and dashboard that customers can use. The only thing that needs to be done is to adapt the appearance of the portal so that it matches the company (corporate identity). For example, the logo, symbols, company information and other elements are adapted.
Subsequently, the brand new white label product will enter the launch phase under the new flag and will be available to interested parties and customers with immediate effect.
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Conclusion: What is a white label?
Instead of concentrating on developing their own product or service, companies can alternatively use a white label. It is tailored to their own needs and characteristics (corporate identity) and is then immediately ready for marketing.