You’re likely familiar with the practice of white labelling without even knowing that’s what it’s called. Think of a product that is manufactured by one company while another company brings it to market to sell with their branding.
White labelling in the web and tech industries is a newer practice. This is when software and development services are sold unbranded by one company and then sold and branded by another.
When it comes to saving time, resources and money, it’s no wonder the practice of white labelling is gaining momentum. Read on to learn more about white labelling, how it works, as well as some of the pros and cons.
What is White Labelling?
White labelling is when a product or service is sold under one name but it was actually made or created by a different company.
When a marketing company or web design firm needs help providing certain services to a client, they can use white labelling to fill in the gaps.
In terms of software development, web development services can also be white-labelled. Not to be confused with outsourcing, white labeling has increased in popularity in recent years.
How White Labelling Works
Having a great idea and being able to transform that into a viable business takes resources, talents, and staff. White labelling is a crucial resource for many businesses, especially small companies and start-ups trying to compete with industry giants.
When a company utilizes white labelling services they are paying a third party company to complete a task needed by a client. The company will then charge more than the third party is charging for white label software.
Utilizing the practice of white labelling can save a small company a lot of time and resources. Using white labelling can greatly increase distribution power as well.
Why Use These Services?
Smaller companies may find it hard to provide the full line of servicesneeded to keep up with a larger firm. When a marketing company or web design firm needs help providing certain services to a client, they can use white labelling to provide the services they are lacking.
Many services would require a large, highly skilled staff that a small company wouldn’t be able to afford on a constant basis.
A fleet of software can also be sold quickly without the need for development. Think about how much money can be saved on in-house staff and overhead costs. Not to mention the development time.
Ready to Sell Services and Products
White label software and solutions that are already ready to go are a great option as well. New services and products are delivered to your business in no time. You can turn around and sell these services or products almost immediately.
These white label solutions are usually ready-to-sell, fully integrated, tested, and vetted. All you need to do is brand them and hit the market. There is no time wasted on development and testing.
White label software and products such as these will give your customer a product almost immediately. Since there’s no ramp-up time for them to wait for development, this is a major selling feature.
Forbes discusses how there’s no need to reinvent the wheel. Mistakes and kinks are already flushed out by the time you get the finished product with white labelling.
The Pros of Using White Label Services
Using a white labelling strategy can open up a company to being able to provide a wider array of services as well. This can help gain market share and referrals. Companies can gauge what to charge based on their costs to the other company.
White labelling allows company owners and principals more time to pitch new clients, promote their brand and market the company. With time freed up by delegating work, there’s more time to focus on business development.
Techopedia discusses the perks of white labelling and how a company can save a lot of resources on the development. Research and development, also known as R&D can cost small companies a lot of money and time.
Potential Cons with White Labelling
While there are more pros than cons when it comes to using white label services, there is always the potential for problems. One common issue is that you are now the middle man. Miscommunications may arise when you’re translating the needs of your client to a third party.
Misunderstandings are bound to happen. Communication and clear expectations are key here. The clearer you are in terms of feedback, deadlines, and goals, the better.
Time is money. If a project gets underbid or takes longer than planned, you run the risk of eating into your profits. This is why communication is so important. You’ll always want to build in extra time and money for any issues that come up.
By using white labelling services, you’ll be able to focus on your client’s end goal instead of the logistics involved with completing their project. Outsourcing to an expert can help take the pressure off of you.
You can make sure your client’s needs are met by being the communication bridge between your client and your white label service provider.
One of the best perks to outsourcing is that it really lets you focus on the relationship you have with your client.
A white-labelled solution helps you get products developed by a specialist for your clients. If there is someone else who is an outsourced developer who can create a product better than you can, it’s worth the cost and time savings.
By using white label solutions, you’ll have more time to devote to business development.
There’s no need to start from scratch and hire full-time experts. The Web Ally is ready to get started on your next web project. Contact them here to talk about your needs.
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