What is White Label Tech Solution? When and Why You Should Consider Using It For Your Small Business?
White Label Tech Solutions have been known for a while and are now gaining popularity because the tech world is developing faster than ten or fifteen years ago. For new businesses, it’s now crucial to create a product that will be thought out and strong enough to stand out on short notice. So already, there are tons of such solutions represented by the companies (who originally built or bought them) ready to customize them to ‘any’ customer needs. It’s a healthy alternative to the ‘custom building’ and ‘Software as Service’ but like them has its strong and weak sides.
Table of Contents:
- What Is White Label?
- When You Should Consider a White Label Tech Solution?
- When White Label Tech Solution Won’t Be a Good Fit?
- Pros and Cons of White Labeling
- Criteria of the Good White Label Provider
So without further ado let’s look through the White Label ‘phenomenon’ and its pros, and cons. But before we begin, here are some materials you might also need:
- 7 Steps of Project Discovery Phase – You Should Know to Avoid Failure
- How to Hire a Dedicated Development Team – 9 Steps to Simplify the Hiring Process
- How To Build MVP – Step by Step Guide for Startups
- Buying or Building in 2024? Ready Software as a Service VS Custom Development
What is White Label?
White labeling is when a product/service produced by a provider to be bought by a ‘reseller’ rebranded and resold again to an end customer. Simpler said you will pay an original manufacturer for the right to sell their products on behalf of your company.
White labeling can be applied to any industry so software and web development solutions are not an exception. Sometimes it can be confused with outsourcing so it makes sense to look through related definitions too to see the differences.
Outsourcing means hiring a dedicated team, agency, or independent specialist to work on a specific project, custom building the needed solution. Usually, the software created by the company-provider belongs entirely to the hiring client.
Private labeling seems pretty similar to white labeling but there is a minor difference. Private labeling is all about unique products modified specifically for one’s brand.
2. When You Should Consider a White Label Tech Solution?
There are quite a few cases when you actually can benefit from the white label for both businesses that are newly created and that have been on the market for some time too.
Outlining, the white-label solution fits best when:
1. You want to scale the services you provide for the clients
Sometimes clients need more than you currently provide. If you see that clear need but don’t have a big budget and time to create your own solution you can fit the gaps using WL.
2. You need a fast digital representation for a newly created business
Sometimes with a creative idea, it’s now or never. You need a digital representation fast, the deadline is yesterday to fill the new market. In this case, WL solution works great, with a few customizations you get a working product that can serve as a good starting point.
Not sure if a White Label solution fits your business?
3. You want to attract bigger clients
This point is slightly related to the 1 point, the more services you provide the more you create a system. Usually, bigger customers value a ‘one-stop’ solutions that can fulfill all company needs. So WL solution can support you in creating an ecosystem in your sector.
4. You want to appear like a big player
To scale the services there are simpler ways, such as Co-branding but if you want to add more products and services under your company’s name and make it right away the WL solution is your way to go.
5. You want to boost up the inner processes by adding the digital solution
Developing a new custom solution takes a lot of energy and time, especially if you have no experience in it.
3. When White Label Tech Solution Won’t Be a Good Fit?
There are situations when white labeling is not your way to go:
1. Your company is self-sufficient enough to handle everything including custom development.
2. You don’t have an in-house tech team but have a decent budget and flexible deadlines.
3. You don’t have enough budget for the high-quality White Label tech solution. You will increase the risks for your business if you choose low-quality tools simply because they are “affordable”.
4. Pros and Cons of White Labeling
+ Time saver
Creating your own custom software takes a lot of time and effort. You can’t finish this in a week, as you will spend your and your teams’ time on concept creation, and even more time on development and testing.
With white label platforms, you will get everything within weeks.
+ Money saver
Of course, it depends on the solution that you need and the payment flow the provider has, yet choosing White Label to cover the initial needs can significantly save the budget.
+ Entering the market fully armed/ Standing out from the competition
Some markets are crazy competitive and you need to make a loud statement about your company right away. A high-quality WL solution can help you to stand out and make it fast.
+ Right away revenue
Of course, the fully custom solution is a priority but in the initial stage, the WL solution can let you get the first revenue and work on the custom solution at the same time.
+ Focus on other things
With no headache about digital solutions for your business, you can fully focus on other aspects.
+ Adding value for your clients
Adding new features and opportunities for your clients will help you in building a relationship with them and attract new ones/ scale the target audience.
– Limited opportunities
“Purchasing” the ready solution you are limited by the features and quality that it currently has. So from the start, it can’t be a total fit for your business.
– You will have to take responsibility for all weaknesses in this software
Either way, whether it’s custom-made or White Label software you will have to take responsibility for any data leaks or other problems so if you make a wrong decision about the provider you can’t be sure about the quality and risks.
– Your customers will want more
Sounds rather good but in this case, with WL solutions you’re limited within their features and usually won’t be able to scale.
– Support issues
If you’re not tech-savvy and don’t have an IT expert this can become a problem if the WL provider doesn’t offer label support.
– White label provider can be your competitor
It may turn out that your White Label partner is actually selling to your target audience.
– Price and Quality
Don’t be in a rush and choose your platform thoughtfully. You will work on a chosen platform for some time. Make sure you choose quality over price.
– Hidden branding
There’s not much to add to this, you need to make a thoughtful decision when picking the provider.
Considering White Label solution but out of options?
5. Criteria of the Good White Label Provider
But how you can find out if a provider is worthy of your trust?
Make your research
People’s honest reviews are the most reliable source of information. There are platforms where you can find feedback from real people who have already used specific tools. However, the platform should be trusted too as white label solution clients usually want to remain anonymous. You need to be sure that the platform validates the reviews.
Information from a website
Usually, the provider will mention all the needed info on the website. Don’t forget about the “Pricing” page to learn what you can get at different prices. It’s important to know your future limitations and opportunities.
Don’t hesitate to outline all the questions that you have and ask them.
You will want to have a specialist give you a screen share demo. Screenshots aren’t enough.
White Label solutions are popular for a reason and can be a great foundation to start. Yet like any business decision, it requires research and time to look through all the ins and outs. With the modern more customizable solutions white-labeling doesn’t mean that you will lose your brand’s identity.
It’s not an alternative for all companies, so before looking for a reliable partner be ready to spend some time reviewing the options, and don’t forget to weigh the risks.