White label products are separate from white label services. Do you know what the difference is? Can you define white-labeling itself, or identify any white labeling companies? Don’t worry if you’re unsure. You’re not alone.
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When it comes to deciphering white labeling’s meaning, there are so many moving parts. I’ve put together this rundown to cover the full scope. I’ll take you through everything you need to know, including white-label pricing, how to white label a product, plus all the benefits and risks of white labeling products. And more, if you can believe it!
Table of Contents
- White labeling meaning
- Define white labeling: White labeling definition
- What are white label products?
- Examples of white labeling products and services
- How to white label a product
- Define white labeling: white label, private label, co-branding, and outsourcing
- What are white label products and services: Types and varieties
- Why would an agency want to white label products?
- What are white label products pros and cons? [Infographic]
- How to white label a product profitably
- Define white labeling marketplace
- White label pricing
- What to look for in white labeling companies?
- What to watch out when hiring white labeling companies
- White labeling meaning: One last word of advice
White labeling meaning
Before jumping into a white labeling definition as it applies to business (the white labeling meaning we’re most familiar with today), first I want to look back on the origins of the term “white labeling”.
Define white labeling: White labeling definition
Origin stories are fun, of course. But what is the white labeling meaning that matters for your business?
White label products and services are re-brandable, re-sellable solutions. They are produced by one company to be rebranded and resold by another company. White labeling companies (sometimes called white label suppliers or providers) create a product or service to be rebranded by a reseller as their own product to their end-consumers.
To define white labeling, here’s a visual we like to use.
But remember I mentioned that it’s important to distinguish between white label products and white label services? Let’s cover that quickly.
What are white label products?
So, what are white label products? White label products are things you can use, such as tools or items. Consider white labeling companies like dog treat manufacturers. They sell their white label products to pet boutiques, who purchase them at wholesale prices. The boutique then repackages the treats and resells them to their customers with their name and branding on the label. Makes sense, right?
But when dealing with white labeling digital products, things get a bit fuzzy. You can’t exactly hold a specific digital product or tool in your hands the way you can a bag of dog treats. And holding your laptop or smartphone in your hands doesn’t count! Understandably, this can lead to conflating digital products and value-add services.
White labeling definition: products
When it comes to digital solutions, white label products are defined tools and platforms that can be used and sold. After a product is sold and the client is onboarded, there is often no additional work or obligation from the seller.
To reiterate, a white label product can be anything,from a water bottle to a mobile phone case to even a screwdriver. You need to research the manufacturers of your line of products and place orders. Alibaba.com has come to define white labeling, having one of the most comprehensive directories that connects suppliers with merchants everywhere.
However, the white labeling meaning and business model is also relevant to digital products sold online by agencies, media companies, MSPs, and more.
White labeling products can include:
- Digital templates
- Productivity trackers
- Sales intelligence tools
- Client dashboards
- CRM platforms
- Educational material
- Various apps and software
- And more
White labeling definition: services
On the other hand, services enhance white label products. Services are on ongoing tasks performed, content created, and value added. And the white labeling aspect extends to services, too!
Let’s go back to the example of the pet boutique. Not only do they know how to white label a product like dog treats to sell in-store on their ecommerce site. They have also purchased a digital product for their website: a live chat widget.
However, there’s just one problem. The pet boutique doesn’t have enough staff to support the live chat feature and respond to all the customer queries rolling in. Thankfully, white labeling companies like the one who sold the chat widget often offer additional white label services.
For an additional fee, an expertly trained customer support agent will manage the chat widget as an extension of the pet boutique’s team. In turn, the boutique does not have to hire or train new employees. Pairing white label products with additional services ensures a business doesn’t drain its in-house resources.
Often, white label pricing is affected not only by the products sold, but also by the value-added services supplied. The service level can always be scaled up or down to be most cost-effective for the business.
White labeling services can include:
Examples of white labeling products and services
What are white label products and services? Answering this question with examples is probably the most helpful. I will provide a few common situations that define white labeling below.
White label meaning and examples: Software
White labeling software is like leasing or renting software from a provider branding it as your own. White label software is provided unbranded as a clean slate to a reseller or a service provider like you. You add your own branding and sell access to the platform to your clients.
- Company X, a white label marketing software provider, sells their marketing software to company Y, an agency, to re-sell.
- Company Y then rebrands the marketing software with their own logo and sells it to company Z to use.
When it comes to white label pricing, typically this is a SaaS arrangement and users subscribe and pay on a monthly basis.
In this case, the end user is another business. White label products like software can also be sold to end customers, depending on the product and service model of the white labeling companies or software supplier you’re partnered with.
There are several benefits to white labeling products like software, including a fast roll out since a company doesn’t have to develop the digital solution in house. Service providers or resellers of all stripes also enjoy an expanded portfolio of product offerings. Since they are white labeling software as their own, they’re building their brand credibility as well as attracting new customers. You can do it, too.
White labeling companies: Software
There are several prominent white labeling companies and software providers in the market. Most work in targeted domains and define white labeling efforts by a particular niche. Some others like Vendasta operate in a wide range of businesses. Here are some white labeling companies to consider.
Vendasta: Vendasta is world’s #1 white label products and services provider that sells digital marketing software to agencies, media companies, MSPs, and more. Vendasta’s white label software marketplace provides new products across all categories. Wondering how to white label a product with Vendasta? Partners can easily rebrand our software with their name and logo, set their white label pricing strategy, and sell it to their business customers. Our Marketplace features 250+ products and services, but also makes bundling easy with six streamlined, ready-made product packaging recommendations for all budgets.
ProfitBooks: What are white label products featured under ProfitBooks? They fall under the accounting software niche. ProfitBooks’ white labeling products include inventory management, invoicing, billing, expense tracking, and more.
DashClicks: DashClicks has the following white labeling definition or slogan: “built in apps for every business solution”. Their website design and app creation software helps you create custom branded digital products quickly. The platform equips agencies of all sizes with the white labeling tools they need to succeed.
AppInstitute: This drag and drop app builder claims to be one of the easiest. If making apps for Android and iOS without writing a single line of code sounds like a game changer, AppInsitute’s white labeling solutions may be a good fit for you.
3dcart: 3dcart claims it has everything you need to build your online store of white label products. From real-time shipping to your choice of payments, its software has mobile-ready themes, SEO, and marketing tools to help you increase conversion rates.
AlphaPoint: AlphaPoint is the white label platform for exchanges, brokerages, and tokenization of assets. That is to say, their white labeling products are specific to their niche. AlphaPoint provides full-stack software for operating a cryptocurrency exchange as well as firms looking to create and manage their own security tokens using blockchain.
Does crypto and blockchain have you a little lost in the sauce? Hey, I get it. I can provide a comprehensive white labeling definition, but don’t ask me about crypto. I know when to stay in my lane!
Nuwebgroup: Nuwebgroup used to cater to the event industry, but has since branched out. They offer white labeling that leverages digital transformation tools and global consulting, alongside their event technology solutions such as a virtual events platform, event ticketing and registration, and more.
White label meaning and examples: Services
As I mentioned before, white labeling services are ongoing tasks, fulfillment, and marketing work that is subcontracted. If you’re asking yourself how to white label a service, it’s the same as how to white label a product.
It’s like getting another agency or production house to do the work (or part of the work) for a payment—but instead you offer your services to your clients. White label services like marketing automation can help your clients to use multiple channels to reach their target audience.
- Company A, the digital agency service provider, sells their digital agency services to company B to re-sell.
- Company B then rebrands the services with their own logo and sells it to company C, the end consumer.
- Team from company A fulfills the digital services company C purchased from company B under company B’s brand.
Typically this is the white labeling definition of a SaaS arrangement and users subscribe and pay on a monthly basis.
In this case, the end user is another business. Services, just like white label products, can also be sold to end customers, depending on the product and service model of the white labeling companies or software supplier you’re partnered with.
Again, Vendasta is an example of a white label service provider that sells digital marketing services to agencies, media companies, and more. These companies then rebrand our services with their own branding, set their pricing strategy, and sell it as their own to their business customers. How to white label a product is the same process as white labeling a service.
White labeling companies: Services
There are several white label service providers in the market serving a variety of needs, from content, to email marketing, to reputation management. Here are some prominent examples.
Vendasta: Vendasta’s white label digital marketing services can do all the fulfillment work that your brand needs. We cover digital advertising, web design, social media posting, reputation management, content creation, email campaign management, listings management, and more.
Our white label marketing service fulfillment is seamlessly integrated with Vendasta’s marketing platform. This means you have full access to a powerful dashboard with comprehensive reporting all in one place. Agencies can use Vendasta’s Executive Report to help clients keep track of all their work. Plus, at the end of the day, you control your margins so you can create a white label pricing strategy that is competitive yet makes sense for your audience.
ActiveCampaign: ActiveCampaign is a popular brand providing complete marketing automation and CRM suite for businesses. They offer both white label products and services. Speaking of the former, you can choose from their services like email marketing and marketing automation and sell them as an extension of your offering.
Mautic: Mautic’s marketing automation is powered by open source technology. Owned by Acquia company, the world’s only open marketing cloud, Mautic enables brands to integrate and personalize all their digital properties and channels into a seamless customer experience.
Inbox Army: Agencies can use Inbox Army’s white label products and services such as email marketing and full-service campaign management can be game-changing. Plus, they offer email template production, email marketing strategy, email coding and design, and even campaign audits. Its multi-ESP platform supports a variety of software such as MailChimp and Salesforce, and has flexibility that can be tailored to both you and your clients’ needs.
Constant Content: This is a place for white labeling marketing content where one can find specialists to write for blogs, whitepapers and website copy for you, or even do SEO.
Social Pilot: SocialPilot’s white label social media management provides a complete range of social media services including scheduling and posting, integrated social inbox, API integration, secure interface with access controls, email integration, and personalization. What are white label products without accompanying services like these?
Landingi: With Landigi’s white label services, you can build unlimited landing pages quickly and easily. It also effortlessly integrates with solutions like Zapier, MailChimp, HubSpot, SalesForce, or any email marketing or CRM tool you are using.
How to white label a product
To recap, white label products are produced by a provider to be rebranded under another business’s name (Super Amazing Pet Boutique) and resold to an end customer (dog treat buyers!). White labeling gives providers access to a large distribution network through their reseller partners, and resellers can expand their product and service line easily without producing their own goods and solutions from scratch.
The key to white labeling products is anonymity. Consumers who buy the end products are not aware that they were originally produced by white labeling companies. The benefit to that? Your brand gets all of the credibility, loyalty, and trust.
When white labeling products of the digital variety, customer-facing aspects of a tool, platform, app, or website will be customizable so you can add your logo, aesthetic, or branding.
Additionally, any correspondence between customers and the white-labeled extension of your brand (say the customer service agent manning the chat widget) will also remain under your company and domain name. A key aspect of successful white labeling is in these details.
Define white labeling: white label, private label, co-branding, and outsourcing
White labeling meaning vs. private labeling
How do we define white labeling as opposed to private labeling? Are they the same thing? Sort of.
Typically, the terms “white labeling” and "private labeling" are used interchangeably and are the same thing when referring to rebranding software and services.
The term “private labeling” is more commonly used in reference to goods, whereas “white labeling” and white labeling’s meaning is more commonly used amongst those in the software industry. Whichever way you look at it, the product or service that is being sold is made to be rebrandable so that the seller can sell it under their own name to the consumer.
Variations on private labeling
In the fashion and retail industry, for example, private labeling is a common practice (Shopify). Retailers create their own brands with similar styles of clothing at a competitive price point. The benefit? Offering a similar style of shirt or dress, but for a much cheaper cost).
Also in the case of private label goods, some products are white labeled under the private label for exclusive brands. That being said, there are a few different models or strategies of how private label goods are channeled. At the end of the day, the private label is branded under the seller.
White labeling, in the case of software and services, allows resellers to achieve a competitive price point (similar to a private label model), without having to add the expenses of coding the software in-house. White label pricing freedom is one way that becoming a white label SaaS reseller is so profitable, no matter what the economy is like. Thus, your business is allowed to focus on its core competencies. All the bang for way less buck.
White labeling meaning vs. Co-branding
A product or service can be either white labeled or co-branded, but not both. Co-branding is when the original supplier’s brand is added to the product as well as the branding of the re-seller. The method effectively leverages the brand power of the better known brand (Investopedia). This is a very different tactic compared to white labeling, in which only one brand is featured and promoted on the white label product or service.
White labeling meaning vs. Outsourcing
This one can be more tricky when we want to clearly define white labeling. Outsourcing is paying someone else to accomplish a function for your business—whether it be a one-time thing or a continuous service.
A service or creation of a product can be outsourced, and the end result may or may not be white labeled. It's only white labeling if you buy a product or service and then sell it to others with your brand name on it.
For example, if you want to outsource your digital agency function, you are simply outsourcing your digital agency services under your own brand. But, if you want to outsource your digital agency services to another company and sell the services under your company’s brand, you are outsourcing and white labeling.
Now, if you want to keep your digital agency services in-house and sell the services under another company’s brand, you are outsourcing and not white labeling.
What are white label products and services: Types and varieties
Here is a list of some common types and related white labeling terms.
- B2B (business to business) white labeling meaning: White label products or services provided by white labeling companies that sell their products or services to a reseller. That reseller, in turn, sells it to another company (the end user).
- Example: Vendasta creates white label products and digital marketing solutions that our agency partners rebrand and resell to their business clients.
- B2C (business to consumer) white labeling meaning: Products or services that are resold by a company and sold to a consumer or person (the end user)
- Define white labeling SaaS (software as a service): Rebrandable software that is licensed on a subscription basis and hosted over the internet (no downloads required). Resellers brand the software as their own and sell it to the reseller's clients. White labeling products like SaaS has disrupted the traditional software delivery method where users would have to buy a subscription on a yearly basis. It also offers more evenly distributed returns on a monthly basis, which equals more cash flow.
Specific white label solution offerings:
- Content: Written copy (blogs, ads, web copy, case studies, ebooks, email copy, and more) that is offered as a product or service package, branded under a business’s name.
- Dashboard: Rebrandable dashboard on white label software that is provided to the reseller's clients so they can manage multiple solutions from one location.
- Digital advertising: Rebrandable digital advertising services that build SEM (search engine marketing) and social advertising campaigns for reseller's clients under the reseller's brand.
- Digital marketing: Rebrandable digital marketing white label products or services for reseller's clients, such as online advertising, reputation management, and social marketing solutions.
- Listings management: Listings and citation management software that is outsourced but branded as the agency’s own. The agency manages white label pricing, marking up their selling price and selling the listings management software to the agency’s clients.
- Marketplace: Rebrandable marketplace where companies can curate a selection of digital products, apps, packages, and solutions to their clients as their own. Many products themselves are rebrandable, allowing companies to provide clients with the best tools while maximizing brand’s exposure.
- Platform: Rebrandable software platform that the reseller brands as their own, marks up their prices and is resold to the reseller's clients.
- Reputation management: Online reputation management software that is outsourced but branded as the agency’s own. The agency marks up their white label pricing and sells the reputation management software to the agency’s clients. The reputation management software is provided by white label software provider.
- SEO: SEO software or service that is outsourced but branded as the agency’s own. The agency marks up their white label pricing and sells the SEO software to the agency’s clients. The SEO software is provided by white label SEO software provider.
- Social media management: Rebrandable social media marketing software that agency resellers sell to business clients. Allows businesses to grow their fan base, increase engagement, and share relevant content across all social media channels from a single location.
- Websites: Resellable, easy to use website creation platforms or services that are sold to web design and development agencies.
Why would an agency want to white label products?
In this section I’ll discuss the different reasons a business would want to white label products to sell, as well as the pros and cons of reselling software and services. There are many reasons an agency may want to consider white labeling digital marketing software and/or digital marketing services, including:
1. White labeling products: You want to expand your offerings (and quickly)
Whether you want to attract new customers, keep the ones you have and reduce churn, or increase your basket size from your current customers, white labeling allows you to expand the scope of your current offerings. You may be an agency that specializes in reputation management, but your customers are asking for websites or SEO. How does one just jump into that? We’ll take, “what are white label products” for $300!
2. White labeling products: You want to land both more and bigger clients (scale, scale, scale)
If you want to define white labeling and its value by one benefit, I’d choose its ability to help you scale. The more products and services you offer, the more you will be able to attract the attention of bigger fish in the pond—who often need more than just one digital product or service fulfilled. You no longer want to sell a-la-carte solutions. You want to be a full-service agency that can be a one-stop shop that fulfills your clients' every need, and so well, that they keep coming back.
3. White labeling products: You want to enhance your company’s brand (be seen as a serious competitor)
You want to add more white label products and services, but you want to do this under your company’s name. How credible would it look if you started offering SEO products or services under another brand’s name? Your customers may be a little confused and could lose trust in your business. White labeling companies know how to white label a product so that it integrates seamlessly into your offering. Your clients come to you because they trust you and white labeling not only puts your brand name out there more, it further enhances your reputation as a trusted industry player.
4. White labeling products: You want to get back to focusing on your core competency: Sales (keep that sales funnel going)
Developing a new software program or service takes a lot of resources. Partner with a provider that has mastered white labeling, meaning they make extremely high-quality products and services. Then you can get back to your own strengths and core competencies—selling to clients. Adding your label to a proven offering and doing your due diligence to make sure it is our guide will help will save you a lot of risks, capital and time.
What are white label products pros and cons? [Infographic]
How to white label a product profitably
If you are wondering how to white label a product profitably, which white label products are right for you, and what are white label products with the highest ROI, this section is for you.
4 profitable benefits of selling white label products
1. You benefit from your partner’s experience and resources
There are fantastic solutions out there already from white labeling companies that have been in the game for a while. They have had a lot of time and experience developing their products and services and have been continuously improving from the get go. Your agency is benefiting from their track record, experience in the space, and ability to go-to-market with confidence. Developing software can be a risky endeavor and requires a lot of resources to build, maintain and improve.
2. You can expand your offering quickly, leaving you more time to focus on growing your business
White labeling allows you to offer a product with your branding on it relatively quickly. After completing onboarding and training, you can start selling white label products as your own. Bypassing all of the extra legwork required to develop your own software frees up your time and energy for you to focus on helping your customers and selling. If you are white labeling more than one product, then you are expanding into more markets and are able to sell more products to your current customers, thus increasing your breadth and depth. This allows you to scale and grow your business much faster than trying to develop software yourself, all with very few barriers to entry.
3. White label pricing: You can achieve a steady cash flow with a SaaS incremental revenue model
Cloud-based computing and software accessed over the internet has done away with purchasing a yearly software license. Companies now charge a monthly fee for software products. It may seem a little scary that a customer could leave on a monthly basis instead of a yearly basis, but this distribution of monthly recurring revenue helps keep your cash flow steady. Plus, with white label pricing freedom, you have more control over that steady cash flow. Offering additional products and killer customer service will help keep your customers coming back to you. Also, allowing them to pay the costs monthly helps their cash flow, too, so white label SaaS is a win-win for everybody.
4. Your partner wants you to succeed and your success is their success
White labeling companies want you to succeed. Your success is ultimately their success. If you are able to make a business of reselling their white label products, you will likely continue to be a customer. Therefore, they are (or at least should be) there to help you with whatever you need to keep selling and growing your company when you’re white labeling products. This includes training, support, materials to help you become an expert on the solutions you offer, as well as marketing materials to help you pitch to your customers. Be prepared to create some of the content yourself, of course, but your partner should give you a healthy amount of rebrandable materials to get you started.
White labeling products vs. third party application
Is white labeling better? It all depends on the needs and goals of your agency. If your agency doesn’t feel comfortable putting your brand name on someone else’s software, or you really prefer a certain third party application because the features align well with your current offerings, then you may want to go through a third party. Maybe their price is right or they are offering you a great deal. Just be careful that the cost savings outweigh any possible cons. Make sure you do a thorough vetting process and ask as many questions as possible.
One thing to watch out for: Some third-party applications and white label partners may sell to your customers, local businesses. This would make your partner also your competitor. However, there are many white labeling companies that have similar goals and as few competing interests as possible. For example, Vendasta doesn’t sell to small and medium-sized businesses. We only work with agencies, media companies, MSPs, and our other partners.
At the end of the day, you have to do your research. There are some white labeling companies that also sell directly to SMBs. When analyzing which solution and route you want to go with when white labeling products, make sure you ask your prospective partner if they also sell to the businesses you will be targeting. Ask them to define white labeling practices and what steps they will take not to snipe any of their partners' current and prospective clients.
How to white label a product with confidence
Do you have any issues with putting your brand on another company’s software? There is a risk in doing so, and it is important to do your due diligence to choose the right solutions provider to partner with.
If there is a problem with the white label products you're selling, the customer will place the blame on you—because your logo is on it. I suggest weighing the pros and cons of white labeling. Do the pros outweigh the cons? If so, then the next step should be a process of comparing white labeling companies and software suppliers and vetting them out until you find the right match for your company. Use this guide to help you decipher between a good and bad partner.
How to white label a product with confidence:
- Asses your business needs honestly
- Weight the pros and cons by using resources and guides like this one
- Research white labeling companies
- Ask for demos of the white label products and solutions on offer
- Pay attention to your potential provider’s reputation and track record
- Conduct market research so you can figure out a competitive white label pricing strategy
4 profitable benefits of selling white label services
1. You can add more service offerings to your agency, quickly and easily
Many agencies start out doing one thing—maybe reviews or social marketing. Then you land some bigger clients but they end up leaving because they also want listings and SEO. You want to become more of a full-service agency to keep your clients as they grow, while also continually attracting more business. The more value-add services you can provide along with the products you sell, the more you can bundle and scale. Be your clients’ one-stop-shop and reduce some of the vendor clutter they have been facing.
2. White labeling digital agency services is a scalable solution
Speaking of scaling, when you white label digital agency services, you are simply responsible for billing the client. At the end of the day, you can’t do everything and sometimes hiring a fleet of new staff is unfeasible. When selling white label products with added services, there is an efficient onboarding and education process for clients. After that, when they have issues, the white labeling companies have digital agents running the support for you and doing the heavy lifting.
3. It frees up your time to focus on your core competencies
If some digital agency services aren’t your wheelhouse, you need to become an expert in SEO and train your current agents on SEO. SEO (and other digital marketing specialties) are areas of expertise where it takes a lot of time and knowledge to get good at. If you think a comprehensive white labeling definition is long-winded, wait until you start taking a deep dive into SEO. Additionally, many clients want to see hard proof such as domain authority to know you have experience with SEO services. Leveraging fulfillment services means you can leave certain areas to the experts and focus on selling and building new client relationships.
4. You get a dedicated team of knowledgeable and trained agents focused on your business
You don’t have to deal with the overhead of additional resources such as taxes, insurance, training, or hiring. You could define white labeling ROI simply based on the fact that you don’t have to deal with turnover and the cost of acquiring and retaining digital agents. And maybe most importantly, you don’t have to deal with HR issues or the professional development of employees outside your realm of specialty. It’s simple: You sell value-added services to your clients, and then leverage your white label provider’s expert fulfillment team to deliver the work.
White labeling fulfillment services vs. in-house fulfillment
When providing a white labeling definition, there’s no clear cut answers for when it will be the better option. Again, it will all depend on the needs and goals of your agency.
If you can manage the lift of providing in-house fulfillment to all your clients and that works for now, that’s great. Perhaps you do not yet have the time or desire to research white labeling companies that include fulfillment services in their offering. Things like creating profitable white label pricing strategies that take into account value-added services also require some time.
However, your business might reach a point where you hit a ceiling. You might have to turn away new work, or fall behind on delivering quality work to your clients. White labeling products with included services will become a nightmare if you attempt to do it all yourself, once you reach a certain point. And the thing is—that is the point you want to reach.
Leveraging white labeling fulfillment services unlocks new possibilities and means you will never have to say no to client requests or stop taking on new work.
One thing to watch out for: Again, some third party agencies and white labeling companies sell to small and medium businesses directly. They can easily become your competitor with access to your client list. Find an agency partner that has similar goals with as few competing interests as possible. When analyzing which solution and route you want to go with, ask your prospective partner to define white labeling practices and what steps they will take not to snipe any of their partners' current and prospective clients.
Should you resell white label marketing services?
Similar to the conversation above in regards to white label digital marketing software: Do you have any issues with putting your brand on another company’s digital agency services? There is a risk in doing so, and it is important to do your due diligence when researching white labeling companies to choose one to partner with. If there is a problem with customer service, or any errors are made, the customer will place the blame on you because your name is on the line.
However, in my personal opinion, you have to resell marketing fulfillment services if you want to set up your business to scale. My advice is to add on managed services slowly and your business ramps up.
Define white labeling marketplace
A white label software marketplace streamlines the whole endeavor for both you and your clients. A marketplace provides white label products, services, and a place to sell everything. Customers can help themselves by adding products and packages, or even researching a bit more about products they’re looking to add in the future.
Purchasing resellable solutions from a software marketplace is way more convenient than buying one-off solutions from various vendors (think about why we love going to the mall so much!). It is a platform specifically designed for multiple vendors to sell solutions and services in one place.
Other benefits of a white label marketplace:
- Offers a bigger range of products and services to resell to clients
- Requires only one login to keep track of
- Streamlines reporting and billing all in one place
- Curates and vets marketplace software solutions so you can purchase with trust
- Often will offer white-label fulfillment services to deliver at scale
If you want to look at white labeling products and services, and if you want a good mix of both worlds, want to consider some type of white label marketplace to make managing it all less complex and more efficient.
White label pricing
So, you want to know how to white label a product profitably? It all comes down to the control you have over white label pricing. When you’re researching white labeling companies to partner with, to benefit from the best white label pricing strategy, ensure that:
- You’re purchasing white label products at wholesale prices
- There are no volume requirements
- You only paying for what you sell
- You have freedom to control the white label pricing and profit margins
Here are a few other white label pricing tips to get you started on the path to profitability.
- Bundle white label products and services into different packages. Remove decision fatigue from clients, reduce the complexity of being faced with endless solutions, and discourage a-la-carte purchasing. If you want to be the one-stop shop, offer packages for every budget. The aim is to “land and expand,” meaning you simply want client buy-in first. You can always scale the packages (along with the amount clients pay) up.
- Expand your service levels. Two clients have purchased the same product from you. But one is delivering way more recurring revenue. Why? Because service level tiers can greatly increase your white label pricing. Offer a range of DIY solutions (fully managed by your clients with no effort from you) to more expensive do-it-for-me packages where you handle fulfillment.
- Understand the difference between margins from service and margins from revenue. When building your white label pricing strategy, it’s important to understand that the highest margins don’t always mean the highest revenue potential. Selling high-margin white label products alone, you need a huge volume to succeed. Selling value-add services at a lower margin can actually be the more profitable option.
- Make sure to upsell and cross sell. To maximize your profit potential, white labeling products with value-added services can greatly increase the lifetime value of your clients. As your clients grow, look out for opportunities to scale up their services or sell them new products.
What to look for in white labeling companies?
What are white label products worth if you do not have a trusted provider by your side? When researching white labeling companies, make sure you do your due diligence. Here are some questions to ask yourself.
They have similar goals and vision, it’s a good fit
Find a white label partner that has a vision or goals that align with your business. Remember, this is going to be your strategic business partner. You want to make sure this is a good fit for both sides. Unless they can define white labeling policies and assurances they won’t try to sell to your customers, I would steer clear of a partner that sells directly to SMBs.
They provide a solid product or service that is right for your business
Look for a partner that offers solid white labeling products and services with a proven track record. When considering software, do they continuously improve their product? Are they willing to make improvements based on your suggestions? Is it user-friendly? Do you have control over white label pricing?
They have a solid reputation
Are they honest, transparent, and upfront? Do they have a good reputation in the industry? We know all about reviews in our industry, so do your homework on white labeling companies. How long have they been around? Are they considered an expert in the industry? Remember that no reviews are just as bad as negative reviews when it comes to white labeling.
They have experience being a white label partner
If you are white labeling their product or service, make sure they have experience and knowledge in being a good partner. White labeling software and services is more involved than just adding a logo to an existing product. The best white label partners will understand how to white label a product on a deeper level that requires unique processes that are strategic and well thought out.
They offer stellar service and support
Is there a clear and organized method for onboarding and training your business so you can start selling white label products soon? Is there a detailed and thorough training process? Do they have adequate resources to help you continually learn and grow? How fast they have been responding to you thus far is a good indication of how organized the company is.
They offer proof of performance through reporting
What is the potential partner’s white labeling definition of success? What kind of reporting or analytics do they offer so that you can provide proof of performance to your customers? You need to be able to show that the product and service is worth it and is helping the business. Otherwise, your clients will have little reason to stick around.
Their contract terms are clear
Do they have a detailed contract process and are they clear about the terms, conditions, and white labeling meaning? If they are transparent and open, you will be able to tell at this crucial juncture if you haven’t been able to tell before. They should be clear on their minimum lock-in period. Don’t be afraid to ask questions before signing on the dotted line.
You can test drive the product or service
How will you know if white labeling products or services will work for your business if you can’t try it before you buy it? You should be able to take a look at the software or play the part of a potential client. Most white labeling companies will be happy to show you firsthand.
What to watch out when hiring white labeling companies
They also sell to SMBs
If they do, make sure there is a way that they can ensure that they won’t poach your clients or that you won’t be in competition with them. If they can offer a lower price and you are selling the same white label products, you know that the SMB is probably going to choose the more cost-effective option.
Their products and services are too cheap to be true
You should expect to pay wholesale prices, but be skeptical of white label pricing that is too good to be true. You are looking to add a product or service that adds benefit to your clients. Make sure you do your homework and act in the best interests for your agency and customer.
They are bad or inconsistent with communication
Bad communication between you and the white label service provider can lead to problems that can snowball. The result? Likely broken client relationships down the road. Remember, when white labeling products or services, your brand name is on the line. Make sure you put your brand name on a product or service that you are proud to offer your customers—as proud as you are to offer your own in-house products and services.
There is little brand consistency
This is another point that lines up with communication. Make sure the white labeling companies you are considering take an interest in knowing your brand and try to understand how to represent you. If you are just another number to your partner, expect them to treat your customers the same. If you have specific standards or procedures for how you treat your customers, don’t settle for any less. You want the white label products or services to be an extension of your brand and the level of quality that you bring to the table.
White labeling meaning: One last word of advice
Don’t go overboard with white labeling
White labeling doesn’t mean that you should lose your brand’s identity. Make sure you are still making a name for your business! Have a defined brand and core that stems from your company vision and goals. Offer something unique of your own, to differentiate and stand out from the digital marketing crowd. As you know, the space is becoming more fragmented. White labeling products can be both a unifier and a differentiator.
Remember that other agencies will be working with white labeling companies as well. As convenient as it is to use their white labeling materials, try to mix it up where you can and add a few pieces of original content where possible. If your partner provides a one page sheet or a blog, but you know that you can provide more knowledge because it is your specialty (ex: review management for lawyers), don’t be afraid to produce some original content to show prospective clients you are the king or queen of your niche. In other words, still feel comfortable flexing in your area of expertise!
Just because you are white labeling your digital agency product or services, doesn’t mean you should stop practicing the art of marketing your business. Businesses are constantly marketed and pitched to, how can you offer them something that they need, that no one can fulfill as well as you can? The investment can pay off greatly for your company if done correctly.
Note: original post by Heidi Ambramyk, updated in 2022 by Domenica Martinello