What is white-label software?
Dec 31, 2020 ● 6 min read
The white-label software term is getting more popular every day. Basically, white-label services are re-brandable, re-sellable items produced by one company to be rebranded and resold by another one.
Table of Contents
But if you're looking for more in-depth information, we'll tell you all about white-label products, solutions, and the legality of white-labeling. We'll even cover the difference between the white-label and the private-label.
So, sit back and kick your shoes off because we're just getting started.
What is white labeling products?
As you already know, white-labeling products can be easily rebranded and resold by the non-producing company.
These same products or services are then rebranded and resold by a different company (the reseller). These products or services are then sold to customers (the buyer).
It seems counterintuitive for producers to allow other companies to resell products as their own and somehow benefit from it. But the triad of parties actually benefits heavily from white-labeling.
Why is white-labeling a thing?
We'll list four main points at the end of this section. But first, here's a little substance to it.
The reason for white-labeling is a simpler answer than you may have thought. White-label software allows the producing company to access larger markets because of the companies utilizing the white-label function.
This business strategy allows companies to offer white-label products that other companies can rebrand and resell as their own. Sounds a little off, huh? Well, it's a common practice, and for a good reason.
White-labeling allows for great solutions to be offered without having to reinvent the wheel. It allows resellers to save money, time and not have to build things from zero.
This tactic is especially prominent in the SaaS sector with white-label software.
If you run a marketing agency, and you need to provide a certain type of software to your clients with specific functionality, but you don't have the wherewithal to build it, you can offer a white-label software.
This way, you can give the client a solution without having to build it from scratch.
3 reasons marketing agencies use white-label
Offer more, get more
What do you do when clients need a service you can't provide directly? That's right, you figure out a way to get it to them. Not only will it help you retain customers, but it can increase the return on existing clients and potentially pull in more clients.
White-labeling can help you broaden your offerings based on client needs and market demand. If you need to visualize reports for a client and you don't really do that as an agency, Whatagraph's white-labeling might be an option. It's just an example, but you get the idea.
Pulling in more clients
When you start providing a wider range of services, you can start meeting the market's demand. If you didn't previously offer a service or product, but now you can white-label and offer it, you've just entered into an entirely different sector to compete for clients.
Finally, you can start pulling in clients that need a one-stop-shop to get full service.
Brand, brand, brand
If you're going to start offering more services, you don't want to be selling some other brands' stuff. What's the alternative here? You either don't do this at all or, that's right – you use white-label.
It's a way to expand the portfolio of what you offer and build up your brand's trust. The more people trust your brand, the more people find out about it. The more people find out about it, the more potential clients come your way.
White-label vs. private-label
Often white-label and private-label are used as one and the same. But, white-labeling is when the seller removes the original branding for a product or service and replaces it with their own.
Private-label, on the other hand, is more commonly used amongst common goods. White-label is generally more widely used within the software sector. But, both terms refer to a seller rebranding the original product or service to sell it under their own branding.
Is this even legal?
White-labeling is perfectly legal as long as the providing company openly allows for white-labeling their products or services.
Now, if you start photoshopping labels of products that don't really offer white-labeling as an option, there may be some legal complications involved. Otherwise, you should be fine.