WHITE LABELING


by  Pola Tustanowska
May 13 2021, 12:00pm


Have you ever wondered who are the silent heroes of many entrepreneurs?
The history of white labeling

Although white-labeling is nothing new in business and the concept seems to be quite simple, the opportunities that come with it are widely underestimated. The simplest definition of white label product is this: goods or services produced or provided by one company, then acquired by another one and sold under their own brand name. Such a business strategy originating from physical goods has lately been commonly used in the tech industry.

Interestingly, the first time the concept of white label appeared was in the music industry. The vinyl records with plain white labels were kind of samples or promo pressings that were given to DJs for marketing purposes, gather opinions, and gauge the number of copies needed to be produced. It was aimed at assessing the quality of the music by the audience without revealing the author, which could impose a certain idea of the piece in advance.

Why waste time reinventing the wheel when we can white-label?

White label software in the tech industry is relatively new but the concept remains the same: software or other development services are sold to another company without revealing the producer’s brand.

Save your time and money with SaaS
When you have a promising idea for your business, you run a startup or a small business, white-label may turn to be a much more affordable and effective solution than hiring staff and spending a fortune on the development of your own software. The so-called SaaS white label model is the solution to kick-off your business and may bring you considerable benefits.
In substance, the SaaS is a cloud-based software “leased” by a company instead of developing their own product or tool. It can be anything from programming products such as website builders or web design programs to management or marketing software tools such as SEO, Social Media Management, or Lead generation tools.
Instead of wasting time and money on a fast-changing and complex development process, you can focus on your business and your marketing strategy. It takes months to build your own software, even if you have your own team of engineers. Working on the product discovery, planning phase, building, deploying, and testing (a lot of testing!) demands hundreds of hours. Using a white label allows you to shift your energy and resources to planning your business, marketing strategy, and brand development. This promising solution will definitely accelerate the growth of your business.

Leave it to the professionals
Nevertheless, there is a big chance that your idea for a business/startup or an already existing company is demonstrating a cutting-edge approach that needs a specially customized solution that is simply not available on the market yet. A unique idea surely needs professional development from scratch, which is a complex process and should be done by experts. White label services can be the best option here as well. In this case, it’s worth considering the third-party developers. Contrary to using the SaaS white label product, you can hire a software house that prepares the tailor-made solution for your business. It is way much more convenient and affordable than hiring in-house developers. Through White Label development services the company works backstage anonymously while letting you take all the credit for the developed products. Usually, the cooperation starts from signing a special agreement - NDA (Non-Disclosure Agreement) between you and the agency. It assures that all built products, source code, and IP rights belong to the client. The development team doesn’t disclose any information about clients unless it is clearly agreed upon first.

Instant support: an integrated team
The white-label approach assumes that the producer is an expert in building the product you need. So hiring the entire team instead of in-house staff reduces the cost and time spent on training or HR, and moreover, reduces the risks of hiring unsuitable devs. You pay only for pure quality and expertise. The white-label team that is already integrated and experienced can be also a great advisor - they understand the importance of quality and during the development process can have a holistic approach, taking into account the issues that only engineers can predict. A good company can provide you with product discovery, in which you set up the goals together and deeply understand your needs and the product vision. You create a thought-out MVP, which is always up to date with the latest technologies and is meticulously tested, numerous times.

The quality is essential
Nowadays, when the entire world turns to digitalization, a good web platform is the ground for every successful business. No matter what industry you are involved in, the management interior system, website, eCommerce, support for delivery, marketing, and communication are all very important. Instead of wasting your time and energy on dealing with these new challenges, perhaps one of the white-label solutions is the best prescription for your new e-reality.