Source: White Label
As an entrepreneur, you might be spending a lot of time and effort finding new business opportunities.
But what if you could find a way to skyrocket your revenue without having to look for new customers?
What if you could increase your revenue without having to build your brand all over again?
The white label solution is one such way. With this strategy, you can piggyback on another brand’s product and services and provide them to your customers under your brand name.
Among the most popular and effective ways to rapidly develop your business, white label services will also help you earn extra revenue. While you focus on your core business, let our experts in white label services develop your technology and software solutions.
What Is The White Label Business Model?
The White Label business model is a type of outsourcing. As a rule, white label companies are not manufacturers but use the branding of their partners. This guarantees anonymity for both brands, but most importantly, the product gets sold, and both parties get their share of profit.
White label is a production of goods or services produced by one company but sold under another company’s brand. It is a standard business practice, especially in the software industry, where vendors sell their products to other companies and allow them to add their branding.
One of the most famous examples of white labeling is when retailers buy generic products from wholesalers and then rebrand them as their own. Other industries that use this practice include food and beverage, digital marketing, e-learning, education, event management, travel and tourism, financial services, etc.
Why Do Companies Invest In White Label Services?
White label service takes a central part in the strategy of many companies, as it allows them to increase their profits and present themselves as a reliable and trusted brand with an extensive range of products and services.
The main advantage of this business model is that it doesn’t require significant investments and high-risk actions. You can sell products without worrying about brand reputation, inventory or manufacturing process.
Source: White Label Products Sales 2021-2025
The white label concept allows you to add value to your brand, create additional revenue streams and generate more profit with little effort on your part.
What makes this business model so attractive is that you don’t have to invest in developing and marketing a product of your own. Your partner takes care of all that, allowing you to focus on what you do best – marketing and selling.
White label services can be offered by distributors, retailers, or manufacturers who want to broaden their commercial offer or look to improve their product range’s quality.
How Can White Label Services Skyrocket Your Revenue?
A white label solution allows you to host your brand on the solutions provided by other companies. This means you do not need to worry about security, scalability, maintenance, customer service, and the other myriad of tasks associated with running an online business.
There are many ways you can use white labeling for your business – here are some of the most common:
1. Co-branding
Did You Know That 81% Of Customers Are Loyal To Multiple Brands?
Co-branding is a great way to add value to your product and build loyalty with your customer base by bringing a complete solution to them. It refers to a partnership between two or more companies to create a single product or service.
So, don’t hesitate to establish new partnerships and keep your customers happy! A satisfied customer will remain loyal while increasing sales and brand awareness for both parties in the partnership.
A co-branded product or service gets its value from the strength of its branding partners. Partnerships can be mutually beneficial if the strengths of each partner complement the other’s weaknesses. This allows them to market a product more effectively than they could do independently.
The benefits of co-branding are multiple:
- Increase brand awareness
- Boost each other’s credibility and value proposition
- Expand reach to a broader audience by leveraging the other brand’s customer base
- Increase leads and conversions
2. Rebranding
Rebranding is a great way to make things your own. You can add your logo, color schemes, and other details to make it look like you created the product yourself. This is an excellent way to provide better customer service and keep them feeling as though you are fully integrated with their needs. 73% of customers love a brand because of its excellent customer service.
If you use a product like this, you will be able to offer a higher level of satisfaction to everyone you work with. We all know how much time and effort goes into branding a company and creating a unique product. It’s no easy feat! So, what a relief it must be to find out that you don’t always have to start from scratch.
Instead, you can find white label products already developed and need your stamp of approval to be added to your portfolio. This possibility is beneficial for new entrepreneurs who want to quickly get their business off the ground by tapping into an already established market.
3. Referral
Referral programs are an excellent way for service providers to get their brand to new customers and offer value to existing customers.
An excellent example of this is a web design agency that offers hosting services as part of its package. If they were to white label a hosting provider, they would be able to offer hosting as part of their package without worrying about managing the servers.
When a client refers your services to another client, you enjoy a consistent revenue stream. You can make this even more exciting with a referral program. You give incentives to the referring client whenever they make successful referrals. You can choose to offer a discount on their next purchase or any other incentive that is beneficial for both clients and your business.
4. White Label
With their branding and logo, retailers resell white label products and services, but the products or services themselves are sourced from a third party. The white label company maintains ownership over the design and production of the goods.
In simple terms, white labeling is a process through which another company rebrands a product or service from one company to make it appear as if it had made it. The process involves removing the original logo/branding of the product and replacing it with a new one, usually the name of the reselling company.
To understand why this is done, let’s take an example. You are running an eCommerce store selling clothes. This means that you have everything under control – your online store, the payment gateway integration, logistics, inventory management, etc. Now imagine if you could sell your products on a marketplace like Amazon or Flipkart as well! You get access to millions of new customers who are already looking for products like yours but don’t know your website exists.
That’s precisely what white label services help you achieve!
5. Hybrid White Label Sales
Hybrid white label sales are a great way to grow your business. With the ability to offer multiple services under your brand, you can expand your reach and increase revenue.
You get part of the revenue from selling their products without having to work on developing and manufacturing them yourself.
You don’t have to use only one model for selling white label products. You can use one or more of these models:
- Reseller model – A seller buys a product from a manufacturer and resells it under their brand name.
- Private label model – A seller uses a manufacturer’s products and creates their brand around them.
- Co-branding model – A seller works with a manufacturer and uses both parties’ names in the brand.
Conclusion
Take advantage of your knowledge and expertise, partner with a professional services provider, and reap the benefits of white label services for your business.
