A lot of the branded products and services floating around today’s marketplaces are more similar than you might think. In fact, underneath the brand, many of them are the exact same. This is called white-labeling: taking a product or service and reselling it under multiple brands. For example, much of the bread that you buy at the store actually comes from the same place, even though it’s sold under different labels and at different prices. Likewise, digital services such as hosting or SEO often come from the same source. These are just a couple of examples of white-label marketing.
White-labeling can be a cost-effective way for small online businesses to scale quickly since it lets them offer services to their clients without also having to invest in infrastructure, maintenance, and support. The best part is that these services appear as if they’re coming from your company. You even get to put your logo on them. The following are a few ways in which offering white-label digital services can impact your online business.
Scale Quickly
A major advantage of white labeling is being able to scale quickly. You don’t have to build your services from scratch. You can begin offering a wide range of trusted and well-supported services from the beginning. What’s more, you can sell as many as you like since you don’t have to worry about whether or not you have the resources to support new customers. Then, as your business grows, you can decide whether to increase your profit margins by investing in the resources you need to build your own digital product.
Agility
Outsourcing the services you offer allows you to operate with fewer employees and focus your time on developing your business. It also decreases your liability. All of this leaves you with the flexibility to pivot your business without worrying about lost investment or continually hiring/firing employees to meet the changing needs of your company.
Profitability
White label services reduce overhead. That, less liability, and fewer employees, means more money for you or more capital to reinvest in your business. You can also save on hiring and training costs, and if you don’t need those services for a little while, you don’t have a lot of time wasted by employees.
Considerations
Before you outsource, make sure that the company you’re using knows the ins and outs of your area of expertise, that they understand the market you are targeting, that they work in the same time zone as you, and that they have enough experience in the field.
Resources