Anyone who has spent time in the world of online working has probably come across something known as a white label product or service.
Different people have different reactions to white labeling, however, it has definitely earned its place in the online business world.
What is White Labeling?
A white label provider is a company that sells its services or products to its customers, which they can in turn sell to their own customers under their own brand.
In effect, white labeling, also known as white label branding, is where a service or product is created by one company and sold by another company who makes it appear as their own.
Why Do Most Businesses Use White Label Products & Services?
Many people choose to use white label services and products due to time and funding restraints.
White labeling is especially useful for entrepreneurs and individuals who are looking to get started with their own online business, but lack the manpower to run a full business by themselves.
One example of this would be a writer who decides to rebrand a white label web design business.
This is a great set up for the writer as they are actually outsourcing the web design work, and are just filling the content writing needs on their own. In the end, it appears as though they are running a full scale business, which they kind of are, while they eliminate the need for them to manage every single task.
What are the Pros & Cons of White Labeling?
As with any good idea, white labeling has its pros and cons. On one hand, the product has already been created, which saves a good deal of time and money. In addition, the white label company doesn’t have to worry about finding the most effective way to market their products and services either.
White Labeling Pros
- White label businesses do not have to worry about branding and marketing their own products.
- Being a white label company can open you up to amazing clients that you would have otherwise never found.
- As a white label company, you get to focus on what your passion really is. You get to work on what you’re good at instead of focusing on things that you have little experience with.
White Labeling Cons
- With a white label company, it’s easy to lose control of the project. Those who are selling and marketing the product can tell the company what they want, when they want it, and so forth, which can drastically narrow the freedoms.
- You don’t get the credit you deserve. You can tell anyone about the work you do behind the scenes because that is how you sell your product or services, however, you also don’t get any of the credit on a job well done either.
So, there are some definite strong points to going into the white label industry, as well as some downers.
The key is having the creativity to utilize this market area to your advantage.
White label companies are not just limited to content, but practically any product or service that you can imagine. Many companies do white label Crowd Content’s content writing services, so be sure to consider if they could add value for your clients.
