What Is a White Label Product?

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To understand White Labelling better, let’s take a look at a practical example: Company A produces games and sells them to company B without any trademark to the company. Company B then places its own trademark on the games, then goes ahead and offers the games to the end-user.

For the White Labeling process to work, the key factor is anonymity because the final consumer doesn’t know who the producer or the service provider is.

One example of white labelling is VulkanVegas. The online casino brand has created a lot of White label projects through its anonymous affiliates. Essentially, the White Label marketing strategy uses the power of the brand as the main building blocks to the success of sales. Moreover, the White Label approach also allows you to offer your clients products that you would otherwise have never been able to bid to your customers with fewer investments.

Classes of White Label

There are three main categories of White Label, and they are:

  • B2B (Busines to Business): Company products or services supplied to a reseller who sells them to the consumers.
  • B2C (Business to Consumer): Here, the products or services are sold directly from the company to the end-users.
  • SaaS (Software as a Service): A licensed subscription to rebrandable software where the resellers claim all rights to the software, then sell it to other users. Most casinos fall into this group; this is where they acquire technology and use it to sell their virtual casino gaming services.

White Label vs. Private Label

Private label is not a subset of White Label; they are different labels. Private label means the label is owned by the company itself, but the label is used as a tool for the affiliated company. Take e-commerce platforms like Amazon, for instance, when brands put their logos to the range of commodities that are sold on Amazon. For example, you will find the Sony PlayStation console, Sony flat-screen TV and other goods with the Sony name. This means Sony is a private label inside the Amazon platform.

What’s unique about private labels is that the brand owner is in control of the production process and has a more direct hand in the processes that push the product to the customer.

Pros and Cons of White Labels

White Label Projects come with plenty of benefits such as:

  • The final products are usually of high quality.
  • Low investment needed compared to creating a product from scratch.
  • No research and development costs.
  • Few technical expertise needed.
  • You can easily take advantage of the work of experts.

On the other side of the coin, White Labelling also comes with some demerits, which include:

  • Little or no control over the creation process.
  • White label projects have less value than distinctive products and services.
  • If there is a similar product on the market, there will be strong competition.

White Labelling Marketing Strategies

Starting a White Label product is very simple, but making it profitable is super complicated. Given that creation of the product is super easy, the key to success is not having unique products but having a unique way of selling them. You can adopt ways of marketing on social media since the internet gives you the chance to get to reach thousands of people.

When you are in a space offering a product that’s already being sold to thousands of other sellers, the key to success is to improve what’s already being offered. So, what you can do to get an edge over the competition is:

  • Develop a social value p
  • Clearly define your brand goals.
  • Present yourself very nicely with great user-interfaces.
  • Do not emulate the big successful brands already in the market.
  • Take advantage of collaborations with prominent partners.
  • Create an informative content marketing strategy of the service more than of sales.

How to Brand Products and Services

Before branding the White label products, there are a couple of things that you need to consider for higher chances of success. First, you should analyze your competitors and understand their strong points and find out ways that you can be better. You must also study your potential customers carefully and understand their needs so that you can offer fast and top-notch service to them.

Final Thoughts – Is White Label Profitable?

White label is a great way of creating your products and services with less time and monetary investments. Better yet, this approach offers you an excellent opportunity of building your brand behind excellent goods and services. Nevertheless, just like other strategies, you must be ready for the drawbacks involved. While it’s a bit difficult to build unique products with this business model, it can grow to something very profitable in the long run.

 

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