If you are into digital marketing, you must have heard the term white label marketing. It is quite an old form of marketing that has evolved. With a shift to digital marketing from traditional marketing, white label marketing has shifted too. What is white label marketing and how it can benefit your business, let’s find out.
What is White Label Marketing?
White label marketing or white labeling is the process of rebranding other company’s products and selling them as your own legally. This is a legal business and marketing model where the manufacturer of the product allows you to rebrand its products and sell them with your own brand name.
Here is how it works:
So, you’ll take a product, rebrand it, and sell it to your customers. Your clients will never know if you developed the product or simply reselling it.
White label marketing saves you from developing a product. You can take a readymade product and start marketing and selling it to your customers.
What is a White Label Product?
White label product is the product or service that you rebrand and resell to your customers. When you are planning to switch to white label marketing, you’ll need to hunt for white label products from different manufacturers.
You can rebrand and market multiple white label products from different manufacturers. There aren’t any restrictions.
White Label vs. Private Label Marketing
White label is often used mixed with private label marketing. Both white and private labeling are related but different models.
Private label products are manufactured exclusively for a single seller. These are custom-created products that you can modify as per your requirements. You can still rebrand and resell it as your own product. However, the same product won’t be sold to others by the manufacturer.
This isn’t the case with white labeling. You can’t customize a white label product and it isn’t exclusive. A single product is rebranded by several sellers. So, a lot of sellers might end up selling the same product with their own brand names.
When branding and differentiation aren’t key concerns, you can go with white labeling. For example, if you run a social media marketing agency. You can use different white label products to serve your clients. This includes white label reporting software, editorial calendar software, social media analytics tools, and more.
This will give your clients complete branded reports that will improve your agency’s credibility.
White Label Marketing Benefits
White labeling offers a perfect solution to both parties. The manufacturer generates sales while resellers don’t have to go through the complex process of product development. It is a perfect win-win model but let’s see how resellers benefit from white label marketing:
One of the key benefits of white label marketing is that it helps you save resources. It is a perfect approach to cost reduction and efficiency. You’ll get a ready-to-use product with zero fixed and overhead costs. It also saves labor cost, salaries, and admin expenses.
Perhaps the most important resource that you save with a white label product is time. If you need a product, you can get it today. You can almost instantly. You don’t have to spend any resources on product ideation, brainstorming, development, and other processes.
Here is an example:
If you want to start offering SEO services to your clients, you can use this white label product and get started right away. No need to develop a tool. No need to spend money and time reinventing the wheel.
This makes white label products a real bargain.
2. Product Expansion
Do you want to offer additional products to your existing clients? If so, white labeling makes it super-easy. Product expansion isn’t a problem.
If your agency is offering SEO services to the clients, you can grab a landing page builder white label product like this:
This is the fastest way to offer additional services and products to your customers in a different target market. Product expansion, in the absence of, white label marketing can turn out to be a never-ending process.
3. Brand Credibility
The beauty of white label products is that you can brand them. Think of a reporting tool for your marketing agency. You can send weekly reports to your clients in simple templates and files with someone else’s branding. Or you can use a white label reporting software and have all the reports with your agency’s name:
Makes a huge difference, right?
White labeling improves your brand credibility and trust.
4. Ease of Doing Business
As a business, you want to focus on the core product you offer and the strategic aspects of your business. White label marketing lets you do this precisely.
Leave product management, customer support, product updates, and other related tasks to the white label manufacturer while you can focus on key aspects of your business.
This makes doing business a whole lot easier because product manufacturers offer all the services related to the white label product including customer support, technical support, product updates, etc. You don’t have to do any of this.
5. Outperform Competitors
Do you want to stay a step ahead of your competitors? Start using white label products.
Not only will you increase retention rate, AOV, and revenue but you’ll have a competitor advantage. White label products are available to everyone so it doesn’t mean your competitors can’t offer the same products. But the sooner you start, the better.
It requires a good time to test different products and find the ones that completely align with your business. It takes time. In any case, it is a perfect way to outperform your competitors by offering additional products to your customers.
Is White Label Marketing a Must for Your Business?
If you are running a marketing agency, there are a lot of ways you can use white labeling to grow your agency quickly. You already have the clients, you just need to offer them additional products and services. It doesn’t cost you a lot.
Start with a single white label product. Test it and see the response. If it works, move to the next. And so on. Your core product will still be there and this is what makes white labeling worth giving a try.
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