The white-label solution or technology is a ready-made licensed product developed by a company (technology partner) and is rebranded by another one (publisher), and resell it as their own. The whole process looks quite simple, but a white label means a lot from a business standpoint.
It is becoming increasingly competitive in today’s market, and you can’t simply rest on your content to do all talking. You will need unique products that can make you stand out from the competition, especially in the case of enterprise white label solutions. However, this requires unprecedented efforts and time from your end even if you have the right recipe in your hands. Not to mention all the knowledge you need to process from your client’s perspective to define your product’s end goals.
From my experience, I can say it is quite a challenge for a publisher to develop such a specialized enterprise product for their clients even if they have in-house capabilities. We will discuss these challenges throughout this article in more detail.
As publishers, you often try to take complete ownership of everything they execute and deliver. After all, it is a competitive business and a lot is at stake. And this is where a white label solution can seamlessly fit in your business strategy.
Unlike a franchise, you can create a special product and launch it as your own and start winning clients by addressing their specific needs as a solution provider. This is not it, by adding your brand behind a white label product, you are bolstering your brand presence.
However, coming up with a specific customized solution from scratch leads to failure. It may not always be the case, but here are the main reasons why it doesn’t pay off much in the long run.
- You make the same mistakes in due course of development, which could have been avoided by learning from other’s journey.
- Since you are working outside your domain expertise, you tend to get bogged down by time-consuming issues that arise during the process, which in turn slows you down in reaching the market at the right time.
- Invest money in solutions that already exist in the market but in other formats.
- You are frequently distracted away from focusing on your area of expertise at the expense of creating a white label solution.
As you can see here, these common mistakes are avoidable if you opt for a white label solution, instead of diverting precious resources away from your key focus areas.
The most significant benefit of a white label solution and product is that they can be custom-built to suit the requirements of the reseller. This way, a publisher who owns this product can generate revenue without investing in the research and development of the product.
Meanwhile, the vendor can focus on finding cost-effective ways to make the product without concern for the product’s marketing.
Now you may ask what is in it for the original manufacturer to sell their solutions to a reseller? Well, they don’t worry about marketing their products and can solely focus on finding cost-effective ways to make a better product/solution.
It’s a win-win solution for both you and the vendor.
Let me explain it to you with an example. As a specialized publisher, you often govern subject matter expertise in specific fields. Your end clients are operating in these niche domains, and they depend on your subscription (content) to keep themselves updated about the industry. You can partner with a technology company that has the required expertise and understanding of the industry. The technology company should be able to give a technological framework to publisher’s content is such way that it can be sold as a full-fledged product.
However, to further make a strong case for white label solutions, read on the following points:
- Easy to integrate and brand: A great white label solution can quickly integrate with your gamut of business offerings. They are generally ready-to-deliver and are easy to customize and brand. A reseller doesn’t need to invest in R&D to recreate the solution. You can quickly bring it to the market and deliver it to the end customer.
- Let customers choose you easily: Why to invest time and efforts when you can readily deliver the solution your customers are looking for? While you are researching and developing your product, your customers will be forced to search for alternate solutions.
- Saves Time and Money: Even if you make it through all the developmental level hurdles, you will face the daunting task of marketing it. Not to mention all the effort required to test the architecture, design, build, and QA. And due to time constraints, you may unintentionally cut corners. If you are looking to get to the market speedily, it only makes sense to invest in a ready-made white label solution.
- Play to your strengths. Quite often, companies try to put together a solution which is way outside their core business area and it puts much pressure on the internal teams. Instead of reinventing the wheel, it is wise to go with a white label solution which can be readily packaged and delivered. It allows you not to go through the same learning curve and mistakes of others. Of course, due diligence is required to analyze how effective the solution is and to what extent does it helps you realize your business goals.
Conclusion
Your customers are looking for a quick and straight forward solution. It requires rapid adaptation to customers’ needs and meeting their expectations. It means you have very little time to come up with a new strategy and end-to-end execution. White label solution offers you a more straightforward way of bolstering your brand image without much trouble so that you can focus on your core business areas.