White labeling is a legal process that allows a company to sell a product or service to another company who can in turn rebrand and sell the item under their company brand. Many industries have utilized this process, supermarkets have often purchased products, rebranded with the store label and sold it to its customers at a lesser price. The same has been done for software and digital marketing services.
Benefits of White Label Branding
Some of the benefits white label branding are:
- Time and money is saved
- Customer loyalty is strengthened
- Building and strengthening brand credibility.
Many marketing agencies and small business enjoy the benefits of white label branding when it comes to reporting and digital marketing services. Their brand is seen on reports and logins that are sent to their clients, this increases their brand awareness and builds trust and creates a credibility with their clients. They save time and resources from utilizing white label services allowing them time to focus on building long lasting customer relationships.
White label branding gives quicker solutions. It can spare your business valuable time and cash by making use of the already created items. It additionally enables you to keep doing what you are good at being inventive and promoting your brand.
For the producers and services givers, it can be very beneficial to get into white label connections for a couple of reasons. You don't need to invest so much energy or cash promoting your own brand since your prosperity lays on the shoulders of your partners. You get the opportunity to invest all of your energy doing what you are best at while receiving requests and projects you would not afford without involving anyone else.
Disadvantages of White Label Branding
Some of the disadvantages of White Label Branding are:
- Costing and Pricing
- Credibility of the Brand
- The successful launch of the product and all its merit is usually associated with the seller’s brand.
Many digital marketing agencies have stated that they do not wish to profit from third party software and that their main goal is to have an effective reporting system for clients, however some agencies use white label to up charge the product. This sort of pricing issue cause great strain on a client relationship once they discover that the software is available at a much lower cost. The credibility of the brand can swing in both directions. It is known that marketing agencies, spend a lot of time and money into researching the best third party software tools for its clients. These brand are highly trusted throughout the markets and as such markets will be confident enough o display the SaaS that they’re using. Why hide the fact that your agency uses on the nest for their clients? White Label Branding has a wide range of benefits and disadvantages, make the best choice for your business today.