What Is White Labeling and What Are Its Benefits?
White labeling can be a very lucrative business—both for white label companies and for white label partners. What does it mean—and why would anyone use white label products or services?
In this article, we’re taking a brief, but comprehensive look at white labeling as a viable and beneficial option for a wide range of companies, especially those starting an agency business.
White labeling definition
White labeling is the practice of using a product/service created by a company, and applying another company’s branding to it. The goal of white labeling is to allow the purchasing company to display its own identity on a product or service that was not originally produced by them. It enables companies to get started quickly with a branded solution without having to invest in long development or production processes.
It is worth mentioning that white labeling and private labeling are two distinct terms, although they are often used as a synonym. White label companies will usually make generic products or provide non-branded services, which are then sold by different companies.
However, private label products are sold exclusively by one company. For example, if you buy a product that’s only sold on Amazon (and manufactured by it), that would be a private label.
What are white label services and products?
White labeling can be used by all sorts of products, from software and technology to consumer packaged goods (CPG). It is most commonly used for web-hosting companies, marketing automation tools, enterprise software applications, headless architecture, and eCommerce platforms. The benefits of white label make it a viable option for anything that can be produced by one company and sold by another.
White labeling allows everyone to provide high-quality services and products without the overhead costs associated with them.
For those who build white label solutions, the advantages include:
Increased brand exposure and recognition
The option to reach more customers who would’ve otherwise built their own solution
More likelihood that enterprise-level companies buy their products (which can provide a higher ROI and more revenue for the organization selling the white label service or product.)
For those who buy white label solutions and brand them as their own, the advantages include:
The ability to create and deliver a product to the market quickly
Reduced costs associated with developing and maintaining their own products from scratch
Reduced risk, since they can assess the quality of the white label product before making a purchase decision
A stronger brand, which, in turn, can increase their trustworthiness and reputation
If going through a rebranding process that aims to offer more services, white labeling can help you decrease your go-to-market (GTM) timeline
Grow your industry knowledge
All in all, white label products and services can be a win-win for everyone: brands, white label providers, and end customers.
3 white label services examples
Although very common in the software industry, white label isn’t a term that belongs exclusively to it. Tangible products, as well as services, can be white labelled. Essentially, if one product can be made by one company and rebranded by another, it can also be white labeled.
Here are some examples of what you can white label:
SEO (Search Engine Optimization)
White label SEO services are usually offered to agencies to help other companies boost their ranking on search engines. When an agency doesn’t have the capacity to provide those themselves, they can use white labeled SEO services instead.
For instance, if you are an online marketing agency and all of your SEO pros are busy working on other projects, but a client requests you to help them with their SEO, you can consider partnering up with a white label provider. This will allow a niche SEO agency to sell their services under another brand’s name, while the customer-facing agency doesn’t have to invest in hiring and training new SEOs.
White label digital marketing services and white label social media agencies are also quite common because the demand for such skills is at an all-time high. Plus, white label versions like the ones mentioned here can also allow a lot of people to start a business easily, with minimum risks.
White label content writing services work similarly to SEO white label. Essentially, an agency that doesn’t have the capacity (or the focus) to provide content writing services will outsource the task to another company—a white label content writing agency.
For instance, if you have an SEO agency and you need to help your clients with content production, you might choose a white label content agency to help you deliver all the needed content.
Google Business Profile Management
Google Business Profile management can be complex. But with a white label provider, it’s much easier to manage profiles on Google My Business and ensure that they are optimized for maximum visibility and conversions. Some agencies offer this service to their customers by using specialized Google Business Profile management white label services.
It is worth mentioning that in all of these examples, the white label company will not act as an external provider, but become an integral part of the team for the duration of the project. White labeling aims to make the process as seamless and hassle-free for the client as possible. The end customer should never feel like they are handed off two another agency, but by a single entity that manages a thorough, well-executed process.
Frequently asked questions about white labeling
What does it mean to white label something?
When you white label something, you make it easy for other brands to acquire it and use it as part of their own offer. For example, if you have a white label SaaS that helps collect information about leads, a digital marketing agency could buy that from you and use it for their customers, as if it was an in-house product. They can add their brand name, customize the colors, and make the white label software an integral part of their agency’s deal with their customers.
Is white labeling ethical?
Yes, white labeling is ethical. It is a practice that gives businesses the opportunity to access quality products or services without having to reinvent the wheel. Moreover, it allows them to offer better services to their customers, while still retaining control over the process.
Is white labeling profitable?
Done right, white-labeling can be profitable. It is a way for businesses to offer services that they don’t have the resources or expertise to provide in-house. By outsourcing, they can keep their customers happy without over-exerting their teams or dealing with the costs associated with training and hiring new staff.
What is a white label client?
A white label client is a customer who buys products or services from another company and rebrands them as their own. The client can then make use of those services as if they were their own to increase their customer satisfaction, decrease their payroll costs, and improve their bottom line.