White Labeling is concept used where the company develops their products and services and sells it to third party company to brand and sell as their own. This is similar to building a car and selling them to another company and label them as their own and sell it themselves. The name for this came from creating a product with no branding, sticking an empty label on it and delivering it to another company to fill in whatever is required by them.
So why is this the company allowing its product to be sold by another under their branding?
The answer for this lies in the branding and marketing strategy. The major reason for this being that the company is good at creating a revolutionary or exclusive product but nor good at selling and marketing them. The best example for this lies in the mobile application development. Here there might be a firm who is extensive in creating apps but not the ability to network or sell it. Finding someone who is good at both these aspects is rare. Branding takes a good amount of money,time, effort and dedication. Establishing a brand among the ones who are already in a race is quite a difficult task, whereas giving your services to these would increase your business.
Digital White Label Marketing helps your product/service to get exposed among the number of brands which is quite larger than you think of reaching. These firms have relationships with their regular clients on a frequent basis which could pass on to you, trust is a timely investment for these firms and this could have its effects on your brand as well. Finally it is quite important to pick up an agency which is quite active in social medias and having an effective online marketing campaign.
So where does cons lie?
It is ensured that a flawless product is created by you but that does not become your own. Remember after the product/service is launched it no longer belongs to you. This could be a great financial and time compensation but the brand of yours does not get its recognition and none knows about you. This is because there is no trace of your signature or your name to signify your work, the only option provided is that you are building a good relationship with whomever you’re white labeling with.
White Labeling is a profitable and smooth going one until your brand becomes irreplaceable. Once a competitor arises these firms would not think twice to replace your product/service with the other and this could drag you back from where you have come from. On the contrary the effectiveness of the white labeling is an erudite one but depends on the long term goals of you and your company.