For many a new brand, a lot of the cost-benefit analysis gets weighed down by elements like manufacturing and development costs, which are both very time-consuming and costly with little return on investment throughout the process. So, more and more brands are finding that the quickest, most efficient, and even the most effective way to get into the market is by utilizing a white label product, white label platform, and the like. So, what exactly does it mean to use a white label for your business, and what are the pros and cons of the approach?
How a White Label Product Works
A white label product is essentially as the name suggests: it’s a product being sold by a business without anything on the label, allowing another business to put on all of their branding and specifications. The third-party develops or manufactures the white label product, then the brand is able to brand and update the product, making the new product look as though it’s wholly created by the brand. The process is aimed at saving businesses time and money that would otherwise be pumped into costly development processes that may not be able to achieve the same product quality as a white label solution. With the old saying “time is money” hanging over many businesses, the strategy can be to get a white label manufacturer, establish the business and branding, and then look to expand and innovate later. In the digital space, a business that wants to offer a new platform online swiftly can turn to a white label developer. For example, in the ever-growing iGaming industry, emerging gambling sites can tap a white label gambling solution to quickly get up and running. Solutions such as this one promise to deliver over 10,000 casino games and 50,000 monthly live sports events through the sportsbook, which can then be customized with different front-end templates. In the fashion industry, a business could request that their branding and designs are printed onto plain cotton shirts rather than manufacture the shirts themselves.
Pros and Cons of White Labelling
Efficiency, cost-effectiveness, and supplementary options are all powerful selling points of going for a white label solution. You can avoid the high upfront development costs and get the business and brand out there quickly. This way, you have more time to focus on the other elements, such as marketing, making connections with stores, and refining the approach of your website. White labels can also be very useful for branded merchandise to help get your name out there – such as by printing shirts, bags, and even stress toys. The flip side would be that you’ve got less control over the end product. If you do decide to utilize a white label product, you’ll certainly want to put in the work to make your product distinct from the others using the same white label. There are many benefits for business owners when it comes to using a white label solution, with speed and cost-saving being the headline buffs. That said, white labeling isn’t suited to all, so weigh up the pros and cons carefully before diving in.