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June 15, 2022
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White-label software is a type of software that is made to be sold by another company under their own brand name. White label software is also referred to as private label software, OEM software, or branded software. The process of white labeling involves creating a new brand and marketing the product with that brand name instead of the vendor’s. The result is that the end user does not know that they are buying an unbranded version of a particular piece of software. We have compiled a list of benefits and challenges of white labeling. If you're thinking about going down this path, read on to find out more.
What is White Label Software?
White label software is software that is branded under a different company than the original developer. The software can come in various packages like SaaS, subscriptions, etc. Although white label software often refers to business software, other industries like marketing and healthcare also use white labeling. For example, white labeling in marketing would mean that you create a product like an email autoresponder or an ebook and then have it rebranded with your own name or logo. In healthcare, white labeling typically refers to repackaging medical supplies or equipment.
Why use White Label Software?
There are many reasons to use white label software. In addition to saving money on software licensing fees by using a pre-existing software product, other reasons include: - More efficient processes - With more and more business moving online, white labeling existing software products can accelerate your growth and reduce operational costs. - More seamless customer experience - Using white label software allows you to create a customized user experience for your customers. This can make them more loyal and reduce customer service costs by making things more self-service. - Brand recognition - Using white label software branded with your company name allows you to quickly build recognition in your industry. It’s also an easy way to differentiate your company from your competitors. - Scalability - White labeling a software product allows you to scale your business with a product built and proven by another company. For example, if you decide to go SaaS, you can quickly scale your customer base without having to build that feature yourself.
Challenges of White Label Software
As with all things, there are challenges to white labeling software. Before deciding to go this route, make sure you are aware of the following challenges: - Lack of control - White labeling software puts you at the mercy of the original vendor. If they go out of business, or if there’s a critical security breach in their system, you’re affected as well. - Lack of customization - When you buy software that you’ve white labeled, you may not be able to customize it. This can make it difficult to integrate with your other systems or implement your company’s unique processes. - Lack of support - Unless you pay extra for it, you may not get full support from the vendor if something goes wrong with the software. - Lack of long-term value - Over time, the value of software that you white-labeled will decrease as customers associate the product with your brand. You will have to spend time and money to re-brand it.
Pros of white label software
White labeling a pre-existing software product allows you to quickly scale your business with proven technology. This can help you: - Reduce operational costs - Use software that has already been tested and proven to work. This can help lower costs, especially if you scale your business to a larger user base. - Accelerate your growth - Investing in software that is more scalable can help you grow your business more quickly. This will allow you to focus on growing your business and not building the technology from scratch. - Create a seamless customer experience - Create a branded user experience for your customers that is specific to your business.
Key takeaway
White labeling software can help you save money on licensing fees and accelerate your growth by using proven technology. However, remember that you are at the mercy of the original vendor when you white label software. If you decide to go this route, make sure to choose software that is scalable and proven to work. And, make sure the vendor of the software will allow you to white label the product with your own branding.
