In today’s article, we’re talking about white-label development and discussing why businesses choose white label solutions.
In business, the term “white label” refers to a product or service that is produced by one company and then rebranded and sold by another company. White label products and services are usually sold at a lower price point than the company’s own branded products and services.
White-label development is the creation of a product or service that can be rebranded and sold by another company.
Businesses choose white-label solutions because they offer a ready-made product or service. This ready-made service can be quickly and easily implemented into the business’s existing operations. Or, quickly resold or remarketed to a new segment. White-label solutions can save businesses time and money by avoiding the need to develop their own products or services from scratch.
As many know, and McKinsey reports, “Forty-six percent of… [businesses] report an
increase in redeploying talent at their organizations” in 2021. “Skill-building efforts have focused on ‘softer’ and advanced cognitive skills…” notes the McKinsey 2021 Global Survey.
A reduced focus on ‘technical’ skillsets
“More than half of respondents report a focus on developing leadership, critical thinking and decision-making, and project management skills.”
Many organizations are struggling to offer the essential services their clients expect.
What is white label development?
White label development is the process of developing a product (or a service) that can be rebranded and sold by another company.
White label products and services are often used in business-to-business (B2B) relationships. This often takes place where one company will develop a product or service and then sell it to another company, which will then add its own branding and sell it to customers.
White-label development is the development of a product or service by one company (the provider) that is then rebranded and sold by another company (the reseller).
White label web development vs white label software development
The term “white label development” can refer to either white label web development or white label software development.
For Web Development
White label web development is the process of developing a website that can be rebranded and sold by another company. It is, generally speaking, the process of developing a website for another company.
This could include developing informational websites, ecommerce websites, developing white-label WordPress websites, or really any web property of any kind.
Often used by web design agencies, white label websites enable creative agencies that want to offer a complete website solution to their clients but do not want to have to develop the website from scratch.
For Software Development
Let’s address software, for a moment. White label software development is the process of developing software that can be rebranded and sold by another company.
White label software is often used by software companies (and other organizations) who want to offer a complete software solution to their clients but do not want to (or, aren’t able to) develop the software from scratch or inhouse.
What are the benefits of white-label development?
White-label development is the outsourcing of software dev work to third-party vendors. The goal is to save on costs by using someone else’s expertise and resources.
There are a few key benefits to white label dev solutions:
- Lower costs: You don’t have to invest in the infrastructure and personnel required to develop the software yourself.
- You can focus on your core competencies and leave the software development to the experts.
- It allows companies to outsource the development of a website or app, which can save time and money.
- Access to skills and resources: You can tap into a pool of talent and resources that you may not have access to otherwise.
- You can tap into a pool of talent and resources that you may not have access to otherwise.
- Faster delivery: speed up development!
- Can be a way to enter into a new market or expand into a new market segment.
- It can help to build a brand or reputation for a company.
- Sometimes can provide a company with a ready-made service that they can sell as their own.
Why do businesses choose white label solutions?
There are many reasons why companies might choose to white label a product or service. In some cases, it may be because the company does not have the resources or expertise to develop the product or service itself. In other cases, it may be because the company wants to offer a product or service to its customers without having to develop it from scratch.
According to Drew Gainor, “It allows you to focus on your business’s core competency.” Gainor explains: “In many cases, the solutions that companies hope to build themselves fall far outside of their areas of expertise. It’s not smart to stretch your resources to do something that doesn’t fit within your core competencies.”
Gainor, owner at Seat Scouts in Raleigh, NC, knows well the difficulties of building yourself, and trusts in the value of a trusted partner. “Prepackaged solutions provide an opportunity to trust the experts in the specific space you are focused on, and avoid making the same mistakes that others have made before you.”
A popular choice. Private-label development is frequently pursued by businesses because it allows them to outsource the creation process and focus on other areas of their business. It can also be a cost-effective solution, as the provider can spread the cost of development across multiple clients.
Some businesses may also choose white-label solutions because they offer a high level of customization, which can be important for businesses that want to create a unique brand identity.
What are the challenges of white-label web and software development?
White labeling development is often a big success for most organization. However, there are also some challenges with white labelling that you need to be aware of.
Let’s take a look at some of the most common ones.
- There can be a loss of control over the deliverable.
- Some difficulties in ensuring the quality of the deliverables.
- Issues with branding–it can be difficult to translate brand values.
- There can be challenges in coordinating the development process across a divided team.