How does White Label work
To understand how White Label works, it’s better to look at a simple example.
Company X produces the pans and sells it without any trademark to company Y, which then places its trademark, reselling the service to the end user. This is the simple scheme of the White Label product. The same can be done with services as well.
We can say that in the “White Labeling” process, the key fact is anonymity. The final customer doesn’t know who is the producer or service provider. Your customer will buy a quality product or get a good service without knowing who made it.
Famous White Label examples
As we have seen before, the business function is based on anonymity. That’s why we’re not always aware of who produces the product, we rely on the brand or its price.
Dollar Shave Club sells about one billion simple razors a year, without producing even one! Their strength lies in their sales strategy. Other companies produce the good and the Dollar Shave Club places their own logo on them to sell. It’s one of the most famous White Label product examples.
Travelpayouts affiliates have already created more than 35,000 White Label projects. There is example: https://whitelabel.travelpayouts.com/.
It’s clear that the power of the brand and the White Label marketing strategy are the main factors in sales success. At the same time, the White Label allows you to offer products that you would otherwise never have been able to offer to your users without high investments.
Types of White Label
There are mainly three categories of White Label:
- B2B: Products or services provided by one company to a reseller who resells it to the end user, another company.
- B2C: Products or services resold by a company and sold to the end user, consumer or person.
- SaaS: Software as a service. Subscription licensed rebrandable software where resellers claim the software as their own and sell it to customers.
Travelpayouts White Label applies to the last group. SaaS, where you can get a technology and use it to sell flights or hotels.
We can also separate all White Labels for two big groups:- products and services. We briefly talked about them above, and you can find more detailed information below.
The White Label service means that you are providing somebody else’s service for the end customer, but in the customer’s mind, they bought the service from you. Travelpayouts White Label belongs to this group.
We already wrote how to create a White Label website, where we described how the Travelpayouts White Label works.
Another example of White Label service is when you offer translation services for the customer, but provide it through a third party agency. The agency would translate for you, but customer will get the final result from you and think that you are the provider.
In many cases, creating a product from scratch is consuming both in terms of time and money. Exploiting the products in White Label is therefore a necessity and a great opportunity. With product White Label, you already have basically everything to start.
For example, you can find great quality pens without any label, or you could buy the headphones from China and place your own logo on it. This all is a product “white labeling”. You take the no-name goods, give them name of your brand and sell them as yours one.
We know, that many people mistake the White Label projects and Private Labels. Let’s look what is the difference and what is better.
Private Label vs. White Label
Private Label is not a type of White Label. Private Label means it’s your own label and it is a tool for big companies. Take supermarkets for example. When they place their own well-known logo to the set of goods. For example, you may see in the SPAR water, pasta, beans, sauce and other goods with the SPAR name. This is a private label.
The difference between a private and a white label is that private label goods are only produced for the brand name. Usually the brand owner controls the production and is involved in most of the processes.
Pros and cons of White Labels
White Label projects have a lot of advantages:
- Low investment compared to creating a product from scratch.
- High quality of the final product.
- No research or technological development costs.
- Very few technical skills required to get started.
- In a few hours, in most cases you are already ready to earn.
- Allows you to take advantage of the work of experts.
- You have less responsibility for problems.
- Allows you to have an internal developer, practically free of charge.
- Little to no control over the product creation.
- Wide competition that offers our same product.
- White Label projects have less value than completely unique products and services.
White Labeling marketing strategies
Creating a White Label website is very simple. Making it profitable is more complicated. While getting started is easy, , emerging is more challenging.
A basic strategy is to create a recognizable identity. The hardest thing is trying to be unique. But, not in the products you sell, but how you do it.
Social network give you the opportunity to reach thousands of people, even with just a few dollars. But, don’t exclusively use social media to sell. Use social media to connect with your audience. You could also aim at advertising campaigns with Google Ads, finding terms related to your industry through the Keyword planner.
How to create brand products and be different on the market
Offering products sold by thousands of other sellers is not necessarily a problem. Often, the key to a business is to improve what’s already there. Reinventing the wheel is not a goal, but you can find a way to improve the life of a tire.
What you have to do:
- Clearly define your brand and your goals.
- Create a social value strategy.
- Aims to build a bond with your customers.
- Do not imitate the big brands.
- Feature the site with colors that represent your brand.
How to brand services and differentiate within the market
Offering services is perhaps more complicated, because you have to work a lot on the credibility of the brand. Beyond the choice of service you want to offer, you need to analyze some important aspects:
- Study your potential customers and their needs.
- Analyze your competitors to understand their successful products.
- Aim for fast, high-quality service.
- Leverages collaborations with prestigious partners.
- Offer case studies on the effectiveness of your services.
- Take advantage of social networks, especially Linkedin.
- Develop an educational content marketing plan of the service more than of sale.
Tools for operating White Label projects
We’ve collected a set of tools for easier and more effective operation of the White Label projects:
- Sendy for sending basic emails or newsletters, and creating autoresponders.
- Mautic to manage social media marketing campaigns.
- White Shark for PPC agencies.
- Travelpayouts to create travel White Label portals.
- Shoutem, to create apps for iOS and Android from a variety of initial templates.
- Selling optimization with Load Faster.
- Content marketing through sites like Blogmutt.
- Social channels manage through 99 Dollar Social.
- Classic SEO tools, such as Google Webmasters or the list of 20 best SEO sources.
Is it profitable to create your own White Label projects?
White Label is an effective way to build your own service or create your own products with low time and money investments. This is an amazing way to build your own brand and provide quality services and goods. But, just like other strategies, it has its drawbacks.
White Label makes it difficult to create something unique, but the White Label project can grow to something very big and become a great source of income in the hands of a professional. With Travelpayouts, the White Label will earn you income on flight tickets and hotel bookings. To learn more about this possibility, please visit our knowledge base.