The art of white labelling

Written on 04 July, 2012 by Verity Meagher
Categories Marketing

In the offline world, white labelling refers the practice of purchasing a generic business and personalising it according to your own branding, customer base and product offer. Online white labelling is similarly effective, with the potential to see minimal investment reap maximum rewards.

Whatever the nature of the white labelled business, the concept allows entrepreneurs to launch a new venture and effectively avoid the costs and logistical headaches that come with starting an enterprise from scratch.

When it comes to the online arena, white labelling can offer businesses similar advantages - purchasing an out-of-the-box solution can eliminate the pains associated with moving into the digital space. However, deciding to purchase and rebrand a white-labelled business is not without its challenges.

Although choosing the easy option can allow you to streamline operations without wasting time setting up shop, it can also see you sacrifice an element of control - a factor that can have a serious impact on your bottom line.

Take on new markets

Although choosing the easy option can allow you to streamline operations without wasting time setting up shop, it can also see you sacrifice an element of control - a factor that can have a serious impact on your bottom line.

Most white label solutions provide a full suite of tools for marketing and selling products - this often includes graphics, logos and content as well as real-time reporting functionality. Careerbuilder is an example of a company that has successfully leveraged white labelling to drive growth. However, it's worth noting that the business is not a leader in its industry - a fact that highlights the importance of tailoring your white-labelled business to the subset of your customer base that you intend to reach.

White labelling checklist

If you decide to adopt a white label strategy, take note of our three-step checklist:

  1. What is your service proposition and how will white labelling grow your business? If there’s no obvious benefit or it doesn’t allow you to optimise your existing assets, it’s probably best to give it a miss.
  2. What degree of control do you want to exert over your products? Using a white-labelled solution means enlisting the help of a partner for marketing and distribution.
  3. Partner relationships are intrinsic to a white label strategy. Do you have enough resources to manage this relationship?

White labelling is particularly effective for businesses that already enjoy a strong brand presence and are looking to monetise their existing customer base. By taking advantage of beneficial white label solutions, your business can continue to grow without the need for heavy investment.

Interested in starting your own online business but unsure on how to start? Give our Reseller line a call and discover the world of Reselling 1300 885 884 today!