Entrepreneurs have a ‘do-it-all’ approach to business. Many of those hardworking self-starters achieve great success by taking on big projects and learning skills that they never had. Even though solutions don’t always end up in a success story, it’s worth a try doing everything by yourself, right? Well, not in modern times, no.
The greatest success is achieved by entrepreneurs who have the saying, ‘work smarter, not harder’. If you want to work smarter you can swallow your pride and use existing models to help you achieve great results faster.
‘White-labeling’ has become a well-known term amongst many successful business owners and aspiring entrepreneurs. When you ditch the idea of building everything from scratch and adapt a white-labeling business approach, you can achieve great success without working yourself to the bone.
What Is White Label Business?
It’s a simple process where a business owner or entrepreneur rebrands and markets existing services and products. After rebranding it appears as if they had originally made it. Instead of creating your own products from scratch, you can jump into the service line without any manufacturing hassles.
This sounds a bit like stealing, doesn’t it? Well, you can’t just buy someone else’ products, rip off the label and paste your own on it. There’s a legal way to go about this kind of business. Look at this example of a white label service agreement between two parties: http://seattleclouds.com/WHITELABELSERVICEAGREEMENT.PDF
This kind of agreement can include the purchase and re-sell of software, products, or services.
There are three main types:
B2C: Services and products that are bought from the original producer and resold to a consumer or client.
B2B: Services and products that are bought from the original producer, then rebranded and sold to another company who will continue on selling it to their consumers.
SaaS: Computer software that provides a service are rebranded and resold to reseller’s clients.
Key Factors To Consider When Searching For A White-Label Partner
You will be signing an agreement. Therefore, you have to be confident in the company you are going into business with. Here are a few key factors you have to consider before signing on the dotted line:
Similar Vision
You should both have the same clear goal and vision regarding the product or service. Avoid going into business with a partner that will sell directly to your customers.
Quality Of Product Or Service
Will the seller continue to improve the product that they are creating? It’s important that you pair with someone that has a passion to produce quality. As well as consistency in developing follow-up products that maintain quality.
Communication And Client Service
You want to start selling as soon as possible. Being part of a partnership with a company that has in place on- boarding training and inductions will get the ball rolling.
Furthermore, they will make it a priority to communicate with you. Reporting on performance and any changes in the production line. It’s vital that you have an open communication line with complete transparency.
Experience And Track Record
If you are looking for a white label business opportunity, then it’s best to find a company that has experience in this sort of agreements. Consult other entrepreneurs to ask for recommendations. If they have too many bad reviews from past clients, then it’s basically a ‘no-go’.
Experienced professionals will have clear contract terms and conditions. The process will be much smoother than with an inexperienced one.
Benefits Of White Label
In many cases white labeling partnerships are mutually beneficial. Here is a list of the top perks of practicing this business type:
Increases The Visibility Of Your Product
If you are a manufacturer of a certain product or service, it can be extremely beneficial to invest in a white label opportunity. Having third parties on board will boost the visibility of your product. Whether or not your name is on the label, doesn’t really matter, your product is selling.
Expert Help
You might be an excellent product developer, but lack in other parts of the business. Having a third-party marketer re-brand and sell your products is beneficial to both.
On the flip side, when you are an excellent marketer and advertiser, having a white label agreement with an expert product developer will guarantee that your brand will introduce quality to its consumers.
Lure More Clients And Consumers
When you partner with a company to re-sell their product under a different brand it strengthens your own business. Having a wider selection of goods to offer consumers and clients will benefit you in the long run. You’ll be able to attract more clients by marketing your brand on a variety of products.
Clients feel a sense of loyalty and trust when they find one brand who tends to most of their needs. Once they get used to your brand name, they will always associate it with quality.
Click here to learn more about marketing your brand.
Wider Choice
With the amount of white label industries to invest in, you’ll be able to broaden your horizons. For example: if you are in the restaurant industry, you can approach a vineyard and offer to bulk buy their wines. You’ll be able to put your brand name on it and sell it as your own house wine.
Do the same with cheese, coffees, and other drinks. Viola! An array of products under one brand name.
There’s no need in wasting any more of your time trying to perfect only one specific product or service. Consider white label business opportunities and see your brand achieving greater heights in no time.
