The path from a hired employee to the owner of a small to medium-size business is shorter than it seems. If you are a risk-taker, decision-maker and heavy-worker, starting a business in IT or digital will be easier than if you aren’t.
Ok, that was just a theory. In practice, no one can build a product without a single professional onboard, even a cross-discipline business ninja. In case you actually have enough money, there’s still no guarantee that development will fit the deadlines and that the final product will live up to initial expectations.
Luckily, today’s market is full of opportunities, ranging from one-pager website building to the boxed solutions that offer ready-made software as a takeaway. The last one is called the white label reseller business model.
White label business opportunities: from apps to platforms
White label is a business model where the original manufacturer of the product sells it to another business that promotes and resells it under its own brand. Figuratively speaking, a white label provider sells a finished technology to another business without a name and ‘packaging.’
The white label program is different from acquiring an existing platform from an IT company. Whenever you buy a positioned product, you buy it with brand, reputation, website, payment model, client base and a whole lot of things the previous owner put their efforts into. Sounds pretty solid, but the cost will surely be higher. Plus, if you decide to change something, there’s a risk that existing clients will refuse to embrace the new changes.
Another distinctive feature of white label business services is that despite being ready-made solutions, they can be additionally customized and scaled as business grows. The overarching idea behind it: if you know how to run your business and present the product, there’s no need to invest money in something that didn’t bring results yet. An app, a software platform or a website product – today, everything can be white-labeled.
Areas where White Label is most popular
As an entrepreneur, or on behalf of your agency, you can start a White Label business in any area virtually. Due to its flexibility, this model has recently gained incredible popularity in digital areas: advertising, software development, SEO, email and SMM marketing. As an owner of a White Label platform, you will be able to resell your software to the smaller or local businesses as a self-serve solution. However, it will also be possible to hire managers who will represent your brand and support your clients on a daily basis.
Advertising as White Label reseller
Advertising white-label online business offers all sorts of software platforms designed for buying and selling online ads slots in real-time. Most often, entrepreneurs acquire demand-side platforms (for programmatic inventory buying), supply-side platforms (for programmatic inventory selling) and ad exchange (a universal marketplace for direct supply-demand media-trading integration).
If you purchase a platform, it means you label it with your own brand logo and then start working as a reseller: give access to your platform to demand and/or supply parties according to your pricing model (pay per click, pay per mile, pay per install, etc.). Also, as an entrepreneur, you can collaborate with white label services and companies that outsource stuff that maintains and manages ad campaigns for your clients.
In fact, big corporations are laying high hopes on programmatic because the volume of purchases in this area is growing tremendously. Around 90% of digital ad spend will be generated by programmatic platforms before we reach 2020. Meanwhile, the value of the programmatic industry is expected to hit the bar of $220.38 billion by the end of 2019.
Thus, for instance, in 2016, the VHX video programmatic platform was purchased by Vimeo in 2016. Spotify expanded to attain 20% more revenue as the company launched its own audio-oriented programmatic platform several years ago.
White Label business opportunities in advertising:
- No time or money investments needed for development, design, testing, and platform licensing
- Ability to scale your platform and customize features on demand
- Ability to use your product for your own needs and resell services to advertisers, publishers, etc.
- Transparent ecosystem: as a platform owner, you stay aware of all internal margins and commissions that partners charge
- Higher safety: big companies usually purchase their own programmatic solution since they strive to create a private, trustworthy network of partners whose reputation is beyond doubts
Apps as white label business software
The niche of apps is overrepresented only at first sight. In fact, it’s like a competition between Porsche and Toyota: a proper segmentation will help to determine how to compete better: by positioning your app as a cheaper alternative to what already exists, or as a completely new decision made for a certain pool of customers.
Taken that average mobile user spends 90% of the time using apps, launching your own is no longer a question of preference: it’s a solid must. Just like white label ad platforms, white-label apps are developed by the technology provider and then sold to one or multiple resellers. The details of the deal will depend on the conditions established by the technology providers and support plans they offer.
Even if you already have a corporate website and plan to launch an app version of it, you will still need to hire a team of mobile developers, as the mobile ecosystem is different from the web. If it is a mobile game you want to launch, the work will be even more complicated and demanding, as you will have to deal with lots of interactivity. But that’s only if you still want to build it from scratch.
At this stage, outsourcing your efforts to specialized white label teams seems like the best choice to save oneself from overhead costs, force majeures and unpredictable results.
Benefits of white label program for apps:
- Money needed for development, testing, design, licensing and full-time salaries
- Software as a service helps you to change your application according to the needs of the market and expectations of your customers
- Provided support for App Store and Google Play app downloads
- Opportunity to make custom, on-demand integrations
- The quickest way to deploy an app without having a unique idea
White Labeled SEO
Who could have guessed that SEO can work as a white label online business? But it does, and apparently, pretty much successfully. Even though for the past few years certain marketers predicted the end to the era of SEO, indeed it just drastically modified to become more sophisticated and less keyword-dependent.
To this day, more than 61% of digital marketers define their organic SEO strategy as a core mechanism that leads them to a better online presence. If you want to start your own SEO agency, it’s doable with a white-label, too. In SEO, white label functions as an outsourced service or a ready-made platform suited specifically to help agencies raise the SERP results of their clients.
If these are platforms, they work as self-serve or fully managed and supported solutions. Oftentimes, if an entrepreneur already has certain experience and expertise in SEO, they give preference to optimization via a self-serve platform. A fully managed platform allows reselling SEO services to clients with all the heavy-lifting managing work taken on their side.
Why the white label program in SEO is a good idea
- No need to invest money in development, designing, testing and licensing your SEO platform
- An opportunity to suit a platform according to a particular business niche SEO needs and position it as a unique solution
- A chance to buy a custom-made solution for your own business needs
- An option for agencies to centralize all SEO in one place: tools, measurement, etc.
- Better SEO system accountability; easier to provide transparent reports to clients
Email white label business services
Same as SEO optimization, email marketing isn’t going anywhere in the near future. Last year, users sent and received around 281 billion emails per day, and in 2022, this number will exceed 333 billion. More than 52% of companies automate their emailing campaigns. Email marketers indicate that by applying marketing automation, first of all, they hope to achieve overall service improvement (45.9%) as well as more high-quality leads (34.9%).
Marketers who automate their internal email campaigns usually apply free and paid automation platforms like MailChimp, Hubspot, Zoho or Drip. The White Label email marketing platform is what helps companies apply email automation if their business needs are very specific.
Likewise, the platform can be labeled and capitalized upon. As an agency or an independent entrepreneur, you will be able to toggle between clients and their tracks in one interface, access their billing details and customize messages for different user segments.
Advantages of email white label business software
- Saving resources for development and implementation
- 100% workflow automation: from segmentation to email sending
- Ability to perform cross-sells and upsells
- Flexibility and the chance to upscale when needed
- Holistic view and measurability for all email campaigns
White Label SMM platforms
Today, businesses of any size and specialization are actively entering social networks. Facebook, Twitter, and Linkedin as additional channels of sales and lead work just perfectly. To be exact, already entered: there are more than 50 million corporate website pages of small businesses represented on Facebook.
Additionally, social media sites, like Instagram and YouTube, on average bring around 25.6% of referral traffic to corporate websites.
Social media pages create stronger bonds between brands and their customers, turning them into loyal fans. Therefore, services for automatic posting, detailed account analytics, and post scheduling are in high demand. If all these useful functionalities exist on a single custom platform, a daily workflow of marketers is greatly simplified.
Custom-made SMM platforms have evolved to the point where they are able to offer marketers such services as pre-written messages for posting. Basically, it works as a phrase broadening aimed to support and educate novice marketers while they learn to craft their own messaging style.
What you win using SMM white label programs:
- No need to invest money in development and implementation
- Advanced SMM campaign analytics
- Automation removes 90% of the mundane workflow associated with posting, liking, manual scheduling, sharing, etc.
- Suggestion tools make it easier to keep up with the latest online marketing trends
- Quick resolution of technical issues
To wrap it up
If it seems to you that everyone can start their own business, you are right. White Label opens up new opportunities for both independent entrepreneurs and large companies who decided to diversify their business and try something new.
While you’ve been reading this article, the odds are high that thousands of white label reseller businesses were launched across the world. Why? Because no matter what industry in which you plan to build your business, such a model effectively deals with the majority of challenges of building platforms from scratch: from starting capital to sustainable operation.