What is White Labeling?
While the term White Labeling has a bit of a strange history, it is a business concept that has been put into practice for the better part of the 20th century. The term originally derives from the world of radio and club DJs to refer to exclusive unreleased vinyl records, usually packaged in a blank or white label without any branding or marketing. These white label records, absent of any imagery aside from a title scribbled in marker, took on an air of mystery and exclusivity. Only the best DJs would receive these special pre-release copies containing the fully mastered music before marketers could design art and packaging to make it appealing to the consumer. Thus, white labeling came to represent the finished product, absent of the frills and branding used in all modern products. White Label services regularly do this today, providing a fully functional product to an agency that they then brand and market to their audience.
How does it work?
In the context of the production of goods or the rendering of services, White Labeling allows a more efficient division of labor by allowing firms to focus and invest in the processes in which they specialize. For software white labeling, the software development firm can focus on creating technical solutions and the front-end agency can focus on customer relationships, marketing, and other parts of their business that are fundamental to their operations and success. In this way, the software firm can focus on producing and maintaining high-level technical products and services, the front-end agency can focus on their operations, processes, and customers, and the combined partnership between the two firms allows them each to achieve a meaningful increase in efficiency and productivity. White Labeling allows both firms to operate at a higher capacity, produce better products, and ultimately, offer a better experience and price for customers.
How can White Labeling help my firm?
White labeling can not only be used to enhance the productivity of a firm, but it can also be a terrific way for firms to offer new services or features that would otherwise require large investments of time and capital to provide. By using a White Label software agency that is already tried and tested, firms spare themselves from spending unnecessary amounts of money to hire, train, and develop the capabilities in-house, and more importantly, they mitigate the numerous risks associated with establishing the in-house capacity. In the digital marketplace, it makes less sense to build everything from scratch with the vast amount of resources available, and with firms specializing in providing these types of baseline, customizable products that allow firms to build capacity quickly and efficiently for the smallest possible expense and risk.
Firms also use White Labeling to augment production capacity in a more responsive fashion. If a firm has determined that they are only able to properly support 10 clients, but suddenly they receive orders for work from two more, their options are either to support 12 clients at a substandard level, wait until work ends for current clients before beginning to produce for the new clients, or they refuse and risk losing future business from the two firms because they were initially denied. By partnering with a white label firm, agencies can ramp up production, receive detailed, high-quality design/UX/application/feature builds on demand for a lower price. Project deliverables are inspected and approved by the front-end agency and then delivered and invoiced to the clients as a finished product with the price attuned to the agency’s going rate. After all, not all minute or basic tasks need to be handled by the in-house professionals of the front-end agency, but their special touch can be applied after the basic work has been completed. In this way, the firm does not have to refuse business and avoids having to make expensive capital investments but is still able to operate at a higher operational tempo and greater capacity.
For agencies, White Labeling is a prudent way to add more advanced services to your portfolio, move into a new market, or cross-promote your own products or services. If you are not able to invest the time, resources, or knowledge to build an in-house solution, the White Label software development might just be the best strategy available for your company.
To learn more about Devvly and our White Labeling services, contact us by pressing the Request Quote button above, or e-mail us at Info[at]devvly.io
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